Satoshis Are Superior To Stable Coins

Hey Jessatoshis

Wealth accumulation is a strange and complicated matter with the majority of us falling victim to the way value is measured with the help of currency. As I mentioned in my previous post there is a difference between currency and money and in the arbitrage opportunities between them expand during these boom and bust cycles and can make you wildly rich should you know how to see them and then take advantage of them.

Currency measures everything in nominal value which is subject to inflation so it's always a moving target. Let's say you measure value in USD, the price of a stock or a home can go up in USD but not up in value but since most people accept currency such as USD as a unit of account they assume things are increasing in value.

Measuring with a moving target

Fiat money is based on nothing so it cannot be an accurate store of value, it has to measure value at the currency level plus time to be understood. You need to understand how much inflation has taken place before you can understand if something is accurately valued in currency and to do that we use gold.

The measurement of gold is done in weight, ounces to be exact and we can always refer to weight, the weight never changes so we can use the weight of gold to measure how badly fiat money has inflated and how overpriced or undervalued an item is such as a home or stocks.

Stable? Seriously?

Fiat money is anything but stable it's on a constant debasement, the only thing stable about it is that it will lose value year on year. Stable coins may make it easier to bring users into crypto but it's, not a good store of value as it has to take on the attributes of what it is pegged to and therefore all stable coins are going to zero.

All stable coins are subject to government influence through money printing and there is very little point in holding stable coins unless you're using it as a pair to trade and generate more Sats.

Image source: - Steemit - @xsid

Save us Satoshi

Bitcoin the premier cryptocurrency, however, has its own level of measurement and we call it the Satoshi. It may be considered dust now or not worth much but it could potentially turn out into our new unit of account and how we measure value. Just like a weight is used to separate gold Satoshis could be used to divide Bitcoin.

Bitcoin has grown in price over the years and as it continues to absorb the money supply of fiat currency as people use it as a store of value it will eventually price itself out of the range of being a "one coiner". Very few people will have the privilege of owning a full Bitcoin. These 21 million pillars will be used as the foundation of the new economy.

The everyday transaction will be handled by the Satoshi, we could use it as a way to set the pricing on goods and services and with the help of solutions like the lightning network could pay sub-satoshi values in transaction costs as millions of new payment routes are opened on layer 2.

The Satoshi is how I measure my gains, I couldn't care less about the price of crypto in fiat. If there's one idea I think crypto needs to break away from is measuring everything in fiat and start to measure things in Sats.

It may not seem like a practical unit of accounting now, but we'll get used to it and over time it will make more sense. If BTC is to survive and continue its path, once BTC starts sitting in the 1 million dollars per coin level the Satoshi will be relative to a cent and by then many of us will be used to charging and paying for things in this new unit of account.

At least that's where I could see all this end up playing out.

Have your say

What do you good people of STEEM think? Will we eventually be pricing things in Sats?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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