35 sats \ 3 replies \ @nullcount 19 Sep 2023 \ on: What is the percentage that you use Bitcoin to settle your daily transactions? bitcoin
TLDR Spend soft money, save hard money.
Every spend of BTC I've ever made was regretted 2-4 years later.
Spend and replace only if you gain something for the extra effort. Discounts, rewards, better privacy, etc. Don't forget to replace!
Those who are 100% BTC cannot replace what they sell and may be forced to sell at inconvenient times. They also get more gains than someone who is 90% BTC but to me the risk of being a forced seller is worth having a 10% fiat position to spend from.
Seconded.
But having a 10% fiat position is dangerous, because it means having more and more fiat as your BTC stack grows. (Example: Let's say you have 1 BTC and $2700. As your BTC stack grows to 2 BTC and the price goes to $100k, you suddenly have to have $20k in fiat, which impedes your stacking for no good reason).
The percentage of my fiat position decreases over time, because I aim to have a fixed amount of it; not nominally but in terms of purchasing power, namely enough to pay my anticipated bills.
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Aggreed, 10% could be 1% or 50% depending on the size of one's sat stack and their monthly expenditure to maintain their desired lifestyle.
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I love how you talk about soft money vs hard money. I do such mental accounting in my mind too but I wouldn’t have the language to put my ideas in such clear terms. Thanks, it helps provide greater clarity for me wrt money
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