Would you actually pay for your next meal in crypto if you had the choice?
Would you be willing to spend your cryptocurrency right now in the "real world"?
If you are like me the answer would probably be "no". Most people would be very hesitant to buy goods in the real world using cryptocurrencies and for a good reason.
Inflationary FIAT money is losing value every day while deflationary Bitcoin and most other cryptos are rapidly gaining value. That pizza you paid in Bitcoin might in time turn out to be a very expensive meal.
Having the choice to either pay for your meal in FIAT or crypto it only makes sense to get rid of some more FIAT money, thus holding tight to your precious Bitcoin etc.
The effects of this psychological/logical reasoning are undoubtedly having an effect on the adoption of cryptocurrencies and blockchain technology.
What would, in fact, be the effect on the market when nobody would willingly part with their crypto in the real world while all circulating (everyday) currency would be the less valuable FIAT money?
First of all, I fear that it would slow down the mass adoption of cryptocurrencies. When no one is willing to spend Bitcoin for goods no shops would implement it as a valid payment method. This would be bad for the prices of cryptocurrencies in the short term.
On the other hand. More and more people will discover the value properties of the crypto world and see it as the logical way of safe keeping their wealth. The members of the growing crypto community will continuously channel more and more money towards cryptocurrencies while covering most of their expenditures in FIAT money.
This will most likely increase the likelihood of a FIAT money collapse. This collapse will force the rest of the population towards the more valuable currency and we will finally see mass adoption.
We would, in essence, see two financial ecosystems, one losing its value while the other gaining value, until a major collapse would force the masses to adopt the only logical system.
There might already be many use cases for cryptocurrency, but that would not amount to much if no one is willing to part with their crypto assets.
This article gives a good historical perspective if you would like to read more on the subject
Would you actually choose to spend your cryptocurrency right now on real life products?
I bought a steak and beer with Bitcoin at longhorn steakhouse a week ago.
It is awesome to hear stories of Bitcoin being used for products and services.
Would you regret it later on if Bitcoin rose to say $20.000?
I think everybody would regret (at list for a moment) knowing he bought something hugely overpriced.
And about 8 of 10 expert economists will say you that Bitcoin value will be growing in long run. So, if you buy something for Bitcoin today, you buy overpriced goods.
The current Bitcoin worldwide penetration is very low. There are different calculations, but most of them state not more than 25.000.000 people are having any kind of crypto-wallet (0.3% of population). Years will come until cryptocurrencies become widely used. I could only imagine people widely spending crypto when the penetration level is about 3-5%, meaning at least 10-15 times more than today. Until then it is better to save Bitcoin, as new Bitcoin users are continuing to push demand thus Bitcoin value up :)
Some people say that other cryptos may take a huge slice of pie from Bitcoin - but Lighting Network is coming soon, so Bitcoin should survive any pressure. Gold is gold for centuries, no matter how many options to invest we seen on its way. And Bitoin is like a crypto gold.
No one likes to buy overpriced products and this is why I fear that it might take a while before we will see cryptos as payment options in stores.
Which crypto coins will eventually become mainstream is not the most important thing for me. Bitcoin certainly looks like a good candidate for the future though.
Thank you for your great contribution to this discussion w-w-w!
Well, I don't really think we need to be afraid of slow store acceptance. Sorry for repeating this point, but if we take gold as an example - a few shops accept gold as payment option, but anyway it is one of the main saving options for centuries. Want to spend crypto in shops, fine, we have Steem Dollars which are about 1 USD and don't generally rise in price over time. A good crypto not to afraid overpriced products! :)
Nope, I expect it to eventually. I look at it as an investment in the crypto currency environment. If everyone holds, then acceptance will be prolonged. If businesses see the demand for use, they will accept it.
That is a noble gesture, thank you for that.
If demand is based on peoples willingness to "invest" in the adoption of the currency then I do foresee that it is an uphill battle though. But I might be wrong! (I sure hope I am wrong)
To be honest, no, no at the moment.
But I believe this will be normal in near future.
I couldn't agree more. I do see, however, that a big economic shift needs to occur before this is the new normal.
I think it depends on your position. If you are holding cryptocurrencies for profit and earn Fiat, then you would be hesitant to use your crypto... If you earn crypto and trade a little of it for Fiat for when you need to spend, then you would probably find it easier to have a direct connection to spend crypto.
I would love to be able to spend SBD for my expenses, personally.... It's a precarious situation and gets you asking what good is a currency if you cannot use it to buy? I would focus more on earning more crypto so that I won't regret spending some of my crypto
That is an excellent argument! Very few people, I guess, are currently earning their living from the blockchain, but as more people do the demand for real life use will increase.
The same goes for all the millionaires that are created from crypto holding and trading as time passes.
Thank you for your wise words!
For me, there's an interesting philosophical question there.
We call these things "currencies" and we are hopeful that they will become broadly adapted as challenges and alternatives to fiat money... but, at the same time, we cling to our coins as "investments" because recent history show skyrocketing prices.
But is something really a "currency" if we're not willing to release into an economic marketplace? And then the follow-up question: Would be be even HALF as interested in cryptocurrencies is they were simply priced at a more or less stable level? Let's say Steem was almost always right around 2 USD... if "appreciation" wasn't part of the picture, would cryptos still be "cool?"
I would certainly still appreciate them because of the blockchain capabilities. But I guess it would dramatically slow down adoption of crytos in the general population.
Yes I would! And I definitely do it as I have already my cards connected to the bitcoin exchange so why not go full crypto and get over with it.
Do you continuously transfer all your funds to crypto aschatria? If not you would have a choice between spending Fiat or crypto. Buying with crypto would most likely turn out to be the most expensive option over time.
Does that not make you feel a little cheated?
Let me know, I am very interested!
is bitcoin like a crypto gold?
In some way, it is better as a store of value rather than a currency for buying and selling - just like gold. There are upgrades under way though that might change that...
thanks for your opinion!!!
Without a doubt!
Let us know why, I am interested.
Thanks
beautiful,....takk har det bra
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