Bitcoin Forum

I just read this:
http://www.finance-guy.net/finblog/how-will-you-spend-your-bitcoin/10/8/2014

Makes an interesting point.  If we buy stuff with BTC and the company just sells it for cash right away, it's probably not good for the BTC price.

What do you think?  Will shopping with BTC be good or bad for BTC?

At this particular moment, I think the BTC rates are a joke. I don't know if in countries like United States it's the same, but here (Romania) i had 580RON worth of BTC and was only able to buy of 545RON. That is like a $10 difference. I will never buy with Bitcoins again until it won't be such a big difference from buying with my credit card. I could've saved like 20RON if I exchanged them into fiat then purchased.

Spending it can only make it increase in value. Being more well known for spending it on goods and services that the average person can use it for. Having it becoming more popular is a plus.
Now just waiting for it's adoption on paying the electricity bill and rent.

I think its good if we spend bitcoin into buying stuff as this will make it flow more into the market and it will keep it more alive

gladly I can say that I do spend my bitcoin lol there are plenty of retailers that accept bitcoin and there are plenty of incentives to using bitcoin like discounts and more lol :D

That is only one part of the cycle. After we spend it, we should buy bitcoins back on the exchanges. The net effect on price is cancelled out and we promote bitcoin acceptance along the way.

I always thought it would be a good thing for BTC if retailers all over the world were accepting it. Dont we want it recognized as currency?

For every spender there must be 100 or 1000 holders out there, I think the net effect of these coins leaving the economy are most likely negligible.

My policy, spend a little each month to support retail adoption, small price to pay but feels like I'm contributing some more to adoption.

I don't have a whole lot of bitcoin so I just hold onto it.  For my daily expenses, I don't really have an option to use bitcoin as a method of payment locally anyways, so those transactions remain in fiat.

I have just spend some mbtc in fasttech site, I love it!

I thought there are also some businesses that don't convert all of their Bitcoin earnings into fiat straight away?

I occasionally spend Bitcoin, I found it easier at times especially online. If I do spend Bitcoin I will usually replace what I spent, either ahead of or right after the purchase, so my balance always stays even in BTC.

Yes, mine (http://fs.tbz1.com).

the idea about bitcoin is "saving" not spending..
i always advise people not to hold FIAT for 5-10 years as $10 today may buy 8 loaves of bread, but in 10 years it may not even buy you one.. so spend FIAT and convert excess into bitcoin to hold.

after all a bitcoin in 2010 wouldnt have bought you a crumb of a pizza.. but now just 1bitcoin can buy you 10 large pizza's..

in short:
fiat: inflationary=spend as soon as you get
btc: deflationary= save until it can buy you more thing then its original purchase value

as for what companies do.. such as those that are linked through bitpay.. those conversions do not affect the bitcoin price on the many public exchanges. simply because bitpay do private swaps and funds never touch the public exchanges, thus dont affect public prices

Not only that it also creates a demand for the bitcoins and this will increase bitcoin price as well. If more people or business holds bitcoin then price also will be more stable. Otherwise if only trader holds the bitcoins then the price will be always moving up and down.

I guess that explain why recently the price of bitcoin has went up and down on many times already as there are many who use trading as their source of earning

Yeah, he has a great point. But this immediate conversion to cash is more probably when the price of bitcoin is volatile and new. This article was written a year ago, I wonder if this guy has a different opinion. Bitcoin certainly feels a bit more "regular" now that it did a year ago, less foreign or obscure.

Ok, This I did not know... thanks for that tid bit of information. Do you have a source or is this inside information?

I have a small rule for Bitcoin spending... Save 80% and spend 20% .... If we want Bitcoin to grow as a currency, we have to allow for some of it to go back into the system. How do people use a currency,

if 100% of a currency are hoarded, nobody would accept BTC as a payment method. In a sense, this is what is happening now already... the price is low, and a lot of people are not spending it... but rather waiting

for the price to increase. It's hurting adoption... because most merchants expected a huge increase in sales, and now people are hoarding.  :(

That's a good rule.

If you ever want to spend bitcoin on Amazon and save 20% then check out my website bitcart.io thanks :)

not directly spend

That is a bit over exaggerated.. Even if inflation hits 3%, your fiat doesnt lose 8 times its buying power for food.. I do agree that you may buy only 6 breads in 10 years and that saving is therefore non optimal, unless you can increase your holdings by more than the inflation every year.

yeah i was spending my bitcoin for top up my internet conection and even for buying my needs,
but i dont spend all of my bitcoin

I spend most of my bitcoin at purse.io or bitcart.io to shop at Amazon

I spend my Bitcoins to buy bitcointalk accounts to increase my Bitcoin stock.

So yes I'm spending my Bitcoin to increase my Bitcoins.

Before I do but for now I'm holding it hoping it's price will pump out in the future

Spending Bitcoins is good. You can compensate the company's dumping of their bitcoins, by buying back the same amount of bitcoins you spent yourself.
 
 
This line of thinking is a mistake. Please let me copy an answer I've mentioned in some other similar topics as well:

-------------------------------------------------------------

Even if you consider your bitcoins as long term investment, rather than spending money - what do you think will help raising the value of your precious bitcoins more:

• 1. Hodling your bitcoins and spending USD, thus only stimulating the USD economy
  
  or
  
  

• 2. Spending your bitcoins, thus stimulating the BTC economy, and immediately buying back new bitcoins (on exchange or circle or whatever), thus increasing demand for Bitcoin on the market.

Notice that the end result is the same: you essentially purchased some stuff, lost some USD, and kept your BTC. But with option nr. 2, you're actively helping to raise the Bitcoin price level on two ends: Bitcoin economy AND market demand. I really don't understand why even the most fanatic Bitcoin owners don't seem to get this :-\

Especially if you're a Bitcoin fan, believer, enthusiast, investor, or hodler, SPEND THEM! (And immediately refill your stash of bitcoins by buying new ones with fiat)

By just sitting on your coins, instead of using them, Bitcoin won't grow! Spend them, and buy back at the same time.

If you are concerned about the 0.2% exchange fee that this will cost you: think how utterly significant this is when Bitcoin rises a few hundred % in value.

Nice strategy man.
I didn't think of this.
I'm also gonna do the same thing.

I spend them for my prepaid sim card and steam wallet. But i have plan to exchange my bitcoin to fiat and then buy some new hardwares for my old PC ;)

my rule is to only spend the funds i earned the years before.. that way im always in profit.

i am putting all the funds i earn this year aside and only spend them when in profit.
also i dont spend as much as i earn so it all mounts up.

but the number one rule everyone should follow is
never spend at a loss..

once you follow that, then you can decide how much to spend out of the profitable amounts

no. i use it just middle. not of all..
if i spend "example" i dont have bitcoin again in my wallet...
nevertheless just little, i still to leaves it.

I do the same, I spend part of my bitcoins and convert it to my fiat currency and spend it on my basic stuffs and day to expenses, and it is really helping in the best way, as the conversion of bitcoin to fiat hardly takes fractions of minutes.