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That’s fine as long as my job is willing to pay me in a constant amount of bitcoin and everything else I need to buy can be bought with bitcoin. If my salary is

That’s fine as long as my job is willing to pay me in a constant amount of bitcoin and everything else I need to buy can be bought with bitcoin. If my salary is still in dollars, then what I can purchase for a day’s wages will vary hugely.

derefr 5y ago
Presumably, in El Salvador, salaries would be denominated in BTC. That's the only thing that'd make any sense. (And, barring external regulatory force, it's very likely to be what a free job market where employees mostly spend BTC would move to doing.)
- bobthepanda 5y ago
  Imports and exports are not priced in BTC though, in the same way that there aren't really imports or exports priced in gold. Given the massive volatility of BTC it presents a massive opportunity for arbitrage that mostly has downsides for consumers who want stable supplies of goods.
- SamBam 5y ago
  I don't see why they would be denominated in BTC, given that BTC will be legal tender alongside USD, and USD is a much more stable currency. Making it a legal currency won't even force anyone to accept it. As far as I understand, it will simply mean that the government will accept payments in BTC.
  - chii 5y ago
    > the government will accept payments in BTC. The telling thing would be what the gov't pays in (e.g., for tax returns). Do they pay you back in BTC? or fiat?
    - adrianN 5y ago
      Seeing how not being able to print more money when you need it worked out for the government of e.g. Greece, I would be surprised if El Savlador chooses BTC for paying its debts.
      - stickfigure 5y ago
        El Salvador does not have its own currency; it has been using USD since 2001. It can't print money either way.
wolverine876 5y ago
> That’s fine as long as my job is willing to pay me in a constant amount of bitcoin and everything else I need to buy can be bought with bitcoin. It also requires the goods and services you buy to be traded in dollars. If stores buy food, gas, etc. wholesale in dollars, for example, and sells it to you for bitcoin, there's going to be a problem.
nly 5y ago
The real currency we all have is time

derefr 5y ago

Presumably, in El Salvador, salaries would be denominated in BTC. That's the only thing that'd make any sense. (And, barring external regulatory force, it's very likely to be what a free job market where employees mostly spend BTC would move to doing.)

bobthepanda 5y ago
Imports and exports are not priced in BTC though, in the same way that there aren't really imports or exports priced in gold. Given the massive volatility of BTC it presents a massive opportunity for arbitrage that mostly has downsides for consumers who want stable supplies of goods.
SamBam 5y ago
I don't see why they would be denominated in BTC, given that BTC will be legal tender alongside USD, and USD is a much more stable currency. Making it a legal currency won't even force anyone to accept it. As far as I understand, it will simply mean that the government will accept payments in BTC.
- chii 5y ago
  > the government will accept payments in BTC. The telling thing would be what the gov't pays in (e.g., for tax returns). Do they pay you back in BTC? or fiat?
  - adrianN 5y ago
    Seeing how not being able to print more money when you need it worked out for the government of e.g. Greece, I would be surprised if El Savlador chooses BTC for paying its debts.
    - stickfigure 5y ago
      El Salvador does not have its own currency; it has been using USD since 2001. It can't print money either way.

wolverine876 5y ago

> That’s fine as long as my job is willing to pay me in a constant amount of bitcoin and everything else I need to buy can be bought with bitcoin. It also requires the goods and services you buy to be traded in dollars. If stores buy food, gas, etc. wholesale in dollars, for example, and sells it to you for bitcoin, there's going to be a problem.

nly 5y ago

The real currency we all have is time