So how much are bits in USD?

[cider float 2,535]

If you convert bits to US dollars how much are they worth?

[Daring_Do 552]

5North American informal dated A unit of 12 1/2 cents (used only in even multiples).

EXAMPLE SENTENCES

• A lad with tousled fair hair came out of the livery, and Ben handed over the horse and two bits for feed and a rub down.
• Abbey skipped up to the house, a silver bit and four coppers jingling in her apron pocket.
• Jim paid the four bits and ate in the dining room.

 

 

 

Also: http://en.wikipedia.org/wiki/Bit_(money)

Edited May 22, 2015 by Knight Dash

[cider float 2,535]

 

I was talking about bits in Equestria.

[Knight Hadron 372]

@, Woohoo! Another Knight on this website! Greetings! Where dost thou come from? From whom didst thou get thy training?

[Daring_Do 552]

I'm one of Princess Twilight's Knights of the Round Stable. I'm her Lancelot, obviously. Next week we're going on a quest for the Holy Sippy Cup.

 

 

@cidershield: I reckon bits in MLP, at least originally, were supposed to be those bits. I mean, I remember in the cider squeezy episode "cents" are mentioned...

[KrazyDashie 1,846]

I'm one of Princess Twilight's Knights of the Round Stable. I'm her Lancelot, obviously. Next week we're going on a quest for the Holy Sippy Cup.

 

 

@cidershield: I reckon bits in MLP, at least originally, were supposed to be those bits. I mean, I remember in the cider squeezy episode "cents" are mentioned...

well... all i know is that equestria could have bits and cents. like dollars and cents. 

[Daring_Do 552]

Oops, accidentally brohoofed your post, KrazyDashie - Meant to click Quote. Sorry.

 

Ahem, anyway. Is there anything in the show that hints that bits are their "full" unit of currency, or was that just an assumption on our parts?

[ARagY 1,152]

I don't think it's consistent, but let's work with what we have.

 

So Rainbow Dash spent 2 bits for cider, yeah? How much do you think cider is worth? Drink-for-drink, it's about $2. Same that Rainbow Dash spent. But if this was the rate, then that means Fluttershy was charged $10 for a single cherry. I don't think any business is insane enough to charge that, because unless your willingness to pay is through the roof, it's not happening. 

 

But we also have silver bits as well as gold bits, so perhaps they're worth less. Nevertheless, Fluttershy put a gold bit down, and was told it was 10. so we can assume it's 10 of the gold. Gold is naturally worth more than silver, so we've already kind of eliminated them from the equation. 10 cents for a cherry is more down-to-earth. But then that means Rainbow Dash paid 2 cents for cider. Not the cheapest stuff around. Even if it is your friend who's giving it to you. If the cost of production was a $10 a barrel, and there are..say, 50 drinks per barrel. That's only $1 made up. This is why I don't think it's very consistent. At times, it seems to represent a value close to USD, at other times, it's closer to the Yen or Rouble, and even then, it's not very plausible if you measure it across the series.

Edited May 22, 2015 by ARagY

[OptimisticNeighsayer 471]

But we also have silver bits as well as gold bits, so perhaps they're worth less. Nevertheless, Fluttershy put a gold bit down, and was told it was 10. so we can assume it's 10 of the gold. Gold is naturally worth more than silver, so we've already kind of eliminated them from the equation. 10 cents for a cherry is more down-to-earth. But then that means Rainbow Dash paid 2 cents for cider. Not the cheapest stuff around. Even if it is your friend who's giving it to you. If the cost of production was a $10 a barrel, and there are..say, 50 drinks per barrel. That's only $1 made up. This is why I don't think it's very consistent. At times, it seems to represent a value close to USD, at other times, it's closer to the Yen or Rouble, and even then, it's not very plausible if you measure it across the series.

 

How can we tell what any of the materials the bits are made of?  The American penny, for instance, looks like it's all copper, but it's really predominantly zinc.  And of course, brass and pyrite can look like gold.  I don't remember any episode explicitly mention what the bits are made of.

 

Also, in "Putting Your Hoof Down", Fluttershy was being manipulated into paying a much higher price than the cherry was presumably worth (especially when we see later that another customer got the cherry for a lower price, namely, two bits), so it is unfair to compare prices in that case, at least if you're trying to establish relative prices to a glass of cider.  (Of course, taking your analysis, this actually means that a cherry is worth the same as a glass of cider, which still seems quite odd, but certainly less ludicrous.)

 

Also, since prices for things seem to be for the most part bargained rather than fixed (if "Putting Your Hoof Down" is the norm; after all, only AJ and her family are the only ponies that unambiguously charge fixed prices for things), the culture might in fact be less concerned about the absolute value of bits than say, we might be.  (Furthermore, the prices of things are not universally equivalent from country to country, one needs only look at the Big Mac Index, and that doesn't even account for purchasing power.) 

 

I don't disagree that it's inconsistent (because I would think that ponies are at least somewhat rational when it comes to money), but I think some assumptions about Equestrian culture, as well as supply and demand, need to be examined before we come to any certain conclusions about how much bits are worth or is far too inconsistent for realism.  Another reason it's sad that Equestria isn't a real country  .

Edited May 22, 2015 by OptimisticNeighsayer

[The Awesome One 1,314]

It seems like one bit is one US dollar or one Canadian Dollar.

[SpiderDiscord 145]

Someone on DA has done calculations on this regarding apple prices

http://thing07.deviantart.com/art/Bits-Dollars-Conversion-Theory-198512195

 

With supply and demand roughly assumed
I would say that the ratio would be close to the (cheap apples) calculation

 

That little town has all of apple acres, that's a large supply, not to mention in their universe, apples seem to regrow at a much higher rate.

Demand must be relatively high as well, I mean every single pony in town wanted cider

I am not sure how often the go out on the market to sell barrels of apples, but it seems frequent

 

Cherries seem to be in shorter supply judging by how fast the stand sold out vs the others. so it's relative price would higher than apples in their universe.

 

(feeling sick, so sorry for accidentally submitting this prematurely then taking a while to add the rest)

Edited May 22, 2015 by SpiderDiscord

[Daring_Do 552]

Something worth considering. MLP's setting seems kinda Rockwellian to me - Prices of things might be based on "everything was cheaper back then" instead of on present day values.

 

(All this may be why I assume bits were meant to be the real thing (plus a horsepun) instead of an invented currency.)

[colt_following 169]

I get the impression it floats around $0.75 USD. I dunno- 1$ seems like a lot per bit.

[sweetolebob18 724]

Modern economics, the value of a currency is based on a "market basket" of items the average consumer buys (the Consumer Price Index).  Ponies have such a different "market basket" it is difficult to set exact equivalents.  For instance, you probably don't buy hay or horseshoes.  Ponies don't buy phones (& most other electronic items) or meat,  clothes are a luxury item, jewels are cheap enough Spike eats the ones not being used as rhinestones, etc.

 

That being said, based on what they do show ponies paying I'd say somewhere around 1 bit = $1.

[Knight Hadron 372]

Modern economics, the value of a currency is based on a "market basket" of items the average consumer buys (the Consumer Price Index).  Ponies have such a different "market basket" it is difficult to set exact equivalents.  For instance, you probably don't buy hay or horseshoes.  Ponies don't buy phones (& most other electronic items) or meat,  clothes are a luxury item, jewels are cheap enough Spike eats the ones not being used as rhinestones, etc.

Isn't the CPI an indicator of economic health and the value of a currency, as opposed to the value of the currency being based off of the CPI? All the CPI is, is a measurement.

[sweetolebob18 724]

Well, yes.  I was thinking of its use in measuring inflation, or when people say some old price was the equivalent of such & such a price in today's $.  The exchange rate is set by the market, what people buying & selling currency pay for it.  Obviously, that is impossible, so I was just using the CPI as best indicator available