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Nothing better than receiving your salary in a token with huge minute-to-minute volatility.
by egdod 7y ago
Nothing better than receiving your salary in a token with huge minute-to-minute volatility.
- greenhatman 7y agoGreat for those of us who don't already have enough stress in our lives yet.
- lawn 7y agoSure beats not receiving a salary at all.
- a13n 7y agoCrypto replaces a major painpoint (chargeback, getting 0% of your money) with a minor painpoint (volatility, losing or gaining <10% of your money). There are other cryptocurrencies (eg Tether) that follow USD (eg 1 Tether is almost always equal to $1.00 USD), to avoid issues with volatility. I guess another issue is that you'd have to pay taxes on any gains/losses between receiving your crypto and cashing it in for USD, and that would be pretty annoying to calculate manually. I'm not the biggest fan of crypto but I think it actually solves this problem pretty well. There are probably other solutions too though (like only accept debit cards / payment methods that can't be charged back).
- Qwertystop 7y ago> There are other cryptocurrencies (eg Tether) that follow USD (eg 1 Tether is almost always equal to $1.00 USD), to avoid issues with volatility. One of us is behind the times on Tether; last I heard they were in pretty significant legal/financial trouble re: money laundering, not actually having most of the backing dollars they claimed to, and possibly market manipulation.
- andrewla 7y agoThere have been various stories floating about litigation, solvency, and market manipulation in tether. So far, the market [1] remains unconvinced: tether trades pretty close to parity (sometimes even at a premium; liquidity preferences being what they are), and prices between tether-based exchange and USD-based exchanges are also pretty tight. So for the moment accepting payment in tether USD is entirely feasible. [1] https://trade.kraken.com/markets/kraken/usdt/usd https://trade.kraken.com/markets/kraken/usdt/usd
- a13n 7y ago"All Tether tokens are fully backed by reserves." https://www.coindesk.com/tether-says-its-stablecoin-is-fully-backed-again https://www.coindesk.com/tether-says-its-stablecoin-is-fully... Tether (USDT) $1.00 USD https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
- mrmuagi 7y agoWhat's the turn around time between receiving crypto currency and getting that into e.g. USD in a bank for you? As long as that is short, volatility is minimized. I think the volatility issue is a major pain-point to people though. As long as you keep your money liquid in cryptocurrency, isn't it essentially holding stock (albeit driven by BTC mining and transactions) in terms of capital gains and losses? But if you use stock, I believe you are required to hold it for periods by the SEC (don't quote me, but, blah blah Holding Period?), so maybe crypto wins in this regard anyway...
- echelon 7y agoWould there be a way to peg valuation to clock periods? Or a certain number of transaction counts? (Ie., between the next 1000 transactions the value must be exactly 'X'.) It would also be interesting for the protocol to gain the ability for arbitrage. Or even negotiate whom the arbitrating party would be.
- smileysteve 7y agoIf you want less liquidity, more extreme volatility, and less buyin, sure. But what you just described (absent a central bank; like Tether) is much how dictators have tried to stabilize devaluing currencies. Derivatives/forex and black markets would develop quickly in any major currency that did this. AKA, nobody would logically accept your transaction until the time period or count ends, otherwise, there is a significant likelihood of them being wrong.
- bananamerica 7y agoI lived through hyperinflation. Sometimes products were updated mid day. Comics used codes that referred to a table because it was not possible to change the price on the cover.
- big_chungus 7y agoGiving btc a more regular market, one outside of gray- to black-market activities and speculation), would almost certainly help stabilize the value.