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I buy computer hardware (SSDs, network switches etc.), recently bought t-shirts and etsy like stuff on gethaven.app Bitcoin has always been pseudoanonymous and

I buy computer hardware (SSDs, network switches etc.), recently bought t-shirts and etsy like stuff on gethaven.app Bitcoin has always been pseudoanonymous and its perma history is something that I am aware off and not that bothered off. Though looks like the bitcoin devs are working towards something to improve privacy called taproot and schnorr. The thing that it solves for me compared to traditional fiat currencies is that it retains its value very well over a period of time. some of the bitcoin stuff I bought long back and spent it on hardware now means I got the hardware for nearly more than 500% cheaper if I had chosen to hold it in dollar or other fiat currencies. Fiat currencies are a liability (depreciating value) if you are not constantly trying to invest them just to keep their value from crashing due to accelerating money printing/inflation.

newbie789 6y ago
I think you might be one of a small handful of people that I've heard from that continue to use BTC as a currency for goods over the past few years. It's good to know that this still happens! Out of curiosity, you mention depreciating value for fiat being a liability, which is absolutely true. That being said, doesn't appreciation also create a different sort of liability? For example, let's say I buy a 1TB SSD for $60 worth of BTC on Monday, and then that same amount of BTC is worth $75 on Friday. In theory, would it be reasonable for me to feel like I've overpaid? Of course in this scenario, I pay for rent, food, taxes etc. using fiat, so I'm exposed to the difference in conversion rates. I suppose if I lived somewhere where I could transact wholly in BTC for everything and its value wasn't in any way tied to a fiat currency and the value of goods and services were negotiated in BTC in a way that's entirely decoupled from market value on exchanges, this wouldn't be an issue for me. Is this possible?
- wsc981 6y ago
  Well, instead of a liability, it could also be a feature. A mechanism that allows people by choice to reduce consumption, thus lowering their ecologic footprint.
- valzam 6y ago
  What you are describing is basically how any fiat currency is used, so it's definitely possible to live in bitcoin land. The issue is that price fluctuation for bitcoin is so extreme, not that you can buy other currencies with it. If on Monday 1 USD buys 1 EUR and on Friday it buys 2 EUR you would have "overpaid" as well for many goods that you could have imported and maybe more directly if you had invested in EUR denominated securities etc..
- biolurker1 6y ago
  Actually there is a big wave of people using Bitcoin powered Visa cards right now to buy stuff
mrh0057 6y ago
Go lookup currency deflation and what happens at the end. The transaction rate is to low and the energy use is to high to be useful. We are near the end stage when people and institutions start hoarding it. The current problem in fiat money is what the new money is funding. This is a society/government policy choice and isn't an inherent flaw in fiat money. In the west the money is primary used to boost asset prices instead of used for production.

newbie789 6y ago

I think you might be one of a small handful of people that I've heard from that continue to use BTC as a currency for goods over the past few years. It's good to know that this still happens! Out of curiosity, you mention depreciating value for fiat being a liability, which is absolutely true. That being said, doesn't appreciation also create a different sort of liability? For example, let's say I buy a 1TB SSD for $60 worth of BTC on Monday, and then that same amount of BTC is worth $75 on Friday. In theory, would it be reasonable for me to feel like I've overpaid? Of course in this scenario, I pay for rent, food, taxes etc. using fiat, so I'm exposed to the difference in conversion rates. I suppose if I lived somewhere where I could transact wholly in BTC for everything and its value wasn't in any way tied to a fiat currency and the value of goods and services were negotiated in BTC in a way that's entirely decoupled from market value on exchanges, this wouldn't be an issue for me. Is this possible?

wsc981 6y ago
Well, instead of a liability, it could also be a feature. A mechanism that allows people by choice to reduce consumption, thus lowering their ecologic footprint.
valzam 6y ago
What you are describing is basically how any fiat currency is used, so it's definitely possible to live in bitcoin land. The issue is that price fluctuation for bitcoin is so extreme, not that you can buy other currencies with it. If on Monday 1 USD buys 1 EUR and on Friday it buys 2 EUR you would have "overpaid" as well for many goods that you could have imported and maybe more directly if you had invested in EUR denominated securities etc..
biolurker1 6y ago
Actually there is a big wave of people using Bitcoin powered Visa cards right now to buy stuff

mrh0057 6y ago

Go lookup currency deflation and what happens at the end. The transaction rate is to low and the energy use is to high to be useful. We are near the end stage when people and institutions start hoarding it. The current problem in fiat money is what the new money is funding. This is a society/government policy choice and isn't an inherent flaw in fiat money. In the west the money is primary used to boost asset prices instead of used for production.