Spending In Crypto Or Spending In Fiat
In as much as we talk about crypto adoption and how much we will love to see crypto integrated into a lot of things. For instance integrated into our day to day activities. Imagine buying an egg with bitcoin or buying a match box with Ethereum, would you want to spend your crypto on basic things? Imagine buying your bitcoin at $69k, now the price of bitcoin is $20k would you still want to spend your bitcoin for basic things?
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Fiat is a legal tender used for buying stuff and used to buy cryptocurrency, legend has it that soon fiat will be displaced by cryptocurrency. Cryptocurrency will replace fiat because it will be widely used and it’s technology was built in a way to make transactions easier, faster and more transparent. Making it more acceptable to people, but I believe that if this is going to be possible it will take a lot of time, may be in the next 30 to 50 years. Here people will be looking at physical fiat as an old method of payment. But still, I don’t people will be using volatile cryptocurrency for payment or spend volatile cryptocurrency.
Before spending your cryptocurrency, as a human who is attached to money and its value, I try to calculate the odds of the coin having a higher value. For instance, if I needed to spend 10 Hive which cost $3.4 to buy a loaf of bread, I wouldn’t because I feel that if the value of Hive get’s higher, this means that I had spent more money in the past to buy a loaf of bread, rather I would prefer to use fiat or a StableCoin to buy that. This is one of the reasons I think StableCoins or digital fiat will be much more widely used to purchase basic things than volatile cryptocurrencies.
If using volatile cryptocurrency is made mandatory for purchasing basic things then people will only buy that coin instantly to do the transaction but won’t hold it or store it just because they want to use it to pay for their basic needs. Just like we saw in El Salvador when some of them were given reasons why they can’t use bitcoin which is a legal tender in the country for transactions. Few hours ago the price of bitcoin slipped below $20k, from a price that was above $21k few day ago, this means that traders or merchant who accepted and held bitcoin will be at loss. Its safer to hold a StableCoin when it involves a day to day transaction as a trader than holding a volatile coin.
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I bought the worlds most expensive weed eater with Bitcoin on Overstock back in the 2018-19 bear market when I was learning things… Let’s just say now, I buy Bitcoin and spend Litecoin, lol.
The new strategy is turning all Hive and other defi rewards into LTC and if I need to spend it, I will use that instead. But I look at it like a savings account now, only spend if needed and replenish ASAP.
that is really cool, as for me, i only spend my crypto when i have no other options
Well now I am back to the 2 offline fiat jobs for a while, but for nearly 2 years I was living about 70% on crypto, trying to actually use it.
Without using a stablecoin mass adoption will be impossible, especially in the early stage. Volatile ones can be used considering the acceptance of the token but that would be a hassle for sure as you stated above. So fiat is all I can give my vote right now, in the future I might go with the stable cryptocurrencies if that gets mass acceptance.
i believe it will get mass acceptance because it makes more sense to use a stablecoin
A round of applause for the HODLers who've been spending their crypto to get the adoption ball rolling... 👏
I'm looking at you 10,000BTC pizza guy.
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exactly, imagine spending 100 Hive to buy coffee and in future that gets valued $1,000, you will feel like the BTC pizza guy
Eventually I would like to get my salary as crypto. Until then I transfer some into crypto and keep some in fiat so I can use both worlds.