I say it again: What defines something to be MoE is the consensus on using it as currency.
I think this is the central point of our discussion.
What defines whether something is MoE is the consensus on its use given a society.
I see. I was calling MoE whatever two parties decide to use to transact. This seems like moving the goalposts.
My thesis is that bitcoin's value is dependent on its ability to be used for transactions. If the Lightning network doesn't function and the base layer is clogged, then bitcoin cannot be used regardless of what the "consensus" is. "Consensus" is meaningless if the transaction cannot be concluded because of a technical problem.
But assuming that the whole society has to reach consensus:
Example: Bitcoin is an MoE in El Salvador.
No, it's not. Most merchants in El Salvador don't accept bitcoin. By your definition I can say that the US Dollar is the only MoE in El Salvador at this moment.
So my questions are:
  • How is a society supposed to reach consensus on bitcoin as MoE? Gresham's Law dictates that people will choose the weaker currency as the MoE; therefore it is impossible that bitcoin ever becomes MoE.
  • How is bitcoin supposed to ever be used as a MoE if nobody develops the necessary infrastructure (mining, software development, Lightning nodes, channel liquidity, merchant apps, wallets...) because the only thing that matters is HODLing?
  • Do you even want bitcoin to become MoE?
No, it's not. Most merchants in El Salvador don't accept bitcoin. By your definition I can say that the US Dollar is the only MoE in El Salvador at this moment.
Using the premise that most people use dollars instead of Bitcoin, then ok. Bitcoin is not MoE.
How is a society supposed to reach consensus on bitcoin as MoE? Gresham's Law dictates that people will choose the weaker currency as the MoE; therefore it is impossible that bitcoin ever becomes MoE.
First, we let people acquire bitcoin for its SoV power. Then, over time, people will slowly use it as a MoE. Currently, there are people and companies that use it, so it is purely a matter of time for the whole society to use it.
In truth no. During the days of gold, silver and copper were also used, but later, with the loss of their SoV, they all succumbed to the use of gold as MoE. As I said, it's a matter of calm and time.
How is bitcoin supposed to ever be used as a MoE if nobody develops the necessary infrastructure (mining, software development, Lightning nodes, channel liquidity, merchant apps, wallets...) because the only thing that matters is HODLing?
I didn't say the only thing that matters is Hodling. I'm saying we're in the SoV moment, that's all.
"Bitcoin is not yet a currency. It's in the store of value phase. It's no use forcing him to be a currency, if he's still at a level prior to that."
You creating solutions for it to be MoE does not mean you are forcing it, you are just anticipating an inevitable need that will appear. Currently, hodler solutions are more used than PoS solutions. This is a fact. Over time, this will reverse. My point, again, is to wait and let bitcoin transform from SoV to MoE.
Do you even want bitcoin to become MoE?
This is not up to me and yes, it will become like me or not. But I would really like it to become, especially with merchants using LN instead of onchain transactions.
The main post says: SPEND & REPLACE is what we need to be shouting in the fiat + bitcoin convoluted world we currently live in, imo. I disagree. Swap "need" for "should" and the sentence gets a little better. There are people who want to rush bitcoin so that it becomes UaC soon, but it is not by forcing it to go to the next stages that we will achieve this. First, we need to get everyone on the platform, ensure that society has a consensus at each stage of the process. Gold took almost 2000 years, we won't make it in just 20 years and we shouldn't
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There is no such thing as Gresham's Law...
Nicholas Copernicus wrote his Law in 1526, when Thomas Gresham was just a young kid... #128857
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