Topic: When 1 bitcoin is equal to 1 bitcoin.. (Read 2848 times)

bitcoin will need to have an economy of it's own, which will take a while to form, it will probably not happen this decade.

it will help if complete countries accept bitcoin as a currency, or if commodities like gold/oil are priced in bitcoin with prices that are independent of the dollar/bitcoin ratio.

and it also helps if there are some services or shops exclusively priced in bitcoin.

the purchasing power is measured something like this.

In 2015.... 900 btc to buy a house
In 2020.... given the same economic condition, only needs 700 btc to purchase same house on the same location

That means higher purchasing power for 1 unit of bitcoin

why do you need fiat? Isn't that what bitcoin existence is all about?
As long as the age old system is there, we'll forever be bound by fiat

Let's face it..As long as we continue to benchmark bitcoin against fiat, we can never reach that stage to independently claim "1 bitcoin is equal to 1 bitcoin" and that is no matter how hard you tried to convince people. Mainly this is what I feel is lacking and what I envision for bitcoin to become a currency of its own.

idiot! every currency is linked to every other currency. 1 btc IS worth 1 btc, but is will never be worth 1usd or 1gpd or 1ruple etc but 1usd is worth 1usd etc, cant you see the stupidity of your comment now?

If you ask me a question how much a loaf of bread is worth, I should answer 5mtbc (for example) not $1.2 dollar of btc worth.

If you want Bitcoin to be a world currency then there should be an exchange rate. What you're saying is similar to saying you want the euro to be isolated and not traded for other currencies. That's not going to happen anytime soon. Bitcoin is a currency without a country so there is no economy built around it. Currently, it's impossible to say what a loaf of bread is worth in bitcoins without exchanging it to a regional currency first.

But bitcoin is very likely always going to be pegged to fiat.

If we have goods priced only in bitcoin and accept no fiat for it (that would be the best, but I see this lacking)
 

Bitcoin can be doublespent if it is unconfirmed

or if one entity holds 51% of the mining power and decides to execute an attack.

Bitcoin is a currency without a country so there is no economy built around it.

Therefore you must define the value of a bitcoin. A life standard month income, or even a loaf of bread, fix the price of thos assets to 1 BTC and do the math for the other stuff. Still assets will vary, supply and demand still applies and local differences may still occur.

The Euro made paying and prices in Europe more the same, local differences still occur, but they are more on the same level. As the Euro showed in Europe, the BTC might just work worldwide

I know it because its manipulated to have X price.

How do you know the purchasing power of 1 dollar if we don't compare it to anything else?

If you want Bitcoin to be a world currency then there should be an exchange rate. What you're saying is similar to saying you want the euro to be isolated and not traded for other currencies. That's not going to happen anytime soon. Bitcoin is a currency without a country so there is no economy built around it. Currently, it's impossible to say what a loaf of bread is worth in bitcoins without exchanging it to a regional currency first.

If you want Bitcoin to be a world currency then there should be an exchange rate. What you're saying is similar to saying you want the euro to be isolated and not traded for other currencies. That's not going to happen anytime soon. Bitcoin is a currency without a country so there is no economy built around it. Currently, it's impossible to say what a loaf of bread is worth in bitcoins without exchanging it to a regional currency first.

Let's face it..As long as we continue to benchmark bitcoin against fiat, we can never reach that stage to independently claim "1 bitcoin is equal to 1 bitcoin" and that is no matter how hard you tried to convince people. Mainly this is what I feel is lacking and what I envision for bitcoin to become a currency of its own.

So here's my thought.

For an Individual's perspective
A person earns his wages in bitcoin (we are there)
A person can spend his earning to fulfill all his daily needs which means he/she can buy anything, and I mean anything with bitcoin (Something we are lacking because not all goods and services accept bitcoin)
If we have goods priced only in bitcoin and accept no fiat for it (that would be the best, but I see this lacking)
At the end of the month, refills back his spending power from his monthly wages paid in bitcoin
A portion of his earning, not spent is kept in the wallet and HOARDED...and yes, hoard all you want

For a business entity
Make available products priced in bitcoin
Accounting ledger and reported earnings all done in bitcoin
Pays workers' wages in bitcoin

So what I'm trying to say here is that as long those two infrastructure or components are there, we are basically on our own enclosed ecosystem

What prevents bitcoin from taking off is basically:
#1 : The spending part where we can't buy all the things we want using bitcoin
#2 : Lack on the number of company/business entity which is bitcoin oriented

Basically we are telling people to spend. But the actual fact or scenario is that we can spend but at the same time, we need to buy back to cover the amount spent or else it will just be a net drain of fund which leads to nothing for bitcoin. However, if we manage to establish the ecosystem here, we are basically on our own. Free from fiat and that is when 1 bitcoin is equal to 1 bitcoin..