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It should be clear by now that the BTC is backed by USD.

antibasilisk 4y ago
It's moreso the case that's the majority of usage is as a middle-man for USD, when you buy something people will usually say '$13 in BTC' as opposed to '14000 sats' for example
- frankreyes 4y ago
  That's exactly what happens with the Argentina peso. You pay in pesos for products expressed in USD. And the backing of the peso has always been the USD.
- codetrotter 4y ago
  Yeah, it’s likewise with most companies too probably, if they pay the salary in BTC. The salary will still probably be like “$130k USD per year, but we send it to you in Bitcoin” and whatever the exchange rate happens to be at the day of each pay check determines how much Bitcoin they send you. And in some ways it’s good and in some ways it’s bad. It’s good because at the moment BTC is so volatile. It’d kind of suck if I agreed to some amount of BTC per year in salary and one month I couldn’t even afford rent just because the market rate for BTC was so bad. But I really do hope that one day we can measure so many things in BTC directly, that I could have my pay check in Bitcoin and pay my rent and my food in Bitcoin etc, without regards for what the BTC to USD value is.
  - antibasilisk 4y ago
    Is BTC really that volatile or does the USD have its own volatility we should also factor in? Considering how every currency has been massively devalued over the past 3 years, and considering BTC is less volatile than the S&P 500, I'd say the USD itself contributes significantly to the perceived volatility.
    - codetrotter 4y ago
      It’s hard to tell for sure. But it is definitely the case that today it is safe for me to receive my pay check in USD, as it allows me to pay my rent and buy my groceries and buy a little bit of BTC for a portion of it. Whereas, receiving my pay in a fixed amount of BTC would be a very big gamble today. Maybe if I move to El Salvador, it could be different :thinking_face:

It's moreso the case that's the majority of usage is as a middle-man for USD, when you buy something people will usually say '$13 in BTC' as opposed to '14000 sats' for example

frankreyes 4y ago
That's exactly what happens with the Argentina peso. You pay in pesos for products expressed in USD. And the backing of the peso has always been the USD.
codetrotter 4y ago
Yeah, it’s likewise with most companies too probably, if they pay the salary in BTC. The salary will still probably be like “$130k USD per year, but we send it to you in Bitcoin” and whatever the exchange rate happens to be at the day of each pay check determines how much Bitcoin they send you. And in some ways it’s good and in some ways it’s bad. It’s good because at the moment BTC is so volatile. It’d kind of suck if I agreed to some amount of BTC per year in salary and one month I couldn’t even afford rent just because the market rate for BTC was so bad. But I really do hope that one day we can measure so many things in BTC directly, that I could have my pay check in Bitcoin and pay my rent and my food in Bitcoin etc, without regards for what the BTC to USD value is.
- antibasilisk 4y ago
  Is BTC really that volatile or does the USD have its own volatility we should also factor in? Considering how every currency has been massively devalued over the past 3 years, and considering BTC is less volatile than the S&P 500, I'd say the USD itself contributes significantly to the perceived volatility.
  - codetrotter 4y ago
    It’s hard to tell for sure. But it is definitely the case that today it is safe for me to receive my pay check in USD, as it allows me to pay my rent and buy my groceries and buy a little bit of BTC for a portion of it. Whereas, receiving my pay in a fixed amount of BTC would be a very big gamble today. Maybe if I move to El Salvador, it could be different :thinking_face: