Hello everyone, what is your opinion on Bitcoin and deflation of salaries?
I find it the hardest part to explain when talking about a hyperbitcoinization of the economy.
Discussion
Deflation of salaries? What does that even mean? Your salary would shrink to… what? Aren’t you measuring it in bitcoin by then and everything is priced in bitcoin? What does it matter what the salary is? Shouldn’t the only thing matter is what it buys you?
For example, in the future you have a salary of 100K SATS.
Since Bitcoin is scarce, your salary would naturally grow. But with time it would be impossible for your employer to pay your salary.
Thus we would have to adjust the salaries to deflation (just like it adjusts to inflation today). But it could take a lot of resistance from workers.
It’s better to have a deflationary currency than an inflationary one, but would the regular person understand that when their salary goes down in numbers, even though they can afford more things than before?
My guess is you’d have some sort of cost of living index and your pay would adjust to it.
Not a bad question. I would humbly add, if a person's skill improves through their experience in their position, they become more valuable as an employee. Also, as Bitcoin deflates, the business makes more in buying power. So, it's possible a person's salary will stay the same year over year, but the deflating Bitcoin means the employee will be gaining buying power. So while it may be possible for an employee to get a pay decrease in unit terms, if their skill increases and the business is generating more profits, it's also possible the employee would keep the same salary, or get a raise in unit terms.
i think its pretty cool to tell people who are employed that it's the boss begging salary to go down instead of you begging for salary to go up
But would updating the salary to deflation work?
Over time salaries will be adjusted downwards to reflect real value. People will naturally resist this and gradually be paid more over time.
The amplitude of deflation will be quite small compared to inflation under a fiat system and will generally be imperceptible over generations and largely driven by demand via population growth.
I Like you answer!!
And it is great to have a force that help workers