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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 t
by 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 agoWell, 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 agoWhat 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 agoActually there is a big wave of people using Bitcoin powered Visa cards right now to buy stuff