Han Shan on Nostr: the exchange rate of a pair follows the *prices* of each individual asset, as ...

the exchange rate of a pair follows the *prices* of each individual asset,
as measured in the dominant Unit of Account.

because otherwise degens can jump into one asset
flip to the other
and sell for free fiat.

this action forces the trading pair to follow the USD prices of the assets.

All assets
and all charts,
we are going to mention here
are USD denominated.

quoting
nevent1q…wwe7

The USD Denominates Everything
---------------

Because apparently it needs to be said,

the only reason you can make the conversion BTC->XMR
or to whatever

is because you have an underlying UoA denomination to compare them with.

its the US dollar.
it denominates everything.

you are comparing
two USD denominated prices.

the price of one thing.
as measured in USD.
against.
the price of another thing.
as measured in USD.

A comparison of the relative FIAT value of two things,
that is what a price graph is.
As long as the UoA is the US dollar.