That is my biggest dilemma.
On one hand I know adaption is the most important thing for bitcoin, and the best way to do it is to slowly replacing my day to day expenses towards paying by bitcoin. On the other hand I feel like we are still in early stages of it so I feel like spending is wasting my coins (like paying for the pizza example that gets thrown to your face all the time).
Imho if that pizza was not purchased, if the following transactions didn't happen (even the ones in deep web, heck even dark web) bitcoin would not be what it is today, yet everyday we keep hearing HODL HODL HODL.
So I came with a compromise. I'm not sure if this would make much sense, so I would love to hear the community's opinions on how it fares with your way of living.
Let us, for the sake of simplicity, assume I am not buying bitcoin every month with my spare cash, and that whatever I have right now is what I ever will have. It is easy to scale the calculation up by ratio for further buying. Now, the idea is to only spend bitcoin over certain levels of appreciation, with a lower rate. For the example below I will assume I have 1 bitcoin, or 100,000,000 satoshis for divisibility. Now I will have 2 parameters:
- Appreciation trigger rate, ATR
- Sale ratio, SR
The idea is pretty simple, after every time bitcoin price (say by USD) hits the next ATR, I will give myself allowance to spend SR amount of it for day-to-day transactions. If bitcoin keeps rising I will keep spending, if bitcoin is stagnant I will be waiting for the day for the rise (unless it appreciates over the new purchases for the ATR rate, which we ignore for the time being). Let us put this into numbers for instance.
For bitcoin price of $3,200, ATR of 25%, SR of %6
- When bitcoin hits $4,000 I give myself 60M satoshi allowance (which is now worth $240) that absolutely should be spend to increase adoption
- Next trigger happens at $5,000 my allowance becomes 56.4M satoshi ($282 worth)
- $6,250 -> 53M s ($331) ... $37,250 -> 3M s ($1200) ~ here we already lost half of our bitcoin, but our total net worth in USD becomes $18Km which is about 6x of our initial investment.
This way we never run out of bitcoin even if we were to reach the moon. We don't necessarily buy Lambo with bitcoin either though. It becomes a very good investment and a tool to get away from fiat to some extent. In these imgur link
), are the charts to illustrate above example for 3 sets of ATSR for 1 bitcoin with $3200 at face value.
Now, if we are buying, say $500 worth of bitcoin (15.6M satoshi) every month, we simply create a new thread with same calculations for that as well.
Of course biggest weakness of this approach is that it heavily depends on bitcoin price rising. I.e. if bitcoin price stagnates we are simply not spending it and thus are not helping with adoption. For this issue I was thinking about simply having part of my monthly purchase to be immediately made available to my allowance. Say I still buy bitcoin with $500->15.6M satoshi, but make 3.9M satoshi immediately available for me to spend for bitcoin based transaction. Basically losing usd over conversion rates to help bitcoin.
What do you guys think? Is this an OK strategy or am I missing something major in my calculations?
Also for anyone who plans to make jokes about this going to $0, I am throwing money etc etc, please find another thread to do so, I am genuinely asking for opinion of people who takes bitcoin seriously here.
Little did he know that will be, in fact, that this resulted in the most expensive pizzas ever bought. Today, that amount in Bitcoin is worth over $7 million. Better yet, if he would have kept the Bitcoin until the crypto market boom in 2017, he would have got somewhere around $70 million. The first Bitcoin transaction. The first block was ... In those days, Bitcoin was worth nothing (cents), and to order two family pizzas worth $ 30, Laszlo paid 10,000 Bitcoins! What was later considered as the first-ever purchase in Bitcoin, also became the world’s most expensive pizza. 10,000 Bitcoins worth today is worth more than 50 million USD. That has to have been the most expensive pizza: Bitcoin is the first blockchain-based cryptocurrency in the world. It is considered the most widespread and successful. Launched in 2009, the price of one bitcoin remained a few dollars for its ... Digital money that’s instant, private, and free from bank fees. Download our official wallet app and start using Bitcoin today. Read news, start mining, and buy BTC or BCH. Bitcoin has been recovering from the crash ever since, and surpassing $10,000 would imply that it’s made a full restoration. One can solely speculate why Bitcoin has elevated. It may be as a result of there’s a whole lot of curiosity in DeFi, or decentralized finance, proper now. DeFi refers to non-custodial monetary merchandise, most of ...
1. May 2010 In 2010, Laszlo Hanyecz agreed to pay 10,000 bitcoins for two pizzas. It was the most expensive pizza in history. 2. Jul 2010 Mt. Gox,was responsible for more than 70% of bitcoin ... My Chart Tool: TradingView ... The Most Expensive Weapon Ever Built - Duration: 8:20. Mr. Luxury Recommended for you. 8:20. Strange answers to the psychopath test Jon Ronson - Duration: 18:02 ... A friend of mine created the Bitcoin Pizza when Bitcoin was about $2,000. Now...its way more, but its still a bitcoin if you want one! Thanks to PIE for making this happen. Oh you also get ... From the most beautiful stones in the world to the most expensive rocks you’ve ever seen these gemstones are worth a shocking amount of money 18 Fire opal 17... Ever wonder how much it cost for an oil change on a mclaren 720s? Well this is my first time having to pay for one and man was it expensive. Here is a complete break down on the oil change.