If/when fiat collapses, then crypto will likely take on an additional characteristic of money, becoming a "unit of account". This means that goods and services will then be priced in crypto just like they are now proved in dollars or yen or...whatever. So, the value of crypto won't then be determined by how many dollars or yen it can be converted into but rather by how many Big Macs or Starbucks coffees or Tesla cars one can buy with it.
You are viewing a single comment's thread from:
I still don't see how the value of that "unit of account" will be determined. Something costing "two bitcoin" is meaningless if people do not have a reference point up against which they can determine what it's actually worth. It's like good and evil, you can't define one without the existence of the other.
On my second question: Imagine having bought Bitcoin at two grand a piece, The fiat system collapses, a new one comes up with a new global reserve currency (which could be the SDR) and a sandwich ends up costing the equivalent of 8 Bitcoin.