Hacker News Reader

Comment by santiagobasulto | Hacker News Reader

I see the point and I agree with you. But let me point out 2 things for the sake of being scientifically correct:

  * we're just at the middle of the month
  * the price has dropped 4x, those charts are in USD

So comparing June (14 days) to Dec is not entirely fair.

Your point still stands.

View on HN

That's the problem - your expenses (salaries, rent, hosting, etc.) are paid in USD.

Meanwhile, your revenue is in ETH.

Even if you can maintain the same volume, your revenue can drop drastically if ETH price drops.

A 100 ETH sale earns you 2.5 ETH. In January, this was worth $7.5k. Now, its worth $3k. Your revenue dropped by over 50% but your expenses are going to stay the same.

I can't see how the economics of businesses like this can work out.

> your expenses (salaries, rent, hosting, etc.) are paid in USD.

nobody (sane at least) would mix expenses and long term, high volatility investment as crypto. I own some crypto and I don't care today's price, it's a 10y investment.

Except in this case, its unavoidable - unless your employees and landlords and hosting companies accept crypto. Your revenue will always be in ETH (or other native tokens). Your expenses will always be in USD (or local currency). Which is what makes this model unsustainable.

Unless you're immediately converting crypto to fiat.

how does that matter in this situation? You get paid in ETH. ETH was $3k in January. Its $1.2k now. Ergo, your income is now $1.2k, not $3k since your fee is fixed.

Reply on news.ycombinator.com