Replying to Avatar The Bitcoin Transition

I have spoken to business owners about this and they come with every objection possible. Below is the example I use to help them understand this concept in fiat and BTC terms.

If you earn 1 BTC per year today, and in two years your salary drops to 0.8 BTC, that’s a 20% pay cut in Bitcoin terms.

But here’s the kicker: if Bitcoin’s purchasing power doubles in that time, you may feel richer in fiat terms. For example, if BTC goes from $100K to $200K, then:

Your old 1 BTC salary = $100,000

Your new 0.8 BTC salary = $160,000

That’s a 60% increase in fiat purchasing power, even though you’re earning 20% less Bitcoin. ( for simplicity let’s not add in fiat inflation and monetary debasement over those 2 years )

Avatar
The Bitcoin Transition 8mo ago

The next part for them to get their head around is the fact the they need to drop their prices of products and services prices in Bitcoin typically at a faster rate than Bitcoin wages.

Reply to this note

Please Login to reply.

Discussion

No replies yet.