My strategy - buy and spend

[steveme]

Rather than obsessively checking the price and seeing if my coins have increased in value all the while kicking myself about not getting out at the peak (a.k.a HODLing), I've hit upon a new method for growing the bitcoin ecosystem and thus hopefully the value:

I bought some bitcoin (from an ATM in Manchester, UK) and have spent them on a new Raspberry pi, some beers and a few DVD's. As the value has increased, I got the stuff I wanted at a reduced price - double win 

I believe in the future promise of bitcoin as a payment system but it's not going to grow unless it's used - stop trying to get rich and just use them!

[stonerider]

You must be new here. HODL doesn't mean "getting out at the right time." HODL means to clutch those bitcoins tighter in your fist as the price declines ever lower.

[Morecoin Freeman]

I'm primarily a trader, but since I'm also a bitcoin enthusiast I always have some amount on my phone like $50-$200. The problem is I only got to spend some once. It felt amazing though.

Sometimes I ask in stores and restaurants if they accept bitcoin as a payment option too. Hope my coins will be of more use in the near future.

[steveme]

You must be new here. HODL doesn't mean "getting out at the right time." HODL means to clutch those bitcoins tighter in your fist as the price declines ever lower.

same misguided affliction. It's not going to take off if they're locked in a cold wallet.



“A ship is safe in harbor, but that's not what ships are for.”

― William G.T. Shedd

[bri912678]

Rather than obsessively checking the price and seeing if my coins have increased in value all the while kicking myself about not getting out at the peak (a.k.a HODLing), I've hit upon a new method for growing the bitcoin ecosystem and thus hopefully the value:

I bought some bitcoin (from an ATM in Manchester, UK) and have spent them on a new Raspberry pi, some beers and a few DVD's. As the value has increased, I got the stuff I wanted at a reduced price - double win 

I believe in the future promise of bitcoin as a payment system but it's not going to grow unless it's used - stop trying to get rich and just use them!

Did you have to give ID to buy them at an ATM, and did you pay with cash? I have never used an ATM before. Where does the price you pay come from, is it based on an exchange's price?

[Amph]

You must be new here. HODL doesn't mean "getting out at the right time." HODL means to clutch those bitcoins tighter in your fist as the price declines ever lower.

that just one definition, another one is that hold mean you don't spend until bitcoin becomes mainsream and you can use it directly

so far now my strategy is to hold indefinitely

[JimboToronto]

Did you have to give ID to buy them at an ATM, and did you pay with cash? I have never used an ATM before. Where does the price you pay come from, is it based on an exchange's price?

The ATM that I use regularly (Bitaccess) does not require ID, just a phone number to which it can send an access code via text message.

You then enter the code into the ATM and you're ready to buy or sell bitcoins. If you don't have a wallet it will create a paper wallet for you, or you can scan the QR code of the public key of the wallet of your choice, be it a paper wallet or a wallet app on a phone or other mobile device.

The price is determined by bitcoinaverage.com +/- a fee for the ATM operators. This fee is usually between 5% and 7.5% depending on the operator.

I've never had a problem with it yet. The main drawback is the fee but if you consider the exchange fee, the cost of transferring fiat via a bank and the time it takes, it's a small price to pay for the convenience and instant service, especially for smaller amounts.

An added bonus is that the transaction is as anonymous as the phone you use to receive the access code. There's a limit of $3000/day per phone number to comply with KYC/AML regulations, but that isn't a problem if you have multiple phones.

Only cash is accepted and dispensed, no credit/debit cards or other plastic.

I hope this helps.

[MatTheCat]

I believe in the future promise of bitcoin as a payment system but it's not going to grow unless it's used - stop trying to get rich and just use them!

What if I don't want Bitcoin to succeed because I think the whole technology is taking us towards having little scannable digital wallets installed in our wrists?

[piramida]

You must be new here. HODL doesn't mean "getting out at the right time." HODL means to clutch those bitcoins tighter in your fist as the price declines ever lower.

same misguided affliction. It's not going to take off if they're locked in a cold wallet.



“A ship is safe in harbor, but that's not what ships are for.”

― William G.T. Shedd

Same misguided belief that you do know what bitcoin is for. You seem to believe that it's for transfering your fiat across the internet and somehow think that it's the main and only purpose of it. However, you are infinitely far from the truth, which noone actually knows fully - we are now a bunch of monkeys with an electronic microscope. Sure, you can crack coconuts with it, but smarter monkeys have a vision that it might be used for more. And that you don't need to crack open every coconut with it to get there.

[bitfilliates]

Rather than obsessively checking the price and seeing if my coins have increased in value all the while kicking myself about not getting out at the peak (a.k.a HODLing), I've hit upon a new method for growing the bitcoin ecosystem and thus hopefully the value:

I bought some bitcoin (from an ATM in Manchester, UK) and have spent them on a new Raspberry pi, some beers and a few DVD's. As the value has increased, I got the stuff I wanted at a reduced price - double win 

I believe in the future promise of bitcoin as a payment system but it's not going to grow unless it's used - stop trying to get rich and just use them!

You should learn how to HODL, not how to spend.

[Q7]

I think when there's a good deal whereby the sites offer discount if paying in bitcoin, then just pay in bitcoin. Hodling on without spending might not be healthy towards the economy as what most people would think. Ideally, it would be to spend and then buy back whatever spent to cover that amount used up.

[AtheistAKASaneBrain]

Rather than obsessively checking the price and seeing if my coins have increased in value all the while kicking myself about not getting out at the peak (a.k.a HODLing), I've hit upon a new method for growing the bitcoin ecosystem and thus hopefully the value:

I bought some bitcoin (from an ATM in Manchester, UK) and have spent them on a new Raspberry pi, some beers and a few DVD's. As the value has increased, I got the stuff I wanted at a reduced price - double win 

I believe in the future promise of bitcoin as a payment system but it's not going to grow unless it's used - stop trying to get rich and just use them!

I sometimes spend it on the street to have a nice coffee with waffles and whatnot, nothing too big, otherwise I feel like im wasting Bitcoin (feels like paying gold, something too valuable to be used as filthy fiat).

[bri912678]

Did you have to give ID to buy them at an ATM, and did you pay with cash? I have never used an ATM before. Where does the price you pay come from, is it based on an exchange's price?

The ATM that I use regularly (Bitaccess) does not require ID, just a phone number to which it can send an access code via text message.

You then enter the code into the ATM and you're ready to buy or sell bitcoins. If you don't have a wallet it will create a paper wallet for you, or you can scan the QR code of the public key of the wallet of your choice, be it a paper wallet or a wallet app on a phone or other mobile device.

The price is determined by bitcoinaverage.com +/- a fee for the ATM operators. This fee is usually between 5% and 7.5% depending on the operator.

I've never had a problem with it yet. The main drawback is the fee but if you consider the exchange fee, the cost of transferring fiat via a bank and the time it takes, it's a small price to pay for the convenience and instant service, especially for smaller amounts.

An added bonus is that the transaction is as anonymous as the phone you use to receive the access code. There's a limit of $3000/day per phone number to comply with KYC/AML regulations, but that isn't a problem if you have multiple phones.

Only cash is accepted and dispensed, no credit/debit cards or other plastic.

I hope this helps.

Thanks, the 5% to 7.5% fee sounds like the only drawback, but if you want to do things fast an ATM can't be beaten. Getting bank transfers to exchanges can take forever, and some banks are closing people's accounts for having anything to do with Bitcoin.

[redsn0w]

What is the purpose of a currency? I know bitcoin is not only a currency, but the real purpose is to "spend it" not to hodl or hold."Money is a means of payment, not speculation"; however at the end everyone of use have a different opinion of what is a currency/money.

[steveme]

Did you have to give ID to buy them at an ATM, and did you pay with cash? I have never used an ATM before. Where does the price you pay come from, is it based on an exchange's price?

It was this one:

http://coinatmradar.com/bitcoin_atm/299/bitcoin-atm-lamassu-manchester-cex-store-manchester-arndale/

bitpay price, 0% fees, no ID required. Just feed it with cash.

[maku]

Op. It seems that your general idea is just to use bitcoin on daily basis and I can agree with you. The problem of this solution is however volatile bitcoin nature. As you may know not that long ago bitcoin price was just about around $200 now we are almost at $300. For many people who remember 'old' higer bitcoin price this is unacceptable to spend bitcoin now.

[steveme]

You must be new here. HODL doesn't mean "getting out at the right time." HODL means to clutch those bitcoins tighter in your fist as the price declines ever lower.

same misguided affliction. It's not going to take off if they're locked in a cold wallet.



“A ship is safe in harbor, but that's not what ships are for.”

― William G.T. Shedd

Same misguided belief that you do know what bitcoin is for. You seem to believe that it's for transfering your fiat across the internet and somehow think that it's the main and only purpose of it. However, you are infinitely far from the truth, which noone actually knows fully - we are now a bunch of monkeys with an electronic microscope. Sure, you can crack coconuts with it, but smarter monkeys have a vision that it might be used for more. And that you don't need to crack open every coconut with it to get there.

Very profound. So the right strategy (in your opinion) would be to hoard them and hope they become useful for something in the future, the theory being that the more you have the better (for you)?

In my opinion, using them in a primitive bartering society style (swapping them for goods and/or services) is more likely to drive adoption and expand usage.

If they're used more they will become more desirable to possess and therefore scarce, which will in turn increase their value (in cash terms)

[neurotypical]

Op. It seems that your general idea is just to use bitcoin on daily basis and I can agree with you. The problem of this solution is however volatile bitcoin nature. As you may know not that long ago bitcoin price was just about around $200 now we are almost at $300. For many people who remember 'old' higer bitcoin price this is unacceptable to spend bitcoin now.

Thats why I treat bitcoin like gold and I wouldn't go around doing groceries and having a cup of coffe paying with gold. I'll let these damn whales do the spending for now, when the price stabilizes at 100K i'll do some shopping.

[steveme]

Op. It seems that your general idea is just to use bitcoin on daily basis and I can agree with you. The problem of this solution is however volatile bitcoin nature. As you may know not that long ago bitcoin price was just about around $200 now we are almost at $300. For many people who remember 'old' higer bitcoin price this is unacceptable to spend bitcoin now.

Thats why I treat bitcoin like gold and I wouldn't go around doing groceries and having a cup of coffe paying with gold. I'll let these damn whales do the spending for now, when the price stabilizes at 100K i'll do some shopping.

I was mining them when they were $5. I 'wasted' what would now be a fortune on computer games and random gadgets. I watched the price jump in April 13 and again in Dec 13. I watched it drop, drop and drop some more.

It's not going back to $1000 anytime soon IMO. I've seen all sorts of random predictions and TA theories that never panned out in this sub.

I've got a few stashed, and I've bought some to spend just to actually participate in the great bitcoin 'experiment' (holding is boring, and I needed a new RasPi)


If we're in the long tail and it gradually falls to $0.00 then at least I've had something out of it (I could have had more, or I could have had zero)

If we're experiencing the beginning of an organic growth period where we see a steady increase in value then I also win.


If there's something you want to buy, consider paying with bitcoin. Either buy BTC specifically for the purchase, or use your holdings and put it back later.
It might end up costing you a faction more or less than a cash purchase, but at least you'll have used it for something. 5 years from now you can joke about how you 'wasted' BTC on some pointless purchase, just like the 10,000 BTC pizza in 2010.

[JimboToronto]

Did you have to give ID to buy them at an ATM, and did you pay with cash? I have never used an ATM before. Where does the price you pay come from, is it based on an exchange's price?

It was this one:

http://coinatmradar.com/bitcoin_atm/299/bitcoin-atm-lamassu-manchester-cex-store-manchester-arndale/

bitpay price, 0% fees, no ID required. Just feed it with cash.

No fees sounds great, but how do the operators earn any money?

I know that Bitpay offers zero fees to merchants, so obviously it's customers who foot the bill.

Last time I checked, Bitpay's price was the same as the Bitcoinaverage price. How do they manage this?