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0 sats \ 2 replies \ @stackt0shi 21h \ parent \ on: Money Isn't a Measuring Stick, Idiots (TDE, Pete Earle) econ
Since 99% of prices of goods we see are measured in fiat, the only way to reliably measure the value of a sat (relative to other goods) is to use its CURRENT fiat exchange value, which is an effortless process using modern technology, so we used that fluctuating unit to agree on a price, but I fail to see what the previous or future value of the fluctuating unit that's helping us price in sats has to do with a the trade occurring at a SINGLE point in time.
I think you really just took a lot of den's words and applied your own meanings to them.
You basically admitted that the exchange value of a sat fluctuates, because relative values between goods fluctuate. The value of a satoshi fluctuates and adjusts to the relative demand for various goods across the economy. That's all he was saying... it has nothing to do with the Fed or Keynesianism or whatever else you were accusing him of...
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"you really just took a lot of den's words... The value of a satoshi fluctuates and adjusts to the relative demand for various goods across the economy."
He put in 48pt font size "A perfectly stable dollar, sometimes referred to as a fixed dollar, would be a dead dollar"
There's a conflation here between fluctuating prices of goods and services (emergent, ephemeral information determined by supply & demand) across the economy and the fluctuating exchange value of the currency (determined in part by the number of units in circulation).
What bitcoiners are referring to when they say they want a fixed yard stick is stable purchasing power, which ignores relative fluctuations in the economy, because as individuals, we can't always operate on supply & demand curves. We have ranked preferences (ordinal utility) and when something costs more, we'll buy the cheaper brand, not 5.375 oz. less laundry detergent. If all laundry detergent is more expensive, then it must shift the demand curve for other goods to the left, or we all walk around with smellier & dirtier clothes, but you catch my drift. If other goods have less demand, that lowers the clearing price, so net, there should be no effect on purchasing power.
Central bankers are always printing though, so those fresh dollars (not the ones "in" your bank account) just chase all goods, the detergent that got more expensive and the goods that would have had less demand aren't affected as much. Purchasing power declines as a result.
That is the bullshit fluctuating dollar we're here to bury.
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