When Will We Start Pricing Things in Crypto?
When will we start pricing things in crypto?
We keep seeing the crypto world grow year after year, and more and more people are using it to pay for stuff (too few still though).
But, invariably, almost everything is still priced in USD or other fiat currency.
I price things, and pay for them, in crypto amounts quite often. I just did a couple weeks ago. But I’m an outlier, and most of what I buy and charge for is still in USD amounts.
How do we bridge the gap and get a crypto asset actually used as a unit of account for pricing goods and services?
Here’s what we need to change.
Crypto Can’t Be So Volatile
Really simply, it doesn’t make sense to price things in an asset whose value (purchasing power) could literally be double, or half, the very next week.
How do we get here? By focusing on utilitarian, not speculative, crypto use cases.
If you’re just a speculator, you want to pay a different price for an asset as everyone else, either for buying or selling. If a user, you want a fair price, even if it’s the same as everyone else.
The more we have people buying and selling for around the same price, the harder it will be for speculators to move the price, and it will stabilize.
We Need to Have (Especially Earn) Mostly Crypto
If you have $100, you’ll want to know how much of that you need to pay for a certain thing. If 1 Bitcoin, you’ll want that priced in Bitcoin denominations.
People just have way too damn much fiat, with crypto as a side investment. If they had so much crypto that they had no choice but to spend it, they’d want to price things in it.
Also, earning is huge. If you earn 200 Dash per month, you’ll want to know if your mortgage is 100, your groceries are 12, your coffee is 0.2 per day, etc.
Every time I’ve been drawn to pay in fixed-denomination crypto amounts, it’s been because I had a certain crypto-denominated budget.
We Need a Market for Crypto-Native Assets
This is the big one, and what I think will make the difference. We need to be paying for digital goods and services on blockchains.
Fees to use blockchains aren’t priced in fiat, they’re priced in the native crypto units. Just like any commodity like oil, the amounts you need don’t depend necessarily on fiat conversion prices.
If you remember the NFT boom of last cycle, NFTs were priced in ETH (or whatever other native token). Premium Dash usernames are 0.2 Dash right now. And so on.
As crypto grows and people find actual utility in the blockchains, markets for digital goods and services will form, priced in the native commodities that power them. When this is a significant enough part of the economy, people will seek to be paid in these units and price other goods and services in them.
To summarize, we need to:
- End crypto volatility
- Own (and earn) mostly crypto
- Pay for blockchain-native goods and services
To summarize even further:
We need to use crypto as much as possible.
Thank you for coming to my corn talk.
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