Bitcoin is becoming a Unit of Account in a surprsing way.
Of course, most people are not and probably not going to start pricing things in Bitcoin for quite some time but what was once thought of as a distant possibility might be closer than you think.
In the past few months, we have been seeing Bitcoin making new all time highs in many countries around the world. Starting with countries facing hyper inflation, Venezuela, Lebanon, Turkey, Argentina and so on, but what is more interesting is when we started seeing Bitcoin gradually blowing of new ATHs in countries that is seemingly ok-ish.
Just a few weeks ago, Japan becomes the largest economy, the first country in the G7 to see a new Bitcoin ATH. Today we see Norway following suite with many countries lining up. What this shows us is essentially the effect of monetary policies and currency debasement over the past four years.
Inflation is difficult to perceive when the unit of account is always fluctuating in value relative to one another, and in an economy where almost 200 currencies tries to remain stable to one another it is not always clear how each currency is holding up as domestic price are almost always subject to some form of subsidy or price control.
Bitcoin (and also gold) is blowing off the veil of sophisticated financial alchemy. Bitcoin does not have the concept of borders, countries, or jurisdiction. It is a global monetary asset and 1 Bitcoin anywhere on earth will always be worth exactly 1 BTC.
This has made Bitcoin a perfect unit of account for measuring the value, or more precisely, the degree of debasement in each currencies around the world. 1BTC = 1BTC no matter where you are in the world and any difference in terms of how much of the local currency is needed to buy 1 BTC is not a function of BTC but a function of the value of the currency, plus and minus all the premiums and discounts from other factors such as bans or sanctions.
Becoming a unit of account in pedestrian scale may require a much larger network effect but today, Bitcoin is performing the duty of a global unit of account, blasting away the shadow of lies and deceits with its light of truth.
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npub1pr…42xcv
2024-02-27 02:52:11
Author Public Key
npub1prya33fnqerq0fljwjtp77ehtu7jlsjt5ydhwveuwmqdsdm6k8esk42xcvPublished at
2024-02-27 02:52:11Event JSON
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"content": "Bitcoin is becoming a Unit of Account in a surprsing way. \nOf course, most people are not and probably not going to start pricing things in Bitcoin for quite some time but what was once thought of as a distant possibility might be closer than you think. \n\nIn the past few months, we have been seeing Bitcoin making new all time highs in many countries around the world. Starting with countries facing hyper inflation, Venezuela, Lebanon, Turkey, Argentina and so on, but what is more interesting is when we started seeing Bitcoin gradually blowing of new ATHs in countries that is seemingly ok-ish.\n\nJust a few weeks ago, Japan becomes the largest economy, the first country in the G7 to see a new Bitcoin ATH. Today we see Norway following suite with many countries lining up. What this shows us is essentially the effect of monetary policies and currency debasement over the past four years. \n\nInflation is difficult to perceive when the unit of account is always fluctuating in value relative to one another, and in an economy where almost 200 currencies tries to remain stable to one another it is not always clear how each currency is holding up as domestic price are almost always subject to some form of subsidy or price control.\n\nBitcoin (and also gold) is blowing off the veil of sophisticated financial alchemy. Bitcoin does not have the concept of borders, countries, or jurisdiction. It is a global monetary asset and 1 Bitcoin anywhere on earth will always be worth exactly 1 BTC. \n\nThis has made Bitcoin a perfect unit of account for measuring the value, or more precisely, the degree of debasement in each currencies around the world. 1BTC = 1BTC no matter where you are in the world and any difference in terms of how much of the local currency is needed to buy 1 BTC is not a function of BTC but a function of the value of the currency, plus and minus all the premiums and discounts from other factors such as bans or sanctions.\n\nBecoming a unit of account in pedestrian scale may require a much larger network effect but today, Bitcoin is performing the duty of a global unit of account, blasting away the shadow of lies and deceits with its light of truth.",
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