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Even if you get paid in bitcoin, if the real value of bitcoin increases, it's unlikely that you'll maintain the same nominal wage. Your real output is relative
by jmharvey 14y ago
Even if you get paid in bitcoin, if the real value of bitcoin increases, it's unlikely that you'll maintain the same nominal wage. Your real output is relatively constant, so your real wage (whether it's paid by an employer or is the profit from a business) can't dramatically rise every time the currency fluctuates.
So even if you're paid in BTC, deflation makes it very difficult to repay a loan.
- viraptor 14y agoWhat do you mean by "real wage"? I think you're still taking the wage relative to a dolar in this case. The point is that if you get paid in X, you get paid in X. If X has any traction, your employer also has income in X, so relation of X to other currencies is not that much relevant to your salary or debts if they're both in X. Sure - 100x change over a year is going to be a problem for other reasons, but have a look at GBP/EUR exchange rate. It changed between 1,28 and 1,16 over the last couple of months. Nobody corrected my salary by 10% just because of this.
- dragontamer 14y agoBut companies such as Nintendo post losses in Revenue because of USD / Yen fluctuations. When all USD transactions are hurt by 7% because of a stronger Yen, Nintendo's business in America is worth 7% less all of a sudden. True, wages in Nintendo probably didn't change, but their American Investments have been damaged by the stronger Yen.