Goodbye HODLing, Hello ‘Spend and Replace’

We made it through quite possibly the worst fee challenge Bitcoin will ever face. Us graybeards remember picturing that as the greatest problem in the world to have, and we reached new highs along with it.

The worst part about the fee issue wasn’t not being able to use bitcoin day-to-day, we’re still not there yet, but that it made sense to pause on spreading it as many of us had grown accustom.

“Can I pay you in Bitcoin?” and “Can you pay me in Bitcoin” should be the first question we ask at the first onset of every transaction. This is how we expand the network. Only a real world offer will make Bitcoin real as money to some people, this is how we open minds, by putting money on the table.

Many of us came to Bitcoin in the old days thanks to the benevolent governments in our world banning certain forms of recreation. It’s utility became obvious. We needed this kind of money to do something we wanted to do, easily and without financial censorship. Let’s not forget that in the midst of appreciation/depreciation relative to legacy currencies.

One of the old excuses is that, if I convert all my spending fiat to Bitcoin, I may not be able to replace the Bitcoin for a few weeks until I get new fiat…

• It goes up more than it goes down so you’ll probably profit by virtue of it not being fiat in the first place.
• If you’re worried about losing value over that time, you can buy an equivalent short position to what you would keep in fiat on Bitmex, you’ll break even.

I know exactly what amount of fiat dollars I need on a regular basis, everything else becomes crypto. Everyone I do business with gets a crypto settled offer. If I need to hold fiat, I short that amount of bitcoin so that the worst I can do is break even by holding it. I do the opposite if I have to spend bitcoin I can’t replace, I take out a long position on Bitmex in that amount so that I don’t lose by not hodling.

It is incumbent in all of us to make Bitcoin a utility to others as we know its power. These short and long tools let us live up to the savvy financial decision that going crypto is. Fiat is legacy, and it isn’t hard to limit yourself to a few dozen fiat transactions a year.

I hope you've appreciated this insight and will visit my blog at capitalistdog dot com, use the shill links, and sub.

Submitted February 21, 2018 at 10:54AM by Capitalist_Dog http://ift.tt/2sKxVnV