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What do you call someone who bought a pizza with BTC last year? Paper hands? Shouldn’t they have hodled and not had pizza? How can this be a currency.
by chowchowchow 2y ago
What do you call someone who bought a pizza with BTC last year? Paper hands? Shouldn’t they have hodled and not had pizza? How can this be a currency.
- chii 2y ago> Shouldn’t they have hodled and not had pizza? but then starved to death while hodling?
- chowchowchow 2y agoI don’t know that’s what I’m asking! Should you only spend your money in life or death situations in a btc economy?
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- desumeku 2y agoIf BTC was widely used as a currency then it would not be subject to nearly as much speculation. I don't know why this needs to be pointed out.
- chowchowchow 2y agoIs that a fact? Any substance you'd care to offer or just leaving that assertion hanging?
- desumeku 2y agoIntuition. If the majority of bitcoin usage was for transactions involving services and goods instead of speculative investment, there's a pretty strong case for a wager that the impact of speculative investment on its price would decrease. I don't personally believe this will ever happen. BTC has too much legacy cruft. The "digital gold" narrative won out. Day-to-day transactions will happen in a newer, perhaps not invented yet crypto.
- chowchowchow 2y agoI agree but that’s like saying if my grandma had wheels she’d be a wheelbarrow innit? BTC is not set up to ever be a reasonable currency. Agree digital dollars is where we’re headed.
- liontwist 2y agoI don’t own any btc. But I’m wondering why there is so much FUD about currency that doesn’t inflate.
- chowchowchow 2y agoThe problem is a currency which is also considered a precious good. It’s like using diamonds as the medium of exchange. Gold is far from the most valuable commodity, and silver even less so. So I think it means we should use some other crypto than BTC if we want to have it be a currency.
- liontwist 2y agoThe utility of the money is in how you spend it. Your same question could be asked about the S&P. Why would anyone sell? Well at some point in your life you want to use the money to accomplish your life goals
- chowchowchow 2y agoYou should not sell your shares in the S&P 500 to buy pizza unless your financial situation changes drastically for the worse or I guess maybe you are near death. As I said in the other thread, the problem is that btc is too desirable in the market to be a functioning currency and using it for pizza or impulsive daily purchases is a nonstarter in reality.
- liontwist 2y agoBut you’re wrong. People sell S&P and BTC everyday even if they aren’t dying. This is time value of money. If I wait 20 years instead of buying a house, I can have more money. But that’s 20 years of my life I didn’t live in the house I wanted. I could invest more in S&P and not go on vacation, but then I won’t have as much time to go on vacations. Goods and services now can be more valuable than money later, and that’s why people sell. And that’s why deflationary currency is fine.
- chowchowchow 2y agoI notice you mentioned big ticket purchases which I specifically did not mention. Your argument looks a bit different if you replace houses and vacation with lattes and sneakers. We live in a consumer economy where a marginal drag on purchasing activity due to currency deflation would probably be pretty disruptive to put it mildly.
- liontwist 2y agoIf you’re arguing that people would think harder about their purchases and frivolous spending would decline. I agree. And I think that’s a benefits If you’re asking if people would not use their deflating currency to buy lattes and sneakers, I disagree. People like sneakers and lattes more than money. They prove this everyday by buying them instead of s&p. There is an issue of the cost of a transaction - which nis bad for btc and s&p. Nobody wants a tax form for buying a pizza. But the regulatory environment creating high selling costs is orthogonal to the deflationary property.