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92 sats \ 6 replies \ @Undisciplined 26 May \ on: BITCOIN..... always fucking with my head..... FiresidePhilosophy
I'm currently trying to think this through for myself. If I can find people who want my services (economic advice), how do I price that service in a way that benefits both sides?
The most obvious method is an equity model, but that opens me to all of the volatility of the business I'm working with.
I think a middle ground of profit share (or some sort of commission, when appropriate) and a base pay that's tied to long-run expectations about bitcoin's purchasing power could do the trick.
I imagine you take a base pay in Bitcoin (to cover FIAT costs associated with whatever cost you incur for said advice) plus a % of any upside in value of that Bitcoin for some agreed upon time frame.... I imagine it works something like this... for smaller Bitcoin/FIAT terms (lets say $100.00 or less you might have a 24-72 or 24-96 hour slice of time for splitting any appreciation in FIAT terms....and you can lock it in to an account for yourself to receive a discount in those FIAT terms equal to the split in Bitcoin terms...so you never exchange anything afterwards...except the software credits the NPUB (or maybe this works with chaumian mints? or something?....never thought about that....or as a federation....that owns the business and provides this to their customers.....holy fuck....could that work?)
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I'm hoping to work something out that doesn't require any reference to fiat exchange rates, but we'll see if that's tenable.
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Hell yea...that is going to be super difficult if you have long term agreements...one side or the other may get wrecked depending on volatility....unless both parties are well insulated to such volatility? Though even then....I wouldn't want to be on the 1 Bitcoin owed....if FIAT comparison takes a massive move....again unless the vol is ironed out with some type of protection maybe....???
Thats the beauty of holding the FIAT comparison....there is always protection in FIAT terms...even if FIAT ends and you owe a bunch in Bitcoin terms...(if FIAT has indeed ended then Bitcoin has become the only medium of exchange and it doesn't really matter anymore?
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You’re definitely right. I haven’t come up with a model that works for me and doesn’t blow up on the other party.
Another thought I had was basically two fixed wage rates: i.e. $100k and 0.1 BTC per year. They’ll somewhat balance out over time, while likely appreciating, and the value range isn’t likely to become untenable for either side in the short term.
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I think this is that "balancing act".... We have to maintain the floating rate of Bitcoin value as compared to the FIAT system we are forced to interact with....at least until such time as the FIAT system becomes more unstable than the Bitcoin one....
Imagine what we are going to do when USD (and other major world currencies) see even higher inflation rates.... It will get even more difficult to value things in the old systems...and things will be getting even less expensive in Bitcoin terms... imagine being locked in to pay 100k sats but instead of being valued at $100.00 usd it becomes $1000.00 from one month to the next?
For me - that is why I let the BTC value float when compared to the rent I charge...as I lock those rents in for 12 months....but imagine the pain I will feel if I lock someone into a 12 month lease at 1000.00/mo. and the value of that 1000.00 usd drops to 500.00 due to inflation.... It really is a matter of controlling the time and the value vs one or the other...
I think we are going to see a lot less long-term loan products on Bitcoin...and you won't find people with "annual" salaries but you likely find shorter and shorter term salaries....or locked in and paid up front or something....locked into a long-term multisig with monthly withdrawals or something based on performance?
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The transition will be pretty messy and I imagine many agreements will end up being renegotiated.