0 sats \ 1 reply \ @hodlpleb OP 11 Jan \ parent \ on: How Things Get "Cheaper in Bitcoin" Personal_Finance
The tables I made are definitely over simplified - can't get the same house for $300k today that you'd get 5 years ago, etc. Plus then you're paying rent or whatever in the meantime.
Totally, but the principle applies. If the thing you buy something with gains value faster than the thing you bought then you are effectively losing money.
I would not make a big purchase with bitcoin today. In your example about buying bitcoin in 2018 and then buying a car in 2023, that 0.81 bitcoin used in 2023 to buy a car would be worth ~200k in 2028. Obviously one is far better off holding bitcoin than holding dollars, but it would poor financial decision to buy a car with bitcoin right now.
As a very real example, I bought SOL at $20. I sold 25 of them at like $35 to buy concert tickets. Of course I still made money with my SOL and so I effectively paid $500 for $800 tickets, but the opportunity cost of buying those tickets was a couple thousand dollars.
That is the math. Your argument is the $500 for $800 tickets. That is undoubtedly a great deal. My argument is the if i had the 25 SOL they would be worth $2500 now. Not such a great deal.
reply