El Salvador to adopt Bitcoin as legal tender

Post by [deleted] » Sun, Jun 06, 2021, 2:18 AM UTC

revnode wrote: post #129

antihero wrote: post #60

Earlier quoted context omitted.

Yeah but imagine if you bought a beer for $4 and then next week the beer was actually worth $8 and the next it was worth $7 and then a few months later the beer was worth $50. The whole point of fiat is that it is stable and so you aren't fucking yourself by exchanging it for consumables.

Why does it matter how many dollars the beer is worth? It is worth the same number of bitcoins yesterday, today, and tomorrow. That's the only stability that is relevant.

Post by noahadavis » Sun, Jun 06, 2021, 2:24 AM UTC

Geee wrote: post #136

BenoitEssiambre wrote: post #97

Earlier quoted context omitted.

A deflationary coin cannot stabilize without destabilizing the economy that trades in it. https://benoitessiambre.com/specter.html

That argument isn't true. Deflationary currency can destabilize governments, not the economy. Econonomies fail because they're run by incompetent governments, who spend more than they can afford. Bitcoin is not guaranteed to be deflationary. It's deflationary when the economy is growing. It's inflationary when the economy is shrinking. Deflation will slow down economy, and inflation will accelerate economy. It's a st…

Post by bobthepanda » Sun, Jun 06, 2021, 2:29 AM UTC

derefr wrote: post #146

gbear605 wrote: post #144

Earlier quoted context omitted.

That’s fine as long as my job is willing to pay me in a constant amount of bitcoin and everything else I need to buy can be bought with bitcoin. If my salary is still in dollars, then what I can purchase for a day’s wages will vary hugely.

Presumably, in El Salvador, salaries would be denominated in BTC. That's the only thing that'd make any sense. (And, barring external regulatory force, it's very likely to be what a free job market where employees mostly spend BTC would move to doing.)

Post by samatman » Sun, Jun 06, 2021, 2:32 AM UTC

nly wrote: post #55

6foot4_82iq wrote: post #21

Earlier quoted context omitted.

America extorts other nations by virtue of the $US being the world's dominant reserve currency. The federal reserve can print money unimpeded, with foreigners bearing the brunt of inflation. The math is simple.

Foreigners only bare the brunt of the inflation if they own USD denominated debt or other fixed income assets. Americans suffer if the dollar inflates because imports get more expensive and rates demanded on USD debt purchased by foreigners will go up, making the loans more expensive in America.

Post by mytherin » Sun, Jun 06, 2021, 2:35 AM UTC

Macha wrote: post #121

Beached wrote: post #24

Earlier quoted context omitted.

they would be forced to accept it, however they would likely instantly convert it to a more stable currency at the time of payment through some processor. there will likely be a small fee to them for the conversion of Bitcoin to say, USD, but I imagine it would be similar to accepting credit cards for payment? and so it would be worked into the prices.

This isn't inherent in the definition of legal tender, for example large denomination paper notes (100/200/500 euro) are often rejected for fraud risk despite being legal tender, and the latter two ceased printing because legal vendors so rarely accepted them meant that illegal activity was a high proportion of their use.