Post
Topic
Board Economics
Re: If the dollar/fiat was worthless!
by
pooya87
on 08/04/2023, 16:44:19 UTC
Great answer! What kind of system could we create for a smooth transition were everything would be valued by something other then fiat which would not be affected by inflation?
You are again forgetting the difference between value and price. Things are not valued in fiat, they are priced in fiat. Value of all currencies (dollar, euro, yuan, bitcoin, yen, ...) is in their purchasing power.

Lets say bitcoin price is $28000 and you want to buy an iPhone that is $800 so you pay 0.02854BTC. If dollar tanks and loses half of its value today, you can still buy the same iPhone with 0.02854BTC tomorrow even though at that time bitcoin should technically be worth $56,000.
This is the difference between value and price in simple terms. Bitcoin value and the iPhone value remained the same so you paid the same amount of bitcoin for its purchase despite the price of both bitcoin and iPhone going up against dollar.