Is it possible to determine the value of one side of a bitcoin transaction without using fiat as a reference in that moment? Ex. If someone says I’ll sell you this house for 10 BTC, isn’t the only way to determine if it’s a good trade is by mentally converting the 10 BTC to fiat and then comparing it to the market rate for similar houses?
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Any guidance on this question please @Jeff Booth ? I’ve been wondering about this same thing 🤔
I’m hoping to try to think/price my world in the new system (Bitcoin)
You don’t have to think your selling the house for money, in that case is obvious to make the fiat reference since 99,9% of the houses are sold in fiat. Instead think about selling it for value, if the amount of Bitcoin you receive in change for the house is good for you then the deal is done.
What you are looking for is pricing things in time spent to earn the amount of currency required. A salary basically converts time spent at work to currency. It is up to you to judge if paying a years worth of time in earnings is equal to one house or not. Then, it also depends if you are buying a house or an investment in the shape of a house. For another example, is a hundred hours working at what you are good at worth paying for a washer and a dryer, that saves you time spent on chores for the next few years?
I'm kind of already doing this. At least when I'm thinking about buying something expensive. Art. Vacations. Cars. I don't think of the cost in dollars. I think of it in bitcoin and ask myself what would I rather have? That trip to Hawaii or 0.2 btc?
Every year my stack gets bigger and cost in btc goes down. Eventually that trip will look cheap.