Spending Bitcoin These Days

[marketprice]

The compelling reason is that you are able to spend bitcoin directly. For you it may be a hassle because you don't want to ever touch your coin (evidently you don't own many). For some people, it's an opportunity to extract some value from their profits.

If that is compelling then you are easily compelled. I would be more than happy to place a bet regarding who of us holds more BTC

I'm not a betting man... and mine wasn't a challenge, just a supposition. If you do own many bitcoin (say, more than 30% of your net worth), then the more usual thing to do is to export a portion of your profits--even small--to other forms of store. Most of my BTC purchases have been like that, some gold/silver, some magic, some other stuff... just in order to ensure a portion of my gains is in a different form, suitable for different times.

in that case, the ability to spend bitcoin directly is compelling and costs less than using regular cash.

I convert no more than 4% of my holdings to fiat annually and use these funds for life experiences. Precious metals are more of a burden and I stay away completely unless I'm buying a watch.

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[marketprice]

I totally agree with you, and I've been making the same point for probably as long as I've been a member of bitcointalk. The opportunity cost is way too much.  The other thing is that I get my paycheck in fiat, and everything I need is priced in fiat.  There's no reason to buy bitcoin just to turn around and spend it.  It has always been a speculative instrument to me and always will. It can function as a currency, but that's not really what its primary purpose is.

Bingo!!!!!!

CURRENCY IS NOT THE PRIMARY PURPOSE.



I wish more people understood this.

[adiwibowo]

I guess that does not make sense, so you should consider it to spend bitcoins.

[BingoDog]

I totally agree with you, and I've been making the same point for probably as long as I've been a member of bitcointalk. The opportunity cost is way too much.  The other thing is that I get my paycheck in fiat, and everything I need is priced in fiat.  There's no reason to buy bitcoin just to turn around and spend it.  It has always been a speculative instrument to me and always will. It can function as a currency, but that's not really what its primary purpose is.

Maybe function as a currency isn't the main purpose but for me exactly that functions very well. I'm not buying bitcoins to spend them, I'm earning them and by spending them I can even save more than that with paying with fiat. And I also believe that Bitcoins have to have practical purpose otherwise what is the use of it. You can't just keep them in your wallet forever.

[dua98222]

I see more and more merchants accepting Bitcoin but I feel many are missing the point. I, along with the vast majority of you, hate spending my Bitcoin. The only reason I would spend Bitcoin is if I can get a 20%+ discount on an item or service that I would be purchasing anyway. This also assumes I can immediately purchase more BTC to cover what I spent. I have done this before for purchases on Purse, then buying the BTC right back on Coinbase. The headache alone is hardly worth it. So merchants! It's great that you accept BTC but give us a compelling reason to spend it at your establishment, otherwise we really don't care.

Exactly!!!!! Not long ago I have seen a local merchant charge EXTRA if you wanted to pay with BTC. It's absolute crazy how they thought that would work?? I wish I would have screenshot it. I for one don't spend any, I'm only trying to get more. 

[drm]

I totally agree with you, and I've been making the same point for probably as long as I've been a member of bitcointalk. The opportunity cost is way too much.  The other thing is that I get my paycheck in fiat, and everything I need is priced in fiat.  There's no reason to buy bitcoin just to turn around and spend it.  It has always been a speculative instrument to me and always will. It can function as a currency, but that's not really what its primary purpose is.

Bingo!!!!!!

CURRENCY IS NOT THE PRIMARY PURPOSE.



I wish more people understood this.

It used to be thought of as a currency.
Now people think twice before they spent bitcoin for useless stuff or small expenses.

[RodeoX]

I totally agree with you, and I've been making the same point for probably as long as I've been a member of bitcointalk. The opportunity cost is way too much.  The other thing is that I get my paycheck in fiat, and everything I need is priced in fiat.  There's no reason to buy bitcoin just to turn around and spend it.  It has always been a speculative instrument to me and always will. It can function as a currency, but that's not really what its primary purpose is.

Bingo!!!!!!

CURRENCY IS NOT THE PRIMARY PURPOSE.



I wish more people understood this.

People like Satoshi Nakamoto?
Bitcoin is ONLY a currency to me and was designed as such. I have no interest in risking my financial freedom by using dollars. Last year I had to replace my debit card 3 times due to security breaches. Guess how many times I lost my identity using bitcoin?

And just in the last weeks we find out that in the Equifax breach 55% of adults has their identity stolen. You can see if you are involved here: https://www.equifaxsecurity2017.com/

Of course the Eqifax board sold their financial position before telling anyone.  How shitty is that? Is this the dollar you think is so good for you? Bitcoin is the best currency in history and miles beyond driving truck loads of local currencies all over the world. You can keep your bank coupons.

[Baby Dragon]

Bitcoin has largely became an investment asset than a currency. Most of the Bitcoin holders believe in holding Bitcoin rather than spending because of its deflationary property comes with limited cap. Till when fiat is available which is inflationary, people are less likely to spend cryptocurrencies. In your case, yes if there is some really big deal using Bitcoin, then only people can think of spending. Otherwise who will like to spend something which will grow in value just by holding.

Yeah , just hold. Do that and you;re going to kill it.
Do you remember what drove the price high?  Adoption and merchants.

Holding will get you nowhere.
Remember what the price of bitcoin was before the first pizza was bought?    0!!!!!!!
If everyone holds and nobody will use it it will go back to that price.

Well, I agree that just hold your bitcoin before you regret to spend your bitcoin. We all know that the price of bitcoin will become more and more expensive and holding is one of the best that you could do if you wan to make and earn more income. Be patient and just hold your bitcoin.

[anon4250158]

So at what point would people here feel comfortable using bitcoin as a currency?  What price would make it acceptable?  Does it have to do with the number of people who have adopted bitcoin?  Price stability?  What?

[orions.belt19]

I think that the merchants just wanted to provide more options and opportunities for the bitcoin users and owners. I think this is convenient when a time comes that they have no fiat money to spare, and they would have to resort to using BTC.

But I'd have to agree with you OP because I myself also would prefer to keep and hold my bitcoins. Definitely currency is not the primacy purpose of Bitcoin. There has been numerous times that I've been tempted to exchange my BTC to fiat money so that I may spend on other things but I would remind myself that it is better not to but to just keep my BTC and wait. Patience is a virtue and waiting for the right time to sell is very difficult.

[Vansire]

It's funny. Bitcoin was to many people the answer to central banks forcing a few percent inflation, which they do to prevent hoarding and crushing debt. And here we are, not spending Bitcoin but hoarding it. I hope nobody took out a loan in Bitcoin last year.

[JasonXG]

I see more and more merchants accepting Bitcoin but I feel many are missing the point. I, along with the vast majority of you, hate spending my Bitcoin. The only reason I would spend Bitcoin is if I can get a 20%+ discount on an item or service that I would be purchasing anyway. This also assumes I can immediately purchase more BTC to cover what I spent. I have done this before for purchases on Purse, then buying the BTC right back on Coinbase. The headache alone is hardly worth it. So merchants! It's great that you accept BTC but give us a compelling reason to spend it at your establishment, otherwise we really don't care.

Why so you hate spending btc ? You going to spend money anyway so it may as well be btc. If will help support bitcoin and create additional transactions. Where are you getting 20% discount ? That's great and I'm glad for you. Hopefully more use bitcoin to make purchases and more accept btc.

[chairul.muttaqin]

a thing I find hard to do, with purchases using bitcoin you will most likely lose money, everything we buy with bitcoin is not worth the price in general, because the transaction process is more expensive.

now bitcoin has more expensive transactions fee than some years ago. several years ago the price of bitcoin is no more than 1 dollars for transactions fund around 10 till 50 usd in bitcoin. i think the fee is something bad for this case. to be honest i don't wanna pay extra fee (from bitcoin transaction) while spend my balance to buy something

[rodskee]

You've got a point... People don't see it as a spendable money but more like "gold"... You wouldn't spend it unless you really need it. But likewise, the merchants wouldn't really care if they get paid in fiat or crypto, so why should they help promote bitcoins and give a discount for using them? That doesn't make sense either... In the end, if we wish for a world were btc is more commonly used and far more valuable, we have to make some sacrifices if you know what I mean..!

why not thats great idea promote bitcoin and give discount for using them, sacrifice but the return benefits to us good impact, marketing strategy for bitcoin help bitcoin to adopt more people and country's as fiat currency in the cryptoworld.

[marketprice]

So at what point would people here feel comfortable using bitcoin as a currency?  What price would make it acceptable?  Does it have to do with the number of people who have adopted bitcoin?  Price stability?  What?

It varies with each person but a good rule of thumb is the following:

Once you have enough BTC where pulling out no more than 4% per year in fiat equivalent will allow you to live a great life, then you can start spending.

[iamTom123]

I see more and more merchants accepting Bitcoin but I feel many are missing the point. I, along with the vast majority of you, hate spending my Bitcoin. The only reason I would spend Bitcoin is if I can get a 20%+ discount on an item or service that I would be purchasing anyway. This also assumes I can immediately purchase more BTC to cover what I spent. I have done this before for purchases on Purse, then buying the BTC right back on Coinbase. The headache alone is hardly worth it. So merchants! It's great that you accept BTC but give us a compelling reason to spend it at your establishment, otherwise we really don't care.

This is actually the direct result of too much speculation on Bitcoin. Now, am not saying that there is something wrong with what you are doing. We are all becoming speculators here and this is the reason why we find it hard to spend our Bitcoin because we are all thinking that the value would rise big soon and that months from now the value differential can be huge. So it can become a challenging on the part of the merchants dealing with volatility among other things they are tending everyday.

I am hoping that soon there can be an easy platform or facility that will help merchants accepting Bitcoin as part of their mode of payments. Hey, it can be a good business if there can be a service like that offering a bridge between merchants and the many consumers using Bitcoin in conjunction with volatility and other concerns.

Despite that fact that a big portion of Bitcoin holders is treating it more as a store of value just like the physical gold, we should never forget that it must also be accepted as a currency.

[JaredStein]

So at what point would people here feel comfortable using bitcoin as a currency?  What price would make it acceptable?  Does it have to do with the number of people who have adopted bitcoin?  Price stability?  What?

That's right, it's just in the store of value stage, I'm waiting for it to become a medium of exchange worldwide and I think that it'll take central bank failures before that happens.

[davids]

why you do not buy it with fiat if you do not want to spend your bitcoin. 20% would be a huge discount rate it wouldn't be profitable for the merchant as well altough. One reason they accepted bitcoin is because of demands and request.

[xamil]

yeah, there are many transaction and store accepting bitcoin but if we use it as today maybe we need to think twice because now is the time to buy bitcoin if you have extra money I think bitcoin is a right way to invest just trust and wait until the bitcoin price will increase then that is the right time to spend some of your bitcoin.

[Rahar02]

This become a common problem for bitcoiners, but imagine if you're on the other side as a merchant owner.
Consider few things; how if someone spend bitcoin to buy some goods which costs BTC1 worth $3870 but it takes 1 hour to get 6 confirmation, and then 1 hour later bitcoin price drop to $3000, is it a big loss right?
That's why people, whether spenders and merchants owners still doubt to spend/accept bitcoin payment, unless there is third party such as BitPay as middleman to process transaction immediately convert to fiat currency, but it will cost even more to pay fees.