When will we start pricing things in crypto?
We keep seeing the crypto world grow year after year, and more and more people are using it to pay for stuff (too few still though).
But, invariably, almost everything is still priced in USD or other fiat currency.
I price things, and pay for them, in crypto amounts quite often. I just did a couple weeks ago. But I'm an outlier, and most of what I buy and charge for is still in USD amounts.
How do we bridge the gap and get a crypto asset actually used as a unit of account for pricing goods and services?
Here's what we need to change.
🪙 Crypto Can't Be So Volatile
Really simply, it doesn't make sense to price things in an asset whose value (purchasing power) could literally be double, or half, the very next week.
How do we get here? By focusing on utilitarian, not speculative, crypto use cases.
If you're just a speculator, you want to pay a different price for an asset as everyone else, either for buying or selling. If a user, you want a fair price, even if it's the same as everyone else.
The more we have people buying and selling for around the same price, the harder it will be for speculators to move the price, and it will stabilize.
🪙We Need to Have (Especially Earn) Mostly Crypto
If you have $100, you'll want to know how much of that you need to pay for a certain thing. If 1 Bitcoin, you'll want that priced in Bitcoin denominations.
People just have way too damn much fiat, with crypto as a side investment. If they had so much crypto that they had no choice but to spend it, they'd want to price things in it.
Also, earning is huge. If you earn 200 Dash per month, you'll want to know if your mortgage is 100, your groceries are 12, your coffee is 0.2 per day, etc.
Every time I've been drawn to pay in fixed-denomination crypto amounts, it's been because I had a certain crypto-denominated budget.
🪙 We Need a Market for Crypto-Native Assets
This is the big one, and what I think will make the difference. We need to be paying for digital goods and services on blockchains.
Fees to use blockchains aren't priced in fiat, they're priced in the native crypto units. Just like any commodity like oil, the amounts you need don't depend necessarily on fiat conversion prices.
If you remember the NFT boom of last cycle, NFTs were priced in ETH (or whatever other native token). Premium Dash usernames are 0.2 Dash right now. And so on.
As crypto grows and people find actual utility in the blockchains, markets for digital goods and services will form, priced in the native commodities that power them. When this is a significant enough part of the economy, people will seek to be paid in these units and price other goods and services in them.
To summarize, we need to:
- End crypto volatility
- Own (and earn) mostly crypto
- Pay for blockchain-native goods and services
To summarize even further:
We need to use crypto as much as possible.
Thank you for coming to my corn talk. 🪙🌽
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I remember when I first got into Bitcoin, with a big tipping culture, there were a lot of people dealing with Satoshis, and mBTCs. Once Bitcoin started to skyrocket in price, this trend stopped.
I totally agree, that we need to earn more in Crypto so we spend in it too. Stablecoins are nice, but I feel like we're just using them as fancy names for USD/EUR..etc.
By the way, I put 1 HIVE for 20 Cards in my Offer to buy Steam Trading Cards, so when HIVE price increases, I'll pay more value per card than when it drops. Though if HIVE's value increased too much, I'll change my pricing.
When Lightning came around people priced things in Sats for a while. But too few people tried to buy things anyway, so they don't do that much anymore.
The volatility is an issue, but stablecoins help with that. Some people are selling for $HBD and the prices should be fairly stable.
A lot of people are just speculating on crypto rather than actually using it. I have spent some of my earnings here. It paid for a nice guitar and some trips to conferences. If the $HIVE price can go up a bit then I am likely to spend some more so that I can have things I want.
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Yeah stablecoins are a stop-gap to get things moving towards mass adoption. But eventually we have to end fiat reliance.
Was thinking about this while being on the toilet today. You who live om crypto, do you see prices in $DASH?
It would be such a big transformation for people if we priced in $BTC and see prices decline instead of always increase.
Are people ready for it?
It's not consistent, but I've priced things in crypto units many times over the years: salary, budget, expenses, and so on.
All the work budgets I've dealt with are in crypto, so I've kept accounting in crypto and tried to prefer to pay crypto-denominated invoices.
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