Price Is a Matter of Perspective and Subjective Value, In Relation To Crypto, Gold and FRN's

in #money7 years ago

Food for thought:

If you held gold back before it was considered money, what do you think would happen to the value of that gold as the market ultimately decided it was in fact money?

As that transition happened, do you think you could take an ounce of gold to market and get more goods and services or less as more and more people adopted it as money?

We know that inflation in the FRN has made it so an ounce of gold gets you roughly the same amount of goods and services now as in 1913 when the Fed came into power, however the amount of notes you need has increased dramatically.

THAT is the context through which you should view the increased in "price" of bitcoin. The increase in dollars needed to buy a bitcoin = deflation of prices in the market for goods and services from the perspective of being priced in bitcoin.

Sure, theres a lot of room for growth in businesses adopting bitcoin, however crypto is so easily liquidatable into the market that its not an unfair assessment.

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