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278 sats \ 1 reply \ @SimpleStacker 9h \ on: How do Bitcoin Circular Economies Work in Terms of Price Discovery? bitcoin
Not to be a cynic, but are they a flash in the pan, or do they usually survive a Bear market?
I think it depends how much of their economy still depends on interaction with fiat businesses. If a lot, then it will be difficult to survive a bear market.
From some other videos like from @JoeNakamoto, it appears many of them are dependent on a stream of donation of regular Sats, is it really true?
I wouldn't know, but it would not surprise me. Even it seems on SN people try to beg for bitcoin by telling us they are from developing countries.
And finally, how does price discovery (between Sats and everyday items) work in those economies? Are the prices still denominated in local fiats and the conversion happens at every purchase? Or somehow by negotiation we get a Sats denominated market clearing price for everyday items?
It should work the same way as any other economy. Supply and demand. If merchants see that their inventories are selling out quickly and there's still more demand, that's a signal to raise the sats-denominated price of their goods. If merchant inventories are sitting on shelves and they can't sell them, it's a signal to lower prices.
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0 sats \ 0 replies \ @DarthCoin 4h
It should work the same way as any other economy
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