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121 sats \ 6 replies \ @Undisciplined 15h \ on: Should Argentina just dollarise? econ

I recall something about dollarization being part of Milei's plan.

There's probably a really messy interim period, where you have to keep using pesos because so many contracts are made in those terms and the currency is too volatile to just peg directly to the dollar.

42 sats \ 5 replies \ @optimism 8h

I dont understand how one would be able to denominate any longer term contract in pesos. Someone will always get rekt?

100 sats \ 4 replies \ @Undisciplined 8h

I don't understand that either, but it's also hard to imagine there aren't any contracts denominated in the legal tender currency.

42 sats \ 3 replies \ @optimism 8h

What a former client did in Turkey, and this was between periods of high inflation, was basically to do every contract in 3 parts: USD, EUR and TRY, 1/3rd each. And then still get rekt on the TRY side over the course of 5 years.

100 sats \ 2 replies \ @Undisciplined 8h

That's interesting. I've been thinking about how to do that with dollars and bitcoin for long term contracts.

42 sats \ 1 reply \ @optimism 8h

I did a big contract (for a solo effort) in bitcoin denomination and it wasn't successful. The last milestone still isn't paid because the counterparty has to take out a massive loan now to pay me. So we're all waiting for the dip. lol.

Mixed denomination works better as long as it's volatile against your liabilities.

100 sats \ 0 replies \ @Undisciplined 8h

For a permanent salary situation, I was thinking of something where a future bitcoin value is anticipated ahead of time and there's a fixed fiat amount combined with a fixed bitcoin amount.

Over time, the fiat value shrinks and the bitcoin value rises. It should be possible to construct something that covers your fiat obligations while also gaining in value.