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As an employee I would rather have the lever in renegotiations. I also would like to be able to save without having to put my economic output at risk. If you d

As an employee I would rather have the lever in renegotiations. I also would like to be able to save without having to put my economic output at risk. If you don't invest your bitcoin in productive assets you will be behind peers who do that, however they carry a risk. Today you carry risk if you don't invest your savings. However with low-income you can't, as you need emergency funds.

Nursie 6y ago
What lever? As an employee, in a growing economy denominated in bitcoin, you would see your pay drop frequently as the money supply gets stretched. There's no reason at all to think BTC-denominated salaries would be able to stay constant as the value of the money rises. > I also would like to be able to save without having to put my economic output at risk. That's not the same thing, a fixed proportion of the money supply does not guarantee that, nor is it a necessary precondition. Further, this is not in the interest of wider society - work today should be valued more than work yesterday. If you want to grow your money, you make it work. This is just a rehash of the problems with the gold standard now. But worse.
- ballofrubber 6y ago
  > As an employee, in a growing economy denominated in bitcoin, you would see your pay drop frequently as the money supply gets stretched. There's no reason at all to think BTC-denominated salaries would be able to stay constant as the value of the money rises. Assuming the world productivity is denominated in 21 million bitcoin, if world productivity grows by 3% per year, my salary of 1 bitcoin gets more purchasing power. This is where you get a lever with your employer, he needs you to earn less, you don't have to negotiate to earn more (same applies to minimum wage, it needs to be adjusted upwards in a inflationary monetary system) Every money is inherently more valuable yesterday than today, as you can divest it. I would argue that it is very much in the interest of the wider society to have their savings not inflated. The best way to make your money work will always be to invest it in productivity, be it in educating yourself or investing it in companies. This investments need to be a lot more smarter and more sustainable than those of today, as the base money is not worth less every year. I think wasteful spending is a property of an inflationary money, where smart spending would be a required property in a non-inflationary money.
  - Nursie 6y ago
    There's no lever there. In a bitcoin economy there's no chance your contract gives you a fixed salary in the first place, it would be tied to some measure of inflation. Like I said, most of the rest is just a rehash of gold standard stuff.
    - ballofrubber 6y ago
      > Like I said, most of the rest is just a rehash of gold standard stuff. Exactly, however bitcoin is infinitely better money than gold and makes the "gold standard" viable. Fortunately the gold standard has a lot of proponents globally, some of whom started embracing bitcoin. I just hope that the experiment bitcoin keeps on going and I'm guessing we will see some form of resolution, maybe even in this decade. There is a lot to learn still.
      - Nursie 6y ago
        Ah, I see, you haven't figured out why the gold standard was terrible either.
        ballofrubber 6y ago
        Tbh. my very basic knowledge comes from strongly opinionated austrian economics literature, which tends to confirm my bias, and from [0], which at least gives me some data points to refer to. Do you mind giving me some of your arguments why it's terrible? [0] https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/
        Nursie 6y ago
        I mean, for a start 'Austrian' economics is a joke. There's plenty of literature out there about the end of gold standards in various countries. The upshot of it is that economies get warped by constrained currency supply and those who already have tend to get more, over those who produce or invest.

Nursie 6y ago

What lever? As an employee, in a growing economy denominated in bitcoin, you would see your pay drop frequently as the money supply gets stretched. There's no reason at all to think BTC-denominated salaries would be able to stay constant as the value of the money rises. > I also would like to be able to save without having to put my economic output at risk. That's not the same thing, a fixed proportion of the money supply does not guarantee that, nor is it a necessary precondition. Further, this is not in the interest of wider society - work today should be valued more than work yesterday. If you want to grow your money, you make it work. This is just a rehash of the problems with the gold standard now. But worse.

ballofrubber 6y ago
> As an employee, in a growing economy denominated in bitcoin, you would see your pay drop frequently as the money supply gets stretched. There's no reason at all to think BTC-denominated salaries would be able to stay constant as the value of the money rises. Assuming the world productivity is denominated in 21 million bitcoin, if world productivity grows by 3% per year, my salary of 1 bitcoin gets more purchasing power. This is where you get a lever with your employer, he needs you to earn less, you don't have to negotiate to earn more (same applies to minimum wage, it needs to be adjusted upwards in a inflationary monetary system) Every money is inherently more valuable yesterday than today, as you can divest it. I would argue that it is very much in the interest of the wider society to have their savings not inflated. The best way to make your money work will always be to invest it in productivity, be it in educating yourself or investing it in companies. This investments need to be a lot more smarter and more sustainable than those of today, as the base money is not worth less every year. I think wasteful spending is a property of an inflationary money, where smart spending would be a required property in a non-inflationary money.
- Nursie 6y ago
  There's no lever there. In a bitcoin economy there's no chance your contract gives you a fixed salary in the first place, it would be tied to some measure of inflation. Like I said, most of the rest is just a rehash of gold standard stuff.
  - ballofrubber 6y ago
    > Like I said, most of the rest is just a rehash of gold standard stuff. Exactly, however bitcoin is infinitely better money than gold and makes the "gold standard" viable. Fortunately the gold standard has a lot of proponents globally, some of whom started embracing bitcoin. I just hope that the experiment bitcoin keeps on going and I'm guessing we will see some form of resolution, maybe even in this decade. There is a lot to learn still.
    - Nursie 6y ago
      Ah, I see, you haven't figured out why the gold standard was terrible either.
      - ballofrubber 6y ago
        Tbh. my very basic knowledge comes from strongly opinionated austrian economics literature, which tends to confirm my bias, and from [0], which at least gives me some data points to refer to. Do you mind giving me some of your arguments why it's terrible? [0] https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/
        Nursie 6y ago
        I mean, for a start 'Austrian' economics is a joke. There's plenty of literature out there about the end of gold standards in various countries. The upshot of it is that economies get warped by constrained currency supply and those who already have tend to get more, over those who produce or invest.