Re:Bitcoin Is Fundamentally Flawed
by smacktoward on Monday April 08, 2013 @04:02PM
(#5514149)
"If on the other hand you just graduated undergrad and had a huge debt and your wage was actually set in bitcoins this would be great for you because the cost of paying off your dept would be from your bitcoin point of view spiraling to zero, as would the cost of everything else. That sounds like a pretty awesome situation to be in."
It would be! Except for the part where that very spiral discourages employers from paying wages in Bitcoin, since they'd make more money just holding on to those Bitcoins and letting the spiral make them money than they ever could paying workers with them. So those Bitcoin-paying jobs never leave the realm of the theoretical.
Re:Bitcoin Is Fundamentally Flawed
by dragonwriter on Monday April 08, 2013 @01:55PM
(#5513317)
> If on the other hand you just graduated undergrad and had a huge debt and your wage was actually set in bitcoins this would be great for you because the cost of paying off your dept would be from your bitcoin point of view spiraling to zero, as would the cost of everything else.
It would be good if your wage was fixed in bitcoins and your debt was set in dollars, but bad if the reverse was true.
I think, given a deflationary currency, it'll be a lot easier to find people willing to lend money with the loan obligation denominated in bitcoins than it is to find people willing to offer employment with a long-term salary base fixed in bitcoins.
Be wary of financial explanations, because in most cases when a business person or economist says its good, they either mean its good for keeping things stable, its good for the elite, or its good for the average person, all of which might not be you. For example, you might see someone on CNBC saying they need to make sure they don't have a disorderly default, but really if you are in a position to take advantage of that temporary disorderly market you could gain from that.