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.
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?
@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 am with you. Great list of things to with bitcoin and fiat
Nice read. Would take this advise as well. :) Thank you.
Good Read.
Bitcoin Is the Next Big Thing in Tech - Fortune.
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.
@hilarski - Sire, I like the way you think. Yes, not spending BTC Sire. Love your work Sire.
+W+ [UpVoted & ReSteemed]
already poured it into BTC ;) i am smart no !!
This is exactly what I have been doing for the last three years! My bank probably thinks I'm really really broke, I can't seem to keep any money there ;)
Great advice! One problem with Bitcoin-to-be investors is that they do not understand one can buy Bitcoin in smaller units. They save the Fiat in banks and never save enough for one "whole" coin. Thanks for the insight.
It is exactly that long-term investment stance that many will not take. Of course, diversifying that investment in a few strong altcoins would be wise as well. Ethereum for the platform, Steem for the social platform, et cetera.
HODLing :)
amigo #resteemia at your service
buy BTC worth than buying gold also. nice sharing @hilarski
ReSteemia
'UpVote ReSteem Comment'
Totally! People who are into crypto to make dollars are not getting it.
You shouldn't try to increase your dollars but rather increase your bitcoin/crypto!! Long term that's going to outperform selling for dollars by a factor 100
Increase the stack!
Definitely! Bitcoin will be up.. so just get as much Bitcoin by trading altcoins, and you'll be golden, is my belief!
I actually put almost all of my paycheck into BTC, use that for everything, then pull leftovers offline for savings. I had some difficulties recently and have less coin than this time 6 months ago, but without that coin this mess would have devastated my entire family.
It is true that the final amount is 21 million BTC, but do you know how many were "lost" in the beginning? A lot! I think the real amount is much lower. :)
Millions have been lost.
I have the perfect meme for this, dude haha I am in this situation right now where I need to pay bills but don't wanna power down my Steem
Haha didn't expect the last part with the casino.. I do hope bitcoin gets to the level of millionaires fighting over one but I am scared there are so many things that can go wrong still. And as someone that cannot afford buying it at any price am waiting for the next drop in price
Previously, waiting for a price drop has sometimes turned into an eternal wait and then despair. It hurts quite a bit when you could have put in at the correct time.
Well unfortunately last big drop happened 1 day after I booked a 2 weeks travel haha. This time I've nothing planned.
I love the casino!
Hehe not a bad place to make connections in :). I do work in a poker club so I'm quite close to gambling myself.
great idea
saving money is always best idea
looks like you have your finances in btc lined up well with regular life spending. are you using a ledger nano S? I'm trying to find the most secure, cost effective method.
Hope you're well man!
Ledger Blue, same company.
Very wise advice @hilarski. Increasing of our bitcoin positions day by day is the best we can do.
I have been lobbying very hard with my wife to get on board, and she's finally almost there. And I'm not going to do it without her. So, I have been locked out to date, but I'm not giving up by any means.
The other night, I told her that the Bitcoin revolution was coming, like it or not. That seemed to help. We're almost there.
It took my wife about six months to get on board.
My wife always says "well, buy some more!" I was just talking about Litecoin over the last 24 hrs.
I am trying to do that but my parents are always telling me btc is bullshit, btc is risky... I can't wait to move alone lol
true true^^
Bitcoin Is the Next Big Thing
I think it's a good idea to spend your Bitcoin and then replenish your stash with fiat. The more people use bitcoin the bigger it will become. I'm all about using it for as many things as I can!
Good perspective. I also agree that the more we use crypto, the larger the crypto-economy will become. I'll be using a small percentage of my crypto for purchases.
I definitely need to get back into Bitcoin. I've been focusing way too much on altcoins when everyone knows Bitcoin is eventually going to be worth a fortune.
well if that , it will completely destroy the ecomomy
I dont think its good
As an Anarchist destroying the gov run system is kind of the point.
I think this is great advice. Just invest consistently and don't worry about the price fluctuations. Bitcoin is still undervalued.
Yes gold worth safe will be for future @fkofficials
Bitcoin is a good business , i believe that this coin will change the financial world soon or later
That is what I try to do.
All my earnings from crypto have stayed in crypto rather than me converting it to this failing depreciated fiat system.
I'm glad that we were able to discover this phenomenon way before the whole of humanity does @hilarski haha
great post
follow & upvote & comment plz
"Number 3: We go to the casino!" Lol. I am not saving bitcoins myself, just use them to buy other altcoins, which I do save as future investments (Steem still being the highest investment).
Whenever I think about spending my cryptocurrencies I remember that buy who bought a $40 pizza for the equivalent now in Bitcoins of a few million dollars... hahahaha
It is kinda hard, right now, for example, I need to take some money to pay some bills but I refuse to sell me crypto, it is being harsh times....
Although I do not have much savings power, all the excess I invest in criptomonedas, like my SP, is my insurance of retirement. Is the only way to save money, banks today are unreliable.
I wish you a great day dear friend @hilarski
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Sounds like a plan to teach children.
My Father always told us too that if you earn a dollar its 90 cents on payday and 10 cents into the savings!!! Good advice Randy thank-you. 10 cents at a time to buy Flashcoin.. If Bitcoin is dollars then Flash makes cents!
Currently don't have to much money so saving in steemit. I hope it wil leave beta soon.
I agree 100%
Thanks for this great post