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dasyatidprimetoday at 12:18 AM1 replyview on HN

That doesn't follow. I'm pretty sure they're talking about the effect of nominal wage stickiness: you're not constantly renegotiating your rate, so when there's fluctuations in relative value, it matters what unit the original number is denominated in. Compare with the case of a US expat being paid a steady salary in USD and converting to the local currency to make purchases, if you want an example with a similar mechanic but very different intuitive feel and practicalities.

(I'm not sure they're right about the overall effect though.)


Replies

unselect5917today at 2:53 AM

You basically nailed it. USD crashed in the 1970s after the Nixon shock, and is basically a shambling corpse losing 3-8% of its value every single year while BTC is 600x the value of a 1913 dollar... and trending up: https://i.imgur.com/PJT01T8.png

Even if they don't give me a raise, I'll still have more purchasing power at the end of a year rather than less as the case with USD.