Bitcoin and the Path of Least Resistance

[Creepings]

I am not a fan of saving but I know it is better than spending. Bitcoin is a currency so I don't think we can spend these the same as the fiats. But the thing here is that people tend to think that it is better to save it than to spend it, which is the principle of the Least Resistance.

I am not saying spending it on things you unnecessarily need, if you will be asking how rich people spend their money, they spend this on assets. Assets that in time, give back money and also profit, investing in short. So, what is the connection of the least resistance and the spending of digital currency? Think of this.

People is thinking it is better to save this digital currency because it will be easier to wait a profit from pumps, than making a way to earn more money by spending those digital currencies. We are just like waiting for a rainbow to come after rain, but in some cases, we can make the rainbow appear, can you give some if your opinion in this?

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[FlightyPouch]

Well, you can stop people from doing thing they usually do, more importantly, a lot of people do things or finds a way to earn more money other than saving and waiting for a pump but there are people who take advantage of that creating a scheme for them to earn easy money.

You can just say that because maybe you do not know how a victim feel when they get scammed, they become really scared in investing and instead of investing, they just buy bitcoin and wait for it to pump.

[Creepings]

Well, you can stop people from doing thing they usually do, more importantly, a lot of people do things or finds a way to earn more money other than saving and waiting for a pump but there are people who take advantage of that creating a scheme for them to earn easy money.

You can just say that because maybe you do not know how a victim feel when they get scammed, they become really scared in investing and instead of investing, they just buy bitcoin and wait for it to pump.

I do know how it feels, but the thing is, if you really want to get a good profit, you will be sticking into something that may not happen, bitcoin is volatile, and it is also unpredictable we do not know if this currency will really pump or dump. I was scammed once but I continue investing because I just see that scam as my mistake.

[kueyen]

Even if you want to invest your money elsewhere, it is very difficult to find a method which would yield returns as high as bitcoin is currently doing. If there were better examples available, I'd agree with you to cash out some of your coins and invest elsewhere, but since bitcoin is still going strong, you'd be hard pressed to find an alternative which is as profitable.

[Yakamoto]

I am not a fan of saving but I know it is better than spending. Bitcoin is a currency so I don't think we can spend these the same as the fiats. But the thing here is that people tend to think that it is better to save it than to spend it, which is the principle of the Least Resistance.

I am not saying spending it on things you unnecessarily need, if you will be asking how rich people spend their money, they spend this on assets. Assets that in time, give back money and also profit, investing in short. So, what is the connection of the least resistance and the spending of digital currency? Think of this.

People is thinking it is better to save this digital currency because it will be easier to wait a profit from pumps, than making a way to earn more money by spending those digital currencies. We are just like waiting for a rainbow to come after rain, but in some cases, we can make the rainbow appear, can you give some if your opinion in this?

Is spending the path of least resistance though? I would say saving is because you tuck it away and it appreciates in a way that you never have to interact with it. Spending would be the next path, since you acquire some good which depreciates but you likely have to also take care of it for the good to be preserved over a fair amount of time. Investing is then the path of most resistance, as it requires time and attention but can yield far better profits than the other two options. This is the same for digital currencies, and probably more so since investing is a complex process in such a marketplace.

[Pursuer]

I like to believe that there are two things that are currently preventing bitcoin from being a currency, in other words make people want to save it instead of spending it.

one of them is obviously the rising price. which is something expected because bitcoin is on the path of most adoption -pun intended- and that means the price will continue rising like this for a long time to come. that creates the incentive to hold rather than spend.
this will go away when price is more stable.

the other thing is high fees. part because of rising price and part because of limited block space and large number of daily transactions.
this hopefully will be fixed as things like LN come to action but we will always have this limit.

in the end I have to say people are spending bitcoin. actually it is surprising to see how much more bitcoin they are spending as the price rises. there was a good post on bitpay blog about this. they released their yearly stats showing how much people are spending bitcoin year month that price rises! make sure to give it a read.

[no0dlepunk]

I am not a fan of saving but I know it is better than spending. Bitcoin is a currency so I don't think we can spend these the same as the fiats. But the thing here is that people tend to think that it is better to save it than to spend it, which is the principle of the Least Resistance.

I am not saying spending it on things you unnecessarily need, if you will be asking how rich people spend their money, they spend this on assets. Assets that in time, give back money and also profit, investing in short. So, what is the connection of the least resistance and the spending of digital currency? Think of this.

People is thinking it is better to save this digital currency because it will be easier to wait a profit from pumps, than making a way to earn more money by spending those digital currencies. We are just like waiting for a rainbow to come after rain, but in some cases, we can make the rainbow appear, can you give some if your opinion in this?

In my opinion, unless the bitcoin has reached it's stable price, don't spend too much of it, save as much as you can, instead... there are still lots of people who aren't in bitcoins yet, so these people are going to be a huge fluctuation to bitcoin price. The actual gameplan should be - wait until bitcoin is globalized, and then spend it like a regular money.

[aso118]

I am not a fan of saving but I know it is better than spending. Bitcoin is a currency so I don't think we can spend these the same as the fiats. But the thing here is that people tend to think that it is better to save it than to spend it, which is the principle of the Least Resistance.

I am not saying spending it on things you unnecessarily need, if you will be asking how rich people spend their money, they spend this on assets. Assets that in time, give back money and also profit, investing in short. So, what is the connection of the least resistance and the spending of digital currency? Think of this.

People is thinking it is better to save this digital currency because it will be easier to wait a profit from pumps, than making a way to earn more money by spending those digital currencies. We are just like waiting for a rainbow to come after rain, but in some cases, we can make the rainbow appear, can you give some if your opinion in this?

In my opinion, unless the bitcoin has reached it's stable price, don't spend too much of it, save as much as you can, instead... there are still lots of people who aren't in bitcoins yet, so these people are going to be a huge fluctuation to bitcoin price. The actual gameplan should be - wait until bitcoin is globalized, and then spend it like a regular money.

I think for each transaction we have to take a call.
1) I can use bitcoins for this transaction. I can then buy back some bitcoins using fiat at an exchange.
2) I can use fiat for this transaction.
If we plan to hold bitcoins, both the above steps are equivalent as far as bitcoins are concerned. Now we just have to figure out which is cheaper. If somebody offers good discounts for using bitcoins, you should go for it.

[Janation]

Even if you want to invest your money elsewhere, it is very difficult to find a method which would yield returns as high as bitcoin is currently doing. If there were better examples available, I'd agree with you to cash out some of your coins and invest elsewhere, but since bitcoin is still going strong, you'd be hard pressed to find an alternative which is as profitable.

I think this is the point that the OP is pointing out. Path of Least Resistance is talking about how people think these days.

It means that we people just go in a way that is convenient to us, the thing that is easier to do but there are other things that can be done that will result in to a better one. The path of least resistance is the more convenient and easy way with average result and the opposite of it is the full of effort way with the better result.

[aanbudi]

Everyone has their own thoughts. And in this world almost everyone prioritizes money as the main income. And we can not avoid it. This is an absolute cycle.

[bitart]

I am not a fan of saving but I know it is better than spending. Bitcoin is a currency so I don't think we can spend these the same as the fiats. But the thing here is that people tend to think that it is better to save it than to spend it, which is the principle of the Least Resistance.

I am not saying spending it on things you unnecessarily need, if you will be asking how rich people spend their money, they spend this on assets. Assets that in time, give back money and also profit, investing in short. So, what is the connection of the least resistance and the spending of digital currency? Think of this.

People is thinking it is better to save this digital currency because it will be easier to wait a profit from pumps, than making a way to earn more money by spending those digital currencies. We are just like waiting for a rainbow to come after rain, but in some cases, we can make the rainbow appear, can you give some if your opinion in this?

In my opinion, unless the bitcoin has reached it's stable price, don't spend too much of it, save as much as you can, instead... there are still lots of people who aren't in bitcoins yet, so these people are going to be a huge fluctuation to bitcoin price. The actual gameplan should be - wait until bitcoin is globalized, and then spend it like a regular money.

Some people are spending some of their bitcoins because they want to save themself from the risk of bitcoin price collapse. I mean that if you have a fixed amount of bitcoin, you have invested it some years ago. You want to make sure that you maximize the profit you can have but you also need to minimize the risk you take. In this scenario, it's understandable behaviour that someone priodically spends (cash out to fiat) e.g. 5% of his total bitcoin, because that's a realized profit and it's deducted from his initial investment. In this case he still has a good amount of bitcoin and his investment is still profitable, but after a while he get's back his initial investment (in fiat) and still have some bitcoin. After this point anything can happen with the price of bitcoin, his initial investment has already returned and the remaining bitcoin is the pure profit of this investment.