The cost of a cow in ancient Mesopotamia and modern Europe is almost the same when compared in the price of gold; i.e. 5 grams of gold; as gold prices has remained the same in relation to commodities across time and space in the known history of mankind.
However, the problem with fiat currencies is that its circulation goes on increasing, thanks to our central bankers, so does the price of commodities, products and services. Add to that the purchasing power parity of each nation and the price becomes way too incomprehensible for people around the world to figure out at what price is the guy in the other country buying the same stuff that is sold in the local market.
To give you an example, 1 kg of Kelloggs Cornflakes in India retails at Rs. 400, wheres the same one in the US has a price tag of Rs. 1600/- in rupee terms. A massive four fold increase. If an American were to import his breakfast cereal from halfway across to globe to his table, he would still make a significant saving of over 50 percent.
In a Bitcoinized world, it would not be unthinkable that online shoppers would restrict their purchase only within the borders. Not that it's not happening with fiat currency and high shipping charges; but these are restricted to items of considerable value. With a nearly zero cost of transaction, the only consideration would be the shipping charges. And if any product or service can be found cheaper and better and faster (hopefully), then it makes no sense to buy the same stuff locally or nationally.
This opens up tremendous opportunities both to online sellers and consumers.
Every online seller that opens his own ecommerce shop would have a ready market of 8 billion people.
The Notional Gold Price Standard
To make it possible to have the price of a product denominated to that of gold, since gold prices are the same everywhere across the globe, the author proposes the creation of something of a notional currency called 'Goldy' or 'Goldies' (plural); which is nothing but 1/1000th of the price of 1 gram of gold or 1 milligram of gold price.
So if 1 gram of gold in India as on date (let's fix any one date, let's say the year '2022' for eternal referencing) is Rs. 5000/- (Five Thousand Rupees Only) then the price of a 1 Goldy would be 5 in rupee terms and USD 0.05 in dollar terms
So, to take the above example, the price of a 1 kg pack of Kelloggs Corn Flakes would be G 80 ('G' being the currency symbol of Goldy) in India and G 400 in the USA.
With this as a contrast, one could readily find the purchasing power parity between nations and best way to serve underserved or uncompetitive markets.
For sellers, pricing their produces in Goldy would readily help global customers make a globaal reference point.
For consumers, as the prices of crypto assets sky rocket or nose dive, they get a global reference point of the price of a product or a service.
Secondly, if the price of 1 BTC or any crypto hits USD 1 million, it would make the consumers pick out the sellers who have upped their prices arbitrarily. For e.g. a pack of bread should cost the same in gold terms, be it 2000 years ago or 5000 years hence. If any seller increases its bread prices by more than 50-60% (unless it is an exotic bread) just because the crypto market is in an upswing, the consumers would immediately get a feel of the extra high price charged when denominated in Goldy. Even if the price on the product is not mentioned in Goldy buy in fiat currency, the payment software would readily show the price in Goldy.
For salaried people or daily wage earners, Goldy would stabilize the wage market as an officer in a Bank would be paid the same in terms of gold in India in the 70's as in 2022. This would also help employees take a ready stock of jobs available across the globe and the costs associated with living in any part of the world if the prices were to denominated in Goldy.
In a Bitcoinized world, the prices of every commodity, products and services would be denominated in Goldy so that there is less chance of tinkering in the prices and helping countries trade with each other seamlessly, making borders irrelevant.
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