Separation of "unit of account" and "thing that people move around and hold" would be really interesting to see actually attempted. The crypto economy kinda is there already (most people paid in BTC/ETH don't have salaries *denominated* in BTC/ETC), but not yet wide scale.https://twitter.com/ArthurB/status/1166480461524328453 …
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For cryptos as for fiat currencies, people post prices in what they want to be paid (else mental acct costs), usually what they can most readily spend. Hence dominant MoE is dominant UoA. Prices are posted in BTC only for altcoins and Silk Road goods, AFAIK. Any others?
This argument applies to only small transactions. For large transactions, which are the main action in Bitcoin, mental transaction costs are generally far below the added costs of doing the transaction in local fiat.
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Fair point. What do you mean by large transaction are the main action? Average transaction value for Bitcoin is high (~$100k), but median is just ~$500.https://bitinfocharts.com/comparison/bitcoin-mediantransactionvalue.html …
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It depends on the wealth & income of the people doing the transaction, but for most people on the planet the mental transaction costs of converting a currency on a spreadsheet or even in their heads are a transaction-fee-sized or lower fraction of $500.
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Cool, seems you are thinking about it same way as I. And yeah, $500+ is a lot of money for most of the world. It’d be valuable to have the histogram of BTC transaction size conditional on origin/destination country. May work on it soon!
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I think this has empirical evidence in some countries using the USD in addition to their domestic currency. Groceries are priced in domestic currency, houses in USD.
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