What is a Bitcoin meter, and how does Bitcoin measurement play into concerns about volatility in crypto prices? Cryptocurrencies like Bitcoin and Meter have very different values: we know this because Bitcoin measurement is unpredictable. Unlike Bitcoin, Meter’s measurement is stable and fixed to the physical world.
Measuring Bitcoin is tough because you have to measure volatility: this is why measurement is difficult. In a survey of 1,000 consumers, over 90% worry about the measurement of volatility in crypto coins like Bitcoin, and 60% of adopters say bit is the most inconvenient part of owning cryptocurrencies. The current measure
of exchange rate volatility between crypto like Bitcoin and real-world money
makes it unlikely that people will use crypto for transactions.
To address this problem with Bitcoin, Meter is making a steel ruler to measure
worth. Instead of price derived from the cost of producing additional units, the
Meter measurement of price comes from something all virtual world residents
know intimately: electricity. By using energy as a unit of account, the length of
unit measurement will not change, though the quantity will change accordingly
with the market supply and demand for tokens. This method of measuring value
and price provides a stable unit of account for the crypto economy.
The inherent value measurement Bitcoin, Meter and other tokens command is
simple and comes from basic economics: if something is both rare (scarce) and
useful (utility) it must have value and demand a specific price, with all other
things being equal.
Like gold, Bitcoin and Meter are scarce: their supplies are limited. They also have
utility: they’re fast, decentralized, and can be used worldwide.
Here is the caveat for measuring Bitcoin: although it has a value, its price varies
wildly. We measure the price of a currency by the market in which it is traded. Put
simply, it is the ongoing interaction between buyers and sellers trading with each
other that functions as the measurement of specific price.
We must consider that crypto miners, buyers and sellers are always thinking
about the future value measurement of a coin. This behavior is obvious in miners,
who receive Bitcoin rewards for recording transactions: the more they can reap,
the more they will work, and vice versa. This changes the price of the coin further.
Essentially, using Bitcoin measurement to gauge nominal value is like using a ruler
made of rubber. It stretches or contracts based on changes in supply and demand,
which makes it impossible to use as a reliable unit of measure. From November
2018 to January 2019, the measure of Bitcoin’s price dropped from $6.5K to
$3.3K, as miners and consumers alike recognize the diminishing reward from
Meter exists as a response to the extremely volatile virtual-to-physical exchange
rates that crypto adopters have had to face while using Bitcoin. We hope that the
82% of those who would someday like to own crypto can see Meter as a viable,
intelligent option to enter the world of decentralized finance.
To learn more about Meter’s unique consensus that drives its measure of price,
read What is Proof of Value Consensus?