Is it more cost-effective to spend Bitcoin than to save it?

[hnmpy222]

Patrick van der Meijde, one of the founders of the "City of Bitcoins" Arnhem project, outlined in this article why bitcoins are more cost-effective to store than to spend:

I don't want to spend my bitcoin because I believe it will become more valuable in the future.

This sounds reasonable for many Bitcoin followers, but as one of the founders of the "City of Bitcoins" Arnhem project, I'll tell you that there is a lack of foresight to do this, and you can spend it on daily expenses. Profit from using Bitcoin.


Let's compare the daily practices of two people who believe Bitcoin will appreciate in the future. Suppose they have a BTC in the cold wallet (currently RMB 51,000), and they need to spend about 1000 euros (RMB 7,765) per month. They happen to live in Arnhem, where more than 100 stores accept Bitcoin.

Alice knew that half of her daily expenses could be spent on BTC in stores that accept Bitcoin. Therefore, after receiving salary each month, she will buy 500 Euros (3,882 Yuan) of Bitcoin, transfer it to her mobile wallet, and then spend it in the store that accepts Bitcoin. At the same time, Bob only uses his euro to pay for his daily expenses.

Due to the volatility of the price, she must supplement the balance in the mobile wallet more frequently when the Bitcoin price goes down, but she does not have to recharge her mobile wallet for a longer period of time as the Bitcoin rises.

If Bitcoin, as they all believe, will become more valuable in the long run, then Alice gets more money in the way of spending money than Bob because Bob's spending costs 1,000 per month. The euro, but in the long run, Alice’s way of spending money is even more economical, and her Bitcoin amount in the cold wallet is the same as Bob’s.

So, you can save money by using Bitcoin. In fact, there is no legal currency. Only Bitcoin (all expenses can be paid in Bitcoin) can get a lot of revenue when Bitcoin prices rise. Of course, if Bitcoin's price collapses, the person's risk is also greatest.

But I don't think it is illogical for the currency person to use Bitcoin because you believe it will appreciate. The stronger your faith, the less legal currency you have. If you don't have to keep the legal currency for your daily expenses, it would be better.

Even more days of bombing, you will show people their daily payment functions every time you make a Bitcoin payment. When the store pays in bitcoin, I often ask other customers various questions. Bitcoin is so close to them that they will not only be surprised at this but will also arouse their curiosity.

I also want to say, of course, that people have very little incentive to use Bitcoin for payment. Because using a debit card to make payments in the Netherlands is already very easy, just swipe your card to complete the payment. However, it should be noted that the current advantage of Bitcoin is global payments, not local payments.

But don't forget our original intention as followers of Bitcoin: Let more people become familiar with Bitcoin and tell them why Bitcoins are better than the legal currency. Although the legal currency may now be more convenient in most cases, this status quo may change. For some visitors, using bitcoin to pay is much more convenient than using local currency.

[Xester]

It all depends on when you have bought your bitcoins. When you bought your bitcoins at a very low value then you can sell them anytime if you want since you will have profit anyway. But the big question is that if you have just recently bought bitcoin at 20k$ then the huge challenge occurs since if you hold your bitcoin you may have a chance to gain or to meet another losses; or you can sell bitcoins and lost a profit and capital but you will not lost all. So the answer will really depend on your situation and so be careful on accepting any suggestions.

[Botiki55]

every man for himself to decide that, for example, I keep Bitcoin. but sometimes I have to withdraw from my wallet if there is a sharp shortage of money