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bryanculver | 8 years ago

If it's from @aantonop on The Kevin Rose Show (which I just got done listening to myself) he did mention that until the volatility comes down, prices can't be pegged to the Bitcoin (or many cryptocurrencies for that matter).

Example: At the moment of me writing this, let's say I wanted to be paid $50/hour for to develop a website. That is my desired value for my work. It's value today will large in part be the same next week, month, maybe even year. That would be 0.006086BTC. If I were to list that as my asking price instead of the less volatile $50, next week I could very quickly price myself out of the competition, surely goes the same next year (either direction). I continuously re-evaluate the the BTC asking rate based on the exchanged value to me. One day though, that won't be the case. Once the market stabilizes and dips and gains are less than 5% over the year, I can expect this to be unchanging and start valuing directly in BTC.

He mentions it in the podcast that several countries with highly volatile national currencies actually use a more stable currency (such as USD) to list an asking price for a good, but are actually paid in the their currency's exchanged value to that amount. (I'm still looking for a reference to such occurrence).

Although the value of what he was paid in yesterday has gone up (Got $5 worth of bitcoin yesterday, now worth $6) the cost of the product he buys tomorrow will inevitably go down (0.00075 today, 0.00060 tomorrow).

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