Should you Spend your Cryptocurrency?
In episode 11 of the Go Full Crypto podcast, we decided to talk about a question that we get asked a lot. Is it even practical to spend your cryptocurrency? Can you actually go throughout your day and spend cryptocurrency like you would regular cash? You are able to do this today in any part of the world that has the internet, or can take a VISA card. There are two ways to spend your cryptocurrency.
Find someone looking to trade goods/services for cryptocurrency
Use an 3rd party to exchange crypto for cash at the time of sale
It’s pretty obvious that the second option in that list is anti-crypto in nature, as it is not a true peer to peer (P2P) transaction. However, it is likely a necessary stepping stone in the journey to Going Full Crypto. Asking whether or not you can spend cryptocurrency might actually not be the right question to be asking, but rather should you spend your cryptocurrency?
Should You Spend Your Cryptocurrency?
This comes down to your financial goals, and the reason why you’ve invested in cryptocurrency in the first place. It also depends on what sort of economic climate you are facing in your part of the world. If you’re living in a country where your currency has undergone hyper inflation, then using cryptocurrency as cash is a no brainer. However, for the rest of us who for now have stable economies, the question of whether to spend your crypto or not is a relevant question to ask. For Mrugakshee and I at Go Full Crypto, we have opted to spend our cryptocurrency, but not our bitcoin.
Spend your Stablecoin
There is a type of cryptocurrency out there that closely resembles good ole cash. Stablecoins are cryptocurrencies that are inherently stable in value. They track the price of a real world currency that you’re familiar with like the US Dollar, the Canadian Dollar, or the Euro. By spending stablecoins, you are taking advantage of all the advantages of cryptocurrency without the downsides of the price volatility.
Save Bitcoin
As we heard mentioned in episode 10 with Ali Hamam, he thinks of bitcoin as a free savings technology. This is a fascinating concepts as Ali combined this notion with the observation that bitcoin is a “number goes up” machine. Bitcoin is designed very intelligently designed to self-regulate the number of bitcoins in circulation. The network gradually introduces less and less bitcoin into the system over time. This creates a potent situation with new supply going down and new demand coming in. The system is practically designed to increase the value of bitcoin over time. This constitutes one of the greatest savings technologies ever created.
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