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31 sats \ 11 replies \ @nout OP 16 Feb \ parent \ on: Bitcoin Jungle needs buyer adoption, not merchant adoption bitcoin
If a bitcoiner doesn't pay at a place that accept bitcoin then there should be a device that slaps them with a wet trout.
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Agreed!
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Savings is a use case. Its economically irrational to spend the hardest asset you own instead of shittier when possible.
I understand the sentiment but I think its also very contradictory to everyone being free to do as they please without people trying to bully them into spending their hard earned sats.
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"Keep the hardest asset and spend the softest" is economically irrational in the world of bitcoin where you can easily exchange fiat for bitcoin in seconds to minutes (and minutes to hours without KYC). If exchanges would not exist, then you are correct - "keep the hardest asset", but in the world with exchanges that just doesn't make economical sense.
Just buy however much bitcoin is your target to have. You can buy it right now, in the next minute, you don't need to wait until you spend all your soft assets.
Really think through this - you are not talking about your house or gold in vault. These assets are very illiquid. Bitcoin is extremely liquid.
You are saying "I want to have as much as bitcoin as possible, e.g. 1 BTC by the end of year and I'm going to get it by spending $100k fiat on my usual expenditures". Why would you do that to yourself? :) You can literally just buy the 1 BTC right now and then still pay your expenditures the same way. You can have your target today.
Again, everyone is free to do whatever they want with their bitcoin, the same as I'm free to highlight the illogical approach they take :)
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DCA is a trick to make people better, but it's just a trick.
DCA is a method to spread volatility risk over time. It makes extra sense if you have a salary in fiat and/or you don't have that 100k right now, for example because you still need to earn it - like most people. Taking out a loan and buying the 1 BTC now is a gambler move: DCA is a much safer strategy.
If you're living off sats and your income is in sats (or you're filthy rich), then it makes no sense whatsoever - agreed.
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I don't particularly care to explain the nuance of all the things you've just hand-waved away as your comment is very naive and simplistic.
point of my original comment was that bitcoiners for all their suppose believes in freedom and whatnot quickly slip into a very prescriptive mode of "i know best, you should do as i think". You keep going on with "everyone is free to do whatever they want" and "i know whats best for everyone" at the same time, so I'll stop wasting my time with this conversation now.
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A lot of people were just repeating the "keep the hardest money" as if that's given and that's the only truth. To get to these people I wrote this point in a very naive and simplified way with hope that at least one person will catch the idea and later think about the problem more thoroughly. On purpose I did not include situations where you actually want to keep bitcoin and spend fiat (without using exchanges).
In my opinion if rich people and bankers are the only one using bitcoin to keep and expand their riches and the majority of the world is not going to actually use bitcoin as peer to peer cash, then that's a sad end of bitcoin.
In the article I highlighted how there is not much missing from making bitcoin truly useful for farmers, old people, etc. The biggest blocker and a gap is that people are not paying with bitcoin (again, sellers are already accepting...). Some of them may have valid reasons, like you do, but some of them don't in my estimate.
So thank you for wasting your time with my conversation and if you would be willing to waste some more, I would be interested in your POV of when you don't want to spend bitcoin.
fwiw "being hit by a wet trout" is an old meme.
Buying BTC with short-term horizon invites volatility and taxes. It is only hard if held for 5 years or so. If I expect expenditures in the near term, I hold cash in the account for those.
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You're only taxed on fiat "gains". So, by holding Bitcoin instead, even after paying taxes, you have more fiat value than you would have had if you had held fiat over that same period.
As for the volatility.... if a 10% dip prevents you from paying bills, then you probably spend too much, and/or over leveraged yourself. Which is a sign that you're still living heavily within a fiat mindset.
The dollar is far more volatile than Bitcoin.
Also, such a 10% drop would mean you get a tax break when you go to file your taxes next year.
I think OP makes a lot of sense. Way too many Bitcoiners treating Bitcoin purely as an "investment", worried too much about their fiat gains/losses.