Topic: When 1 bitcoin is equal to 1 bitcoin.. - page 2. (Read 2848 times)

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.

Bitcoin can be doublespent if it is unconfirmed or if one entity holds 51% of the mining power and decides to execute an attack. It is relatively difficult unless you have a lot of money. It is quite hard to counterfeit money since there are security features which is hard to counterfeit too.

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

Bitcoin will always represent a value. Could be fixed worldwide on the 'living standard'. So let's say for example a big mac wil cost the same amount of BTC here as it does anywhere else. Not like now where when compared prices of the same asset vary a lot. We could set the BTC fixed on a modal months salary.

When 1 bitcoin is equal to 1 bitcoin, central banks' fiat failed as an experiment and people finally got to the point of using real money like gold and silver, and bitcoin or [insert favorite alt]

Thiss. Fiats may come and go, but I dont think Gold will go away anytime soon.

We should peg Bitcoin against Gold. If volatility lets us one bitcoin will become one bitcoin in time.

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

You are confusing bitcoins with fiat. Contrary to euros and dollars, bitcoins cannot be counterfeited or doublespent - in fact, Bitcoin is the solution to these problems.

Wrong statement in case of doublespending attack.

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

How do you knwo if you can buy 1 hamburger or 1 mansion with it?

But bitcoin is very likely always going to be pegged to fiat. We currently need to be able to buy it with fiat so it is always going to have a fiat value. Remember even the exchange rates for buying other fiats fluctuate daily so the best I think we can hope for is a future with some stabilization.

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..