0 sats \ 20 replies \ @DcaSignals OP 7 Dec 2023 \ parent \ on: How risky are Stablesats? bitcoin
Say you earn 50,000 and have cost of 30,000 and the value of your bitcoin decreases 20%. You are paying a 20% 'tax' for market volatility and your profits are cut in half. Why would you want your profits be cut in half? For many that risk is impossible to take because they have to feed their familiy and take the risk of not being able to purchase new stock to run their shop.
Again, you're speaking from your privileged but limited perspective and you've never had responsibility for employees or feeding a family.
the value of your bitcoin decreases 20%.
now do the oposite (which is the most likely outcome)
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If the value of bitcoin decreases 20% that means your income is 20% higher in sats.
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Why would you want your profits be cut in half?
You see? your mind is still back to fiat "profits"... my mind is not. We are not the same.
https://i.postimg.cc/7hxSYjNS/HFSP-yeah.gif
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Was a bad explanation. You should keep all profits in bitcoin. Your treasury should be 100% in bitcoin. But your operational liquidity?
What if you have 5 employees with families. How can you justify taking a risk that you pay them only 50% of their salary?
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Did you read what I said before?
Earn in sats, spend in sats, hold in sats.
NEVER go back to fiat.
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When you spend in sats, how are you going to pay the same salary when the value of your sats has been reduced 20%? Fast for 4 months and not pay your rent?
What you suggest is only possible for people who don't have any cost, live off a farm they inherited or were able to purchase due to their privileged life. You get paid in sats and your only cost is your internet. You only eat eggs from your own chicken, produce your own energy with solar and pull the water out of a dirt hole.
It's not how it works for most people.
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Media business. Great question, this would make for a great survey among bitcoin-only executives. Would bet majority does hedge with usd.
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All employee get paid in bitcoin using stablesats. They receive sats sometimes more sometimes less depending on the sat/usd ratio. But to calculate the business it's better to have a stable unit of account with 8% depreciation than a highly volatile sound money. All profits and treasury go in bitcoin, but operational liquidity needs to be in USD.
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highly volatile
Bitcoin is up +150% YTD
Why are you concerned about volatility when bitcoin has been consistently trending upwards for an entire year?
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Bitcoin is up +150% YTD
You must be new to bitcoin. What goes up, also comes down and bitcoin is still highly volatile over the short term. A business has monthly cost, did you know that?
The stable in this whole thing is Bitcoin, not the way around.
But yeah will take time until people will get that properly.
Until then keep using these monstrosity that doesn't make any sense.
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