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The idea of using Bitcoin at this point in time to physically purchase goods and services is ridiculous given the speed of speculation. Hypothetically, why sho

by canistr 13y ago

The idea of using Bitcoin at this point in time to physically purchase goods and services is ridiculous given the speed of speculation. Hypothetically, why should I pay someone 0.5 BTC at $1000/BTC if in a couple of days I know it's going to rise to $1000+/BTC? Obviously the seller is betting on their value going up, but at this point, there's no reason to do anything except hold onto your BTC until the market actually stabilizes or even crashes.

giarc 13y ago
In 2010 a guy paid 10,000 BTC for 2 pizza's, probably roughly equivalent to $40. 10,000 BTC today = $10.5 million USD.
- canistr 13y ago
  Which is precisely my point. What incentive is there for the buyer to spend their BTC if the future value will dwarf the present value of the good they are spending it on?
  - ElbertF 13y ago
    What incentive is there for the buyer to spend their money on anything if they could be buying Bitcoin?
- hcarvalhoalves 13y ago
  > 10,000 BTC today = $10.5 million USD Does that valuation mean anything? What about liquidity? If I had 10 k BTC today, could I trade that for $ 10.5 M on the spot? http://buttcoin.org/easy http://buttcoin.org/easy
user24 13y ago
This question comes up frequently. The best thing to do if you want to buy something for $500, is buy $500 in bitcoin and then pay with bitcoin. This way your 'stash' isn't eroded and you contribute to the bitcoin economy.
- canistr 13y ago
  Then what you're proposing eliminates the fundamental purpose of using Bitcoin over existing currency. Why pay transaction fees to an exchange if I can pay zero fees with cash or use a service like Dwolla in which the fee is significantly cheaper than an exchange fee?
  - user24 13y ago
    > Why pay transaction fees to an exchange if ... Because you want to support bitcoin. If you don't want to pay with bitcoin, don't. If you do want to support bitcoin but don't want to erode your savings, then do this.
  - heliodor 13y ago
    Because the 3% credit card fee is already baked into the price of goods you buy. You just don't realize it because merchants are not allowed to visibly offer a cash discount or charge a credit card fee.
    - gaadd33 13y ago
      In many states a merchant can charge a credit card fee. http://www.practicalecommerce.com/articles/3894-U-S-Merchants-Can-Now-Charge-for-Credit-Card-Transactions http://www.practicalecommerce.com/articles/3894-U-S-Merchant...
Andrew_Quentin 13y ago
Well, why do you buy anything instead of putting all your money in bitcoin? If your money is bound to increase, then why spend any of it? I mean - why eat?

by canistr 13y ago

giarc 13y ago

In 2010 a guy paid 10,000 BTC for 2 pizza's, probably roughly equivalent to $40. 10,000 BTC today = $10.5 million USD.

canistr 13y ago
Which is precisely my point. What incentive is there for the buyer to spend their BTC if the future value will dwarf the present value of the good they are spending it on?
- ElbertF 13y ago
  What incentive is there for the buyer to spend their money on anything if they could be buying Bitcoin?
hcarvalhoalves 13y ago
> 10,000 BTC today = $10.5 million USD Does that valuation mean anything? What about liquidity? If I had 10 k BTC today, could I trade that for $ 10.5 M on the spot? http://buttcoin.org/easy http://buttcoin.org/easy

user24 13y ago

This question comes up frequently. The best thing to do if you want to buy something for $500, is buy $500 in bitcoin and then pay with bitcoin. This way your 'stash' isn't eroded and you contribute to the bitcoin economy.

canistr 13y ago
Then what you're proposing eliminates the fundamental purpose of using Bitcoin over existing currency. Why pay transaction fees to an exchange if I can pay zero fees with cash or use a service like Dwolla in which the fee is significantly cheaper than an exchange fee?
- user24 13y ago
  > Why pay transaction fees to an exchange if ... Because you want to support bitcoin. If you don't want to pay with bitcoin, don't. If you do want to support bitcoin but don't want to erode your savings, then do this.
- heliodor 13y ago
  Because the 3% credit card fee is already baked into the price of goods you buy. You just don't realize it because merchants are not allowed to visibly offer a cash discount or charge a credit card fee.
  - gaadd33 13y ago
    In many states a merchant can charge a credit card fee. http://www.practicalecommerce.com/articles/3894-U-S-Merchants-Can-Now-Charge-for-Credit-Card-Transactions http://www.practicalecommerce.com/articles/3894-U-S-Merchant...

Andrew_Quentin 13y ago

Well, why do you buy anything instead of putting all your money in bitcoin? If your money is bound to increase, then why spend any of it? I mean - why eat?