"How to quantify the actual value of a currency ?"

was a question emerging during the design
of a currency for an economy of The-One-Law.

This question prompts an interesting observation about BCH:

Many of us can clearly see the market valuation of BCH
is being manipulated beyond any credibility by various entities.

Recognizing that exchange "market valuation" is fraudulent,
how can we quantify an actual value of 1.0 BCH
in terms that moneylenders cannot subvert ?

Ultimately, this question further resolves itself to:

What is the minimum 'actual value' of 1.0 BCH ?

Crypto-"economists" will probably ROLFLMAO into a coma,
but this question actually has a very real answer.

There is a finite lowest value and,
for as long as we can keep some kind of viable internet,
BCH can retain a non-zero value.

Disconnecting from the dystopia of moneylenders
is an absolute requirement for the success of any currency.

This is why some countries impose currency protectionism rules.

And this is why (and how) BCH value has been tossed overboard
with the financial equivalent of 'boat anchor footwear'.

BCH tries to compete in markets designed and operated by thugs.

To actually exist at its proper value
BCH must disconnect from fiat exchange markets.

In theory at least, such market valuations
can be ignored for the sake of 'value discovery'.

The term is 'value discovery', not 'price discovery',
because the intention is not to value BCH in terms of fiat "price".

Valuing BCH in fiat at this moment in history is daft.

For the purpose of this article we will ignore
whatever market valuations and fiat valuations exist,
treating such as the hallucinogenic phantasms they actually are.

[ Further - such a disconnect can (and already has been)
achieved by other currencies - that do not operate as 'currencies'.
This can be achieved by several methods, to discuss later.]

How can we quantify the 'value' of a currency ?

Historically, there are many ways
people have tried to assign some fixed 'value' to currencies.

Weight and volumes of materials and physical 'things'
have powered markets for millennia.

That substances can be measured, quantified, and verified
makes a simple method to assign credible value.

Eventually,
many other metrics have been proposed, attempted,
and considered.

Power and Energy (two different things - see watt and joule)
and many other efforts such as real estate, artworks, livestock,
slaves, and a list of other dimensions so vast
there is no space on this webpage to describe.

'Mostly', such valuations are socially agnostic:

they do not discount nationality, skin color, gender,
and other random features the looming threats of CBDCs propose.

But physical valuations all have one seriously inevitable flaw:
they can, without consent,
be confiscated, destroyed, or simply 'de-linked' from the currency.

So what does BCH provide that has absolute value ?

BCH offers not much of value aside from the fact
that it is almost perfectly p2p, has a (fixed?) 21m coin limit,
and can (occasionally?) accommodate high transaction rates.

Contrast that with the horrifying confiscation risk
hidden behind Tether and almost any other token/coin
you can point at on exchanges.

Aside from Monero (and, perhaps, what else?),
nothing else competes as purely p2p .

The 21m coin limit and TX rate are the only numerical handles
by which we can value BCH.

So what makes 21million a magic valuation number ?

Nothing at all.

If one person HODLed all the remaining of 21m BCH
(in whatever wallets)
then BCH would have absolutely ZERO value.

BCH only has value in a market,
and only if the marketplace has an actual population.

It has virtually nil value if that population
is merely a village in a jungle backwater somewhere.

The population of the market must have a real economy,
involving ordinary economic usage - not 'rotting in a bank vault'.

This means daily/weekly/monthly/yearly expenditures.

• Food

• Clothing

• Rent/housing/etc

• Transport

• business/vendors/trades

• Power/Water/commodities

• Jobs-Work-Staffing-employment

Without usage, the value trends toward ZERO.

If crypto is used as a store of value, it has none.

We see that in the markets right now:

The graph shows the (daily) USD price of BCH
against the amount of USD value transacted by BCH.
(The USD value of the sum of native units transferred between distinct addresses that interval removing noise and certain artifacts.)

The correlation between price and value transacted is obvious.

It must be used.

It must be used daily.

It must be used by a population of some size.

There must be enough daily transactions
by enough of the population
to support value discovery.

Interruption,

Wait one moment right here:

I just stumbled upon someone who said

this is a terrible idea.

• - - - -

• [This reads like a dare.]

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From:

https://www.reddit.com/r/AskEconomics/comments/eiv2v3/could_a_commodity_backed_currency_that_was_tied/

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(pop)

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Mate, Just Hold My Beer !...

I just realized how we can persistently

loft the entire marketcap of BCH (exclusively!)

with a single (basket) metric,
a metric that reacts inversely, organically, autonomously,
to oppose BCH market suppression.

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The question is - dare we ?

I will await your answers.

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My patience is very thin,

............ I am still waiting....

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