Can Bitcoin Wages Lower Volatility?
A good discussion here, from Coinbrief, is whether wages paid in Bitcoin would lower volatility. In short the proposal put forward is as follows: Bitcoin wages > businesses need more Bitcoin, they either buy directly or offer goods/services or increased incentives for Bitcoin sales to customers > or use Bitcoin wages (which amounts to the processor buying more bitcoins) > businesses would ask suppliers to accept Bitcoin > employees would be paid in Bitcoin. An important stage missing is that a country's government would need to accept taxation in Bitcoin (or a relative Cryptocurrency that....
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More effective transaction processes and lower charges encourages Nigerians to seek cross-border employments amidst harsh local economic conditions. Jonathan Chester, President of Bitwage, says to Cointelegraph: “When it comes to the unbanked, now they have a way to receive international wages in a convenient and scalable fashion. There is nothing scalable or safe about needing to go to the same cash withdrawal location on every payday, to grab a bag of cash which you need to smuggle back home to hide underneath your bed.” The nation’s failing economy. The dwindling economic situation has....
Bitwage is now operating in India offering to improve international wage distribution with cryptocurrency. Now millions of workers from India will be able to get their wages paid in bitcoin and INR. Bitwage Now Available for Indian Workers. On December 21 Bitwage announced a strategic partnership with the Indian bitcoin-based firm Unocoin. By utilizing....
The bank's analysts pointed to gold's much lower volatility.
Since its birth in 2008, financial experts and institutional investors have criticized the viability of Bitcoin as an independent currency, due to its highly unstable volatility rate. According to data provided by the Bitcoin Volatility Index, however, the volatility of bitcoin price against major currencies such as US Dollars have declined significantly since 2010. More importantly, the rate of volatility has decreased at a consistent pace, dropping at an average rate of 25% per year. At the beginning of 2011, the standard deviation of daily returns (volatility rate) recorded around 8.5%.....
Bitcoin wages are becoming more common globally, particularly among “borderless” remote workers and in certain regions like Latin America. Are cryptocurrency wages an idea whose time has come? Maybe not. It’s one thing, after all, to dabble in Bitcoin (BTC) with one’s excess cash and quite another to take a significant portion of one’s salary in BTC. Moreover, there are often tax and custody questions about crypto, as well as concerns about price volatility. There’s the matter, too, that few actual items and services can be purchased at present with cryptocurrencies. It’s not surprising,....