Spend Your Fiat, Save Your Bitcoin!
What Are You Doing with Your Bitcoin?
Bitcoin has changed my families life and I know it has helped many of you as well. When I was growing up my family taught me that we must pay ourselves first. This meant taking a portion of my earnings and immediately put 10-30% away for a rainy day.
Back then you could keep your fiat money in the bank and earn interest on it but today you are punished through a nefarious tax called inflation. If you keep your fiat money in savings your buying power decreases steadily over time.
Bitcoin is Deflationary.
Bitcoin over time will be created less and less until we get to the final amount of 21 million BTC. This is highly deflationary! Credit Suisse estimates that there are 35 million millionaires on the planet. What happens if they all want one whole Bitcoin? My point is there is going to be a point when the world is going to rush into Bitcoin.
What I do with my Bitcoin.
- We Take a portion of our earnings buy Bitcoin.
- We buy every week and do not worry about the value fluctuations.
- We store our Bitcoin offline.
What I do with my fiat currency.
- We keep just enough to pay our bills.
- We pay contractors.
- We go to the casino!
Spend Fiat, Save Your Bitcoin.
Very true. Many times, I invested my "increased dollar value" BTC into mining, but looking back it would have been better if I bought an equal amount of BTC invested from fiat, so my investment comes from FIAT, not BTC. Looking back, just holding on to the BTC would have provided better returns than mining :)
I usually follow this advice. However, there have been a couple of tough financial spots that necessitated the selling of some bitcoin for my family. I regret it because it would be worth more now, but looking back, I'm glad the bitcoin was there.
Reason why I am buying also Gold and Silver to save something... I tend to spend the BTCs when needed like you, it is so easy.
Another reason it is wise to have cryptocurrency available. I've sold a few ETH after the price went up, though I should have sold less. Truth is, it is liquid and available much faster than fiat in a pinch.
Very true, Bitcoin is gold 2.0 , which has got amazing store value... everyone must save at-least 1 bitcoin for the future.
If they start with a little it helps.
Yes, they can start with little but must set target of accumulating 1 BTC.
While those who are just getting started should strive to get as much as they can responsibly afford, I suggest getting a minimum of two BTC (one for usage in the future, and one for long term investment). Store of value is one angle, but if fiat collapses over time, you might NEED BTC or other crypto for day-to-day needs.
People get too worked up over daily fluctuations. If you believe in Bitcoin the fluctuations shouldn't bother you, especially if you think Bitcoin is undervalued.
We should remember that Bitcoin is still very young in the global and economical adoption curves. We're still in price discovery mode and will be for a while. Supply and demand will run its course. If BTC solves its scalability without losing too much market share to competitors, we'll be rewarded in spades for our vision and faith.
@hilarski,
You are absolutely correct my dear friend! Actually this is what we are doing now :D Storing BTC and collecting more.
Really appreciate your effort to share those valuable details with us!
Cheers~
I've been kicking myself for years and now I'm finally doin it. Purchased silver in the past but now cryptos. Just started a few days ago. Every payday I'm goin to pay myself like you stated. I'm so sick of looking at how much the gov steals from hardworking Americans as myself. No more 401k cryptos all the way.
Silver was my first real investment. Bitcoin was an easy migration.
i need your advice, Hilarski. Should i convert my gold into bitcoin or have both of them?
I am with you. Great list of things to with bitcoin and fiat
Nice read. Would take this advise as well. :) Thank you.
This is so timely. My husband and I have been tempted to cash in some of our bitcoin and other cryptocurrency to pay down some small debts. But I think we need to change our mindset and keep looking at Bitcoin as a longer term investment, like a retirement fund.
That is what we are doing.
Great Post! So few these days have the mentality to save for the future. Your upbringing was like mine. 80% of mine is long term. I have to say when BTC hit $4400 a bit ago, I did sell a couple to lock in profits. But that was only a small amount of my overall stack.
Good Read.
Bitcoin Is the Next Big Thing in Tech - Fortune.