04-04-2022, 03:15 AM
How should we price our Bitcoin and crypto holdings when the dollar falls apart?
<!-- SC_OFF --><div class="md"><p>Obviously almost all of us track the value of Bitcoin in US dollars since that's what so many of us have grown up using and think of as "money value," but the dollar is in perilous decline, and looking at our BTC or crypto holdings in terms of dollars is going to get weird very quickly.</p> <p>So how should we peg or track the purchasing power of our BTC and crypto if or when the dollar floats away like the hot air balloon it truly is? While keeping numbers that at least feel like the same scale? A couple possibilities...</p> <p>Liters of Gasoline per Bitcoin: A liter of gasoline in New York is currently $1.02. So if Bitcoin is currently $46,400, it's 45,490 Liters. It seems like both the gasoline price and the Bitcoin price would go up if the dollar collapses. But the downside of course is that gasoline prices are heavily manipulated by politicians and despots. So there's another option...</p> <p>Milliounces of Platinum: This is kinda cool. An ounce of platinum as I write this is $1,005. So if Bitcoin is currently $46,400, it's 46,169 milliounces (mOz's? mP's? because of course we don't have enough acronyms here already). The price of Platinum does fluctuate a bit (it was $1028 dollars at the start of 2021 and about $1200 last month), but mOz's is close to the dollar pre-collapse, and uses a precious metal without tying it to gold since some people may not like that.</p> <p>January 2020 Dollars. We could possibly just peg Bitcoin to the US dollar at a certain time. The dollar today is only about 110% of the January 1st, 2020 dollar, but 1/1/20 seems like a nice even date that was before the pandemic. All you'd have to do is take the Bitcoin price in current dollars and divide it by what the 1/1/20 dollar is worth now. It's $1.10, so the Bitcoin price of $46,400 is $42181 in 1/20's (again, yet another abbreviation).</p> <p>What would you prefer?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EGarrett"> /u/EGarrett </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tv4n87/how_should_we_price_our_bitcoin_and_crypto/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tv4n87/how_should_we_price_our_bitcoin_and_crypto/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Obviously almost all of us track the value of Bitcoin in US dollars since that's what so many of us have grown up using and think of as "money value," but the dollar is in perilous decline, and looking at our BTC or crypto holdings in terms of dollars is going to get weird very quickly.</p> <p>So how should we peg or track the purchasing power of our BTC and crypto if or when the dollar floats away like the hot air balloon it truly is? While keeping numbers that at least feel like the same scale? A couple possibilities...</p> <p>Liters of Gasoline per Bitcoin: A liter of gasoline in New York is currently $1.02. So if Bitcoin is currently $46,400, it's 45,490 Liters. It seems like both the gasoline price and the Bitcoin price would go up if the dollar collapses. But the downside of course is that gasoline prices are heavily manipulated by politicians and despots. So there's another option...</p> <p>Milliounces of Platinum: This is kinda cool. An ounce of platinum as I write this is $1,005. So if Bitcoin is currently $46,400, it's 46,169 milliounces (mOz's? mP's? because of course we don't have enough acronyms here already). The price of Platinum does fluctuate a bit (it was $1028 dollars at the start of 2021 and about $1200 last month), but mOz's is close to the dollar pre-collapse, and uses a precious metal without tying it to gold since some people may not like that.</p> <p>January 2020 Dollars. We could possibly just peg Bitcoin to the US dollar at a certain time. The dollar today is only about 110% of the January 1st, 2020 dollar, but 1/1/20 seems like a nice even date that was before the pandemic. All you'd have to do is take the Bitcoin price in current dollars and divide it by what the 1/1/20 dollar is worth now. It's $1.10, so the Bitcoin price of $46,400 is $42181 in 1/20's (again, yet another abbreviation).</p> <p>What would you prefer?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/EGarrett"> /u/EGarrett </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tv4n87/how_should_we_price_our_bitcoin_and_crypto/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tv4n87/how_should_we_price_our_bitcoin_and_crypto/">[comments]</a></span>Kind Regards R