Don’t mind me just thinking aloud.
Just watched a video from The Bitcoin family and it prompted me to make a comment which I then decided to post here instead. In some ways I may be repeating myself but I feel it is even more applicable now than when I may have touched on this point in a previous blog.
It continues to amaze me when we keep measuring the value of Bitcoin in US dollars. When are we finally going to find an alternative constant of value?
Why don’t we start to use the very same measurement that fiat currencies use to measure its “real time’ current value. That ‘basket of goods’ that is used to calculate the consumer price index.
But we could go a step further and take out a small number of items from that basket that are absolutely essential for daily survival. I can think of three things that housewives are prepared to die for in between the supermarket aisle ways of the Walmart;
A loaf of bread, a litre of pure drinking water (or should I replace that with a 1 litre bottle of diet coke?) and a 36 pack roll of toilet paper.
So how many of these basic items can anyone purchase with their chosen store of value because even a 2009 Bitcoin hodl will be forced to make a ‘life or death’ decision with his Ledger Nano X Cold Storage wallet in his other hand when there is nothing else to eat, drink or wipe his backside with within a hundred mile radius of his hideout and no gasoline for his Tesla ( I meant for the generator to charge up his Tesla due to a North American nationwide power cut that was initiated by a solar flare storm that short circuited every solar panel connected to the distribution power grid.)
Sorry I got a bit carried away there but coming back to current civilisation reality and regardless of Bitcoins insane price volatility, going up and down, fiat money is not really fluctuating at all in comparison, it’s just following a constant slow but sure downward trend gradually losing its purchasing power overtime that more recently seems to be declining on a monthly to near weekly basis.
Even if Bitcoin would go to zero, what zero are we talking about?
I am starting to imagine a time when a growing number of merchants and dealers start to gain a preference for Bitcoin (or some other commodity or precious metal) instead of this fiat currency as a means of payment. In fact this must be the case already because some individuals have been able to live virtually completely ‘off grid’ lifestyles in hiding with no ‘offshore’ banking account , still being able to finance and purchase those “basket of goods” exclusively with crypto currency.
If this inflationary spiral continues and you want to exchange your tangible goods for something that can store value with non inflationary qualities within its own currency environment and protocol what would you choose?
We may even come to a point where these very same merchants will start to refuse dollars in favour of Bitcoin, regardless of what CoinMarketCap dollar to BTC price indicators are stating. Especially when we consider its mobile, bulk and weight friendly characteristics in comparison to other alternative asset possibilities and an ever increasing global recognition of its financial ‘store of value capabilities.
As Micheal Saylor once said in an interview ‘The value and character of the asset is formed by the characters of those who choose to invest in it”
And for those that don’t trust Bitcoin, that’s just what makes it almost perfect. Trust in anyone or in any institution is not required in its operation, distribution and usage.
Bitcoin is not going anywhere, anytime soon. Maybe we all need to finally read or reread its White Paper to remind ourselves why we choose to invest in it in the first place and change our dollar based paradigm view of it.