Bitcoin Miners Flock to New York’s Remote Corners, but Get Chilly Reception

Re:Bitcoin Miners Flock to New York’s Remote Corners, but Ge... by darawk on Thursday September 20, 2018 @02:39PM (#18034573)

> The need to pay US taxes in USD is not a software problem it’s a risk mitigation problem. If you accept pesos/whatever for your car and the peso crashed you might owe more in taxes than you where paid and even if you do the transaction today you still need to buy some USD with pesos to put aside for taxes.

True, though that's simple enough to hedge.

> So, if by ‘some’ you mean multiple trillions of dollars of demand every year then ok. But, that’s rather trivializes what a trillion dollars means.

Absolute numbers don't matter, relative ones do. The demand may go to trillions, but that would be down from tens of trillions.

[ Parent | on HN ]

Re:Bitcoin Miners Flock to New York’s Remote Corners, but Ge... by Retric on Thursday September 20, 2018 @06:52PM (#18036037)

Absolute numbers create bounds. USD can’t drop to 1/100th of it’s current value without huge shifts as people would need to pay 100x as many USD in taxes driving up demand for USD. Now, their is slack in the system, but that’s a good thing as it provides price signals and feedback loops.

Even record setting sustained inflation of say 2% per month in the middle of some horrific economic issues would still be a bastion of stability relative to many currency’s throughout history. So, as long as the economy stays steady and the USG does not do something monumentally stupid the US economy really does back the USD.

[ Parent | on HN ]