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@ Seth Michael Steele
2023-07-24 21:10:18
Let's imagine a world where home-cooked meals can be bought with turds. One week, a meal costs 10 turds, the next week it's 8, and then it drops to 2. Would the perceived value of the meal decrease because it costs fewer turds? Would you start accumulating turds instead of meals?
This is a metaphor for the relationship between fiat currencies and #Bitcoin. Fiat currencies, like the turds in this analogy, can fluctuate in value, but that doesn't necessarily reflect the intrinsic value of what they can buy (the home-cooked meal).
#BTC, like the meal, has inherent value due to its utility and finite supply. The fact that we can still exchange fiat for #Bitcoin is somewhat surprising, given that while you can hold and then convert #BTC (the meal) into more fiat (turds) down the line, the reverse is only possible through exchange, historically. This highlights the unique value proposition of #Bitcoin in our modern economy.