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The short answer is: No. The long answer: With some financial engineering it might be a good idea to pay outside contractors, but only with tight contracts. Yo
by bayesianhorse 14y ago
The short answer is: No.
The long answer: With some financial engineering it might be a good idea to pay outside contractors, but only with tight contracts. You need a portfolio of bitcoins and preferably some derivatives to hedge the risk inherent in that. You need to be able to buy bitcoin in forward.
You need to factor in the time it takes for the recipient to convert bitcoin to something usable in his currency (at least 7-14days) and add a premium to the payment covering the risk he is taking on. You can omit the latter but then the recipient is going to detract that premium from the price of the contract...
- bayesianhorse 14y agoI forgot to add that I would only consider this option when your only other means of payment exceed the costs of financial engineering involved in bitcoin payment... I haven't calculated it yet, but I would estimate the cost to be between 3 and 10%, and certainly higher when mistakes are made.
- jebeng 14y agoIn this case though we would only pay in bitcoin when specifically requested by the contractor. So the contractor would bear all the risks associated with that.