This is what I was asked after having a discussion on crypto and its future and being asked another question considering the volatility of the markets.
"Would I be willing to get paid in Bitcoin?"
Yes.
"What percentage are you happy to get in crypto?"
100%
...but I have caveats.
It all depends on my current needs as like it or not, the Bitcoin markets are volatile and it is messy and expensive to go from Bitcoin into the cash that is required to cover daily needs. Because they are daily needs, like paying bills and shopping, it isn't useful to get paid what I require in something that can drop down 30% in a day and take months to recover.
However, since I am a holder and looking long, on the percentage that I would put into Bitcoin anyway, yeah, why not? If I don't need that portion for anything else and I am going to expose it to the volatility for the next several years anyway - it doesn't really matter if I get paid in it or if I take it in cash and buy myself. So, there has to be a benefit to get paid directly in it, such as lower costs of transfers or tax benefits.
But let's say for example I had one job that covered all of my current needs, and a second job that covered all of my investment capital, I would happily take the 100% on the second. However, even with this, I am not a Bitcoin maximalist, so I would want to have it open to options.
Yet, if I was for example incapable of trading and making these decision myself, I would be happy to have a percentage paid in crypto directly, knowing that the "volatility" is not quite as it seems, when zooming out.
This is the crypto market cap for about the last seven years:
This is for the last three years:
Just imagine if you were programmatically buying with 10% of your income for just the last three years. Would you have been worried about the volatility of the day to day much? Unlikely. You would more likely be a millionaire - well, if you have a job that is.
When it comes to the risk, I am not willing to risk being able to cover my daily life but if I am in a position where I have available capital, I am willing to risk it in comparison to other forms of risk, like traditional investments. Nothing wrong with those too, but I find it crazy that seasoned investors are not willing to risk a percentage of their capital on crypto and more than that, they aren't even willing to investigate it.
"You're a believer?" was asked as if I am a crazy person who has no understanding of what is valuable, yet in the next sentence the person said how crypto isn't real, unlike Euros, because there is no central bank backing it. This is the average mindset of people, who do not realize that they are believing in magical thinking also, believing that there is stability in the fiat currency they hold, ignoring that the centralized nature of it means that the central banks are using it as their personal piggybank, whenever they need "a bit extra", they print more and devalue every fiat hodlers stack.
But yes, I am a believer that a decentralized economic future is coming where there is going to be immense value transferred onto the blockchains and generated through crypto. I do not know what particular tokens will be around in five or ten years from now, but I predict that Bitcoin and Ethereum will be and my hope is that more of the ones I hold with utility like BNB, HIVE and AVA will attract additional usage too.
People are yet to understand what makes crypto valuable in terms of its nothingness, but in time they will realize that the possibility to own a digital property on a blockchain is highly valuable and comes with something real estate does not - mobility. Having mobile wealth is going to become an increasingly used superpower that was once reserved only for the corporations and the extremely wealthy, while everyone else was bound by the ground upon which they stand. When it comes to having superpowers, those with them do not want everyone without them, to have them too.
The future is coming, like it or not and I am a believer that the economy is going to be fundamentally changed through the continual uptake of crypto and decentralized economies and communities. The markets are dipping all over the board today and every dip in crypto, means that more people will move a percentage of their traditional funds out in order to BTFD. In time, the amount of people doing this will stabilize the dips downward and the massive amount of new users will drive the highs even higher. This means that the ceiling keeps raising, as does the floor.
However, looking at the volatility day to day - I am not going to bet my daughter's dinner o it. But, for an opportunity to own a slice of the future, I don't mind going a little hungry from time to time myself.
Taraz
[ Gen1: Hive ]
