Welcome to Pup's Double-Takes, where I dive into the things that made me stop and say, 'Wait, what?' My goal is to unpack the curious and confusing, making it educational and, hopefully, a little entertaining along the way.

This question reflects a common debate about spending Bitcoin, but many discussions miss the forest for the trees regarding our broader economic activity. So let's take a step back and dive into what really matters.

You've probably heard the story of Laszlo Hanyecz, who spent 10,000 Bitcoin on two Papa John's pizzas on May 22, 2010---a day now known as Bitcoin Pizza Day. At the time of writing, those 10,000 Bitcoin would be worth around $670 million. That's a staggering number, but notice my phrasing here. I did not say, "those pizzas would be worth $670 million." This is an important distinction.

Those pizzas were perishable, consumable goods that gave Laszlo value in the moment. Nobody would argue that pizza retains value over time---once it's eaten, it's gone. So, it doesn't make sense to say those pizzas were ever worth $670 million.

Here's the more interesting question: Did you buy any pizzas in 2010? Did you buy any Bitcoin?

You might think Laszlo was foolish for spending 10,000 Bitcoin on pizzas, but if you bought any pizzas or other goods in 2010 and didn't buy Bitcoin, you essentially made the same decision he did. You valued the goods and services you consumed more than you valued Bitcoin. And that's the real point here: Every financial decision you make reflects what you value in that moment.

At the time, Laszlo valued two pizzas more than he valued 10,000 Bitcoin. You, too, valued whatever you purchased more than Bitcoin---whether you were aware of Bitcoin or not.

Every transaction involves an opportunity cost---the value of the next best alternative you forgo when making a choice. When you spend money---whether it's Bitcoin, dollars, or any other currency---you're making a decision. You're choosing to exchange one form of value for another, and that decision comes at the expense of using that money for anything else.

When you bought a pizza with fiat currency, you were implicitly saying that the value of the pizza was worth more than anything else you could have done with that money at the time, whether that was purchasing a different good, or saving in Bitcoin, or some other store of value. And that's okay. This is how economics works for everyone.

This is where I take issue: Considering the potential future value of Bitcoin and deciding not to spend it reflects a narrow and incomplete view of your economic actions. When you spend Bitcoin on a pizza, you're giving up your stake in whatever future price action that Bitcoin may have seen. But the same consequences exist in every financial transaction you make.

Instead of focusing solely on the Bitcoin part of your financial life, I would argue we should take a more holistic approach.

Cash flow is simple: it's the difference between what you earn and what you spend. Ideally, your income is higher than your expenses, leaving you with a surplus of money ("labor receipts") to invest or save.

The second key concept is the quality of your savings vehicles. Bitcoin is seen by many as a superior store of value compared to fiat money, which loses purchasing power over time due to inflation. Bitcoin's finite and metered supply issuance means that it is likely to maintain its purchasing power against goods and services, unlike rapidly inflating fiat currencies. As a relatively small monetary network still early in its adoption cycle, it may even gain value against these goods and services over time, even if its value may swing wildly over shorter time frames as the market determines its present value.

This leads us to the reason I find it nonsensical to make any blanket statements about whether or not you should be spending Bitcoin.

If you denominate your life in Bitcoin terms, you will realize that every non-Bitcoin purchase comes at the expense of being able to hold Bitcoin. There is functionally no difference between paying for a pizza with Bitcoin or paying for it with fiat. In both cases, you have chosen to acquire a consumable good with value you had saved.

Am I arguing that you should blow your entire stack while retaining your fiat? Obviously not. But why would you be saving fiat in the first place?

Ultimately, there is an argument to be made for holding a small amount of fiat to cover necessary payments should the price of Bitcoin drop. However, the focus should not be on whether you are spending Bitcoin or fiat, but rather on the value you're exchanging.

The real issue isn't the question of whether you should spend Bitcoin or fiat; it's the understanding that every financial transaction, regardless of currency, is a choice to exchange value.

Whether you're using Bitcoin or dollars to buy a pizza or pay your rent, you're parting with a portion of your stored value to obtaining a good or service you value, at the expense of obtaining anything else with that portion of stored value. The currency used is just the medium---it's the value you exchange that matters.