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Imagine having your salary drop 70% year over year because interest rates are no longer zero.
by henning 4y ago
Imagine having your salary drop 70% year over year because interest rates are no longer zero.
- wonderwonder 4y agoI would assume their salary is consistent, and denominated in USD. The payment is just made in x USD of BTC. Its up to the recipient to then exchange that BTC for their local currency.
- danuker 4y agoNobody is being bound to hold BTC once the payment is made. Nor needs the salary amount be contractually specified in BTC.
- tgsovlerkhgsel 4y agoThere are currencies that are similarly unstable (I was unable to get actual rates for UAH, but the official/pegged rate dropped 20% suddenly mid-2022), but unless the salary is denominated in BTC, the only thing that matters is short-term fluctuations between the point where the amount is converted to BTC and the point where the recipient converts it to local currency. The advantage of BTC here is the decoupling of the sender and recipient exchanges: Instead of having to find one company that handles the whole transfer end to end (i.e. is active in both the sender's country and the recipient's country), it shifts the problem to finding one trustworthy exchange usable by the sender and another trustworthy exchange usable by the recipient. Unlike banks or classic money transmitters, there is no need for trust/coordination between the two exchanges.