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Yesterday, I paid my monthly car payment in bitcoin for the first time ever. I was so psyched that it actually worked that I frantically ripped open SN and spewed forth this post: #804931 Little did I know, (but of course realized later) @j7hB75 had actually just a handful of hours earlier written this thoughtful analysis of the program: #804386 You should check it out for a less spazzed-out take on the service.
Anyway, I said that I'd follow up on how different what I expected it would cost (493,555 sats) and what it actually cost. Well I got an email from Strike at 12:15 this morning and the difference is...drum roll...
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192 sats
That's right! I would have had to sell 493,555 sats to get $493.89 for my car loan payment and then either wait three days or pay an additional instant transfer fee. Instead, I spent 493,747 and my bill was paid instantly.
Now, when I go into the Strike app and look at the transaction in my history, it says that they included a $3.93 fee, so it sound like I did just get kind of lucky with some accidental arbitrage. That being said, this is the exact fee level I would have had to pay to sell the bitcoin anyway, so all in all, this makes the bitcoin-maxi life WAY more easy for Americans.
61 sats \ 1 reply \ @j7hB75 12 Dec
Thanks for the mention!
A slippage of only 192 sats. Not bad! The $3.93 fee you were charged was based on your fee level at the time the Bitcoin was sold.
Could you elaborate more on how you got lucky with accidental arbitrage? I'm not sure I'm following you on that point. To me, when you pay a bill it gets submitted and once it settles, you pay the price at the time in sats, no?
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So the 3.93 fee should have cost me a lot more than 192 sats (like almost 4000 more). I think the price of bitcoin in dollars was higher when the bitcoin was actually sold and settled than when I was clicking buttons over at Honda. So I meant arbitrage across time, not platforms. That's probably not the right term, but I think it sounds cool. haha
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61 sats \ 1 reply \ @freetx 12 Dec
I paid my monthly car payment in bitcoin for the first time ever.
Not asking for specifics. But can you explain the mechanics of this? Did you need to somehow enroll this vendor into Strikes "bill pay system" somehow?
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Nope, I just went into the Strike app, clicked on my profile in the upper right corner and then clicked on "Bill pay" under the "Banking" tab. In there, it gave me all the normal stuff you need to fill out to pay from a bank account. I went to my Honda loan and added that as a new payment method, made a payment from it, sat for a moment in disbelief that it worked, and then frantically signed into SN to brag.
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Interesting. I'm going to keep following what strike is doing, I definitely need to do some more research and see what fee tier I would end up in. I do like the idea of going all in though.
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Does Strike take care of all the taxes though behind the scenes? Do you get a 'tax document' at the end of the year?
If you were to just pay in fiat... and hodl the Bitcoin... Wouldn't that be better then as you don't have to pay the capital gains taxes on the Bitcoin now?
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They’ll send a tax doc.
I sell my fiat the moment I get it except when it’s physical cash. I don’t like paying the capital gains, but not as much as having no gains to tax.
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