If a T-shirt costs $50 now, that same T-shirt might well cost $150 in a "far future" thanks to Mr Bernanke and his Printing Press (tm). (Though this isn't a certainty, merely a likelihood.)
Most bitcoin-accepting retailers still peg their prices in fiat (thus the BTC price to pay will fluctuate with the exchange rate) but in future we may well see more sellers setting prices purely in BTC terms, e.g. selling a T-shirt for BTC2 (or in a "far future" scenario, maybe BTC0,002!
) regardless of the BTC/$ exchange rate, just like a train ride between, say, Zürich and Geneva, set in Swiss francs, will cost any foreign visitor (assuming not in possession of any railcard) an arm and a leg, almost regardless of the exchange rate. (In fact, that applies to almost everything in Switzerland: very expensive, end of. )
Most bitcoin-accepting retailers still peg their prices in fiat (thus the BTC price to pay will fluctuate with the exchange rate) but in future we may well see more sellers setting prices purely in BTC terms, e.g. selling a T-shirt for BTC2 (or in a "far future" scenario, maybe BTC0,002!
) regardless of the BTC/$ exchange rate, just like a train ride between, say, Zürich and Geneva, set in Swiss francs, will cost any foreign visitor (assuming not in possession of any railcard) an arm and a leg, almost regardless of the exchange rate. (In fact, that applies to almost everything in Switzerland: very expensive, end of. )I dare to say that future is pretty far away. The T-shirt being sold at BTC2 and $50 in your example would be sold for a different amount of BTC if its $ market price would be $150, according to what $150 would mean in BTC by that time. Unless, the costs involved in producing that T-shirt would remain the same in BTC, which would imply paying everything with BTC, including salaries
But that would mean the end of the $, wouldn't it?