Present Value of Bitcoin Financing Alternative #4

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Labor as Finance Transaction Purchase

Where Bitlanders receives or retains account ownership of Bitcoin which otherwise would have belonged to an earner, but for the characteristics of the relationship between Bitlanders and the earner, the earner presumably accepts such arrangement in anticipation of an anticipated higher future rate of earnings.  

However, the relationship lacks any specific assignment as to how much those increased future earnings will be, or or what part of those future earnings will result not just from labor alone, but from what is essentially an investment in Bitlanders future earnings.  Given that lack of specificity, future anticipated payment function more as a return on the "invested" Bitcoin, than as compensation for services performed.  The services themselves function less as inducement for Bitlanders to make payment, and more as a procedure or format to disburse investment returns.  Bitlanders benefits from this by having obtained fiat currency.  The earner benefits in having, essentially, purchase bitcoin, which (a) provides a potentially higher market value increase than local currency, and (b) may move in a different direction from local fiat currency, and therefore provide protection against economic shocks.  

However, all purchases of Bitcoin, albeit by diverse structuring, remain subject to present value valuation, allowing a comparative cost analysis with other Bitcoin finance alternatives.

 



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