250 sats \ 3 replies \ @ceife 9 Sep 2023 \ on: If we sold bread at a fixed price, like 5000 sats, would you buy it? bitcoin
In my opinion:
If bread were sold at a fixed price of 5000 sats, some people might consider it a good deal, while others might find it expensive, depending on the current value of Bitcoin and their budget
What u think?
Thanks for that input. Great point.
2 part answer, (1) good vs bad deal and (2) why some bitcoiners spend their sats
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The key is to set the price lower than what it would cost in fiat. Remember that we suggested that over time, keep reducing the price. Essentially the seller is giving the buyer a discount because the seller knows, that in order to get bitcoin "out in the market", they need to go through a bit of hassle. Whereas in this scenario the sats go directly to their cold storage (in 2 simple steps). 5000 sats is less than $1.5 (today), but this was just an example. It could have been 3000 sats or 1000 sats depending on which country the shop is in.
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Basically, the world of bitcoin is a lot more than just the "market value". For a lot of bitcoiners that have been stacking for a while (pre-2019), they don't even have an account on an exchange like Swan or Coinbase. Then there are others that would rather mine bitcoin (at a small loss) just to simplify the process of stacking sats, because they know over the long, long, long run, they'll be fine. They exchange sats with each other on places like "Fountain", i.e. indirectly supporting other bitcoiners by listening to their podcasts. They donate to funds like Geyser, etc. So, sats economies are already being created in parallel systems.
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On second part & my opinion too:
Maybe Bitcoiners spend their sats to support Bitcoin's growth, avoid traditional banks, show confidence in its long-term potential, enjoy peer-to-peer transactions, and contribute to Bitcoin-related projects and communities.
Give me an argument if I'm wrong
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You're 100% right.
That's how the network grew to where it is today. In the first few years, people would just give away Bitcoins just to bring more people into the network because they wanted it to work. There was no price, so it was even hard to find people to accept them for free (you needed to jump through technical hoops).
Just imagine the combined thousands of voluntary hours of software design and development that went into building the lightning protocol which is now available to all of us for free. Yes, there are lightning fees, but the wallet providers can use the code base and build on top of it for free. It takes a lot of dedication for the cause by so many people to have brought us where we are today.
We are now part of the community that will take it to the next level.
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