How do I pay in a Bitcoin only world? \ stacker news ~bitcoin

122 sats \ 8 comments \ @BTCLNAT 11 Sep bitcoin

Today the price of everything, including Bitcoin, is reflected in fiat money, and one of the concerns about adopting Bitcoin by merchants is precisely the volatility of Bitcoin in fiat money. I don't doubt the usefulness and benefits of Bitcoin as a real and secure currency. But my question is:

If in the future we have a Bitcoin-only world, how do you determine how many Satoshis I should pay or charge for a good or service? Will it be related to the PoW for obtaining or creating that good or service?

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21 sats \ 0 replies \ @DarthCoin 12 Sep

Will it be related to the PoW for obtaining or creating that good or service?

Exactly

This is related to basic economy: how you determine the price of product or service. Is about the time and materials used to produce 1 unit of that product.

For example, you are producing shoes. So you calculate (in sats only)

how much time it takes for you to produce that pair of shoes.
how much it cost you the materials
how much it cost you the maintenance during this time (housing, machinery, utilities etc)
how much you want to save, a % on top of all

You can calculate per hour for example so you can later apply this "cost per hour" to anything you do.

Then when is about to sell a product of service, just apply your price. Anything you put on top is your savings.

STOP thinking in fiat. Sats are just another unit of account, adapt to it or die. If you always go back to make the conversion in fiat you will get crazy and you will lose. START thinking in sats. If you do not know from where to start, maybe this site could help (sometimes is offline, but is good) https://www.pricedinbitcoin21.com/

21 sats \ 1 reply \ @mdominicorobin24 12 Sep

If you are too concerned about volatility you will not be able to learn how to use it. Number crunching will take you there. To tell you frankly Fiat is more volatile it is just that they are not showing the true free market price of their currency. Forex will not tell you anything about it since most central banks are controlling the figures. Fiat is more volatile. You are just not aware of it. The price of Bitcoin in Fiat is an indication that that your Fiat is volatile. So, thanks to Bitcoin now you know, how volatile the price of your Fiat is.

0 sats \ 0 replies \ @BTCLNAT OP 12 Sep

In the post I mention the volatility of the BTC price, not as a concern for me, but rather as a concern for the merchants we try to help adopt Bitcoin. On the other hand, the objective of the question is to clarify this element, so as to help more people to see the usefulness of Bitcoin in their lives.

0 sats \ 0 replies \ @bitalion 12 Sep

I couldn't tell you what it would be like in the future, but the truth is that the Bitcoin pattern is getting closer. As far as I know, there is no case where prices are only shown in Bitcoin, they always follow the reference of the dollar.

0 sats \ 3 replies \ @Msd0457890 11 Sep

I think businesses that accept Bitcoin should have a standard price regardless of the volativity of the Bitcoin price.

0 sats \ 2 replies \ @BTCLNAT OP 11 Sep

There is an experience, if I remember correctly, in El Salvador, where when charging, the product or service has a price in SATs, regardless of the value of BTC at that time. I suppose that since it is a circular economy, everyone has prices in SATs and the fiat value does not matter.

But what happens when they have to obtain some raw material or machinery in a non-Bitcoin market?

21 sats \ 0 replies \ @teemupleb 12 Sep

I doubt they price goods in sats in El Salvador (or maybe the Bitcoin Hardware Store in El Zonte does!)

By law, businesses have to accept bitcoin though if they have the technical means to it.

0 sats \ 0 replies \ @Msd0457890 11 Sep

Of course on that point you are right.