A Twitter user I respect stated "Bitcoin is not volatile." He said it is stable, constant, predictable, and transparent. It is "a ruler for measuring the value of all that is."
Okay, he's using it as his unit of account, how he prices the world. But just because someone uses anything as their unit of account does not mean that thing is not volatile in itself.
Yes, Bitcoin is a commodity with a disinflationary fixed issuance schedule. However, it can still be volatile. It has been.
Look at a basic good that is not becoming significantly better in quality, there is no decreased supply of it, and there is no increased demand for it. Like standard postage stamps (not collectibles).
Now use bitcoin as your unit of account. How many stamps can you buy with 1M sats at a halving, a top, and a bottom? It varies considerably. Have stamps gotten better, been in less supply, or been in more demand? Obviously not. In the pairing of BTC/stamps, it was the BTC that was volatile.
This seems pretty obvious to me. Was I right or wrong? Why?
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