Now if we all want to make Bitcoin the standard. Right now sure you can use Bitcoin to buy goods and services with. However all goods and services value and price are based by some sort of Fiat.
How do we go about to determine Good and Services value entirely on Bitcoin?
Okay, and if fiat money suddenly disappeared, would it be possible to obtain everything you want for free? I highly doubt it, which is why I think it is not money that gives value to goods and services, but the intrinsic characteristics of goods and services themselves. But that is not all. No matter what qualities a particular thing possesses, it won't have any real value unless some people recognize its value. Each thing will have a different value. People, when comparing two things of different values, will use their reason to assess the proportion: how many things of one kind they would give for things of another kind. Given that the number of goods and services that need to be evaluated against each other is enormously high, and given that the number of people in the society who are trying to measure value is very high, it is logically justified for people to come up with something with which to measure the interpersonal value of different things. In other words, money. Money doesn't have a price, its value is always expressed through different commodities. So, the purchasing power of Bitcoin is determined through the number of goods and services available, which in turn is determined by the laws of supply and demand: the rarer a certain good, the higher price in terms of bitcoin it will have. In the bitcoin economy, prices will fluctuate significantly, they will never be stable because the amount of available goods and services also fluctuates. If you notice that the price of a particular good has fallen, that means that too many goods of this kind are available on the market, that is, the supply of it is higher than the demand for it.