Topic: Creating a Bitcoin Ecosystem - Earn & Spend (Read 389 times)

I think the number of businesses that accept Bitcoin will increase day by day. Bitcoin is already an advertising value tool. If I were a new business owner, I would like to use its popularity. Bitcoin will create its own ecosystem.

I started buying BTC 3 years ago to HODL only.

Right now, I feel the same way that you do, so I try to keep buying BTC and pay in BTC when I can like gambling... I could end up spending more BTC than I buy.

Still looking for a way to earn BTC.

Who is willing to buy Pizzas ?

Actually you should hold endlessly. Save what you can, spend only what you must.

If you earn in bitcoin, only exchange what you need for living expenses.

If you earn in fiat, spend what you must and the rest move it into bitcoin.

While i use bitcoin here, this is actually what you do when you use money that does not lose value overtime. Sometimes called deflationary, it is actually simply not losing value like fiats do. In the case of bitcoin, it does gain a bit of value as some coins are lost forever (lost wallets, etc). But this is the natural thing to do. Think of what people of the past did when they had gold coins and no banks, or what you do in a fantasy game. You will notice, albeit few people pay attention, than in those games your coins don't lose their purchasing value. Unless the market is intervened, such as in MMOs. And what you do is just keep them, maybe save to buy something later. This is exactly it... The Austrian school of economy. Save then buy, not get in debt to buy now and spend the rest of your life paying the debt... You are unfortunately used to the later, as promoted by the dominant Chicago school of economy worldwide. But they don't tolerate and in fact fear money that doesn't lose value overtime, which bitcoin is.

"hyper" is a silly word, don't use it. Use bitcoin as much as you can, then fall back to deprecated fiat when there is no choice. The transition isn't easy, and probably not quick. Its not just the coin, its the whole mindset. I still see people here outraged if a bank asks for fees to keeping their money; duh, that's exactly how banks should work, at least honest banks. But you shouldn't be using banks unless absolutely needed anyway, the bank business will shrink in this new reality, unless they embrace and adapt to the new situation, become exchange, wallet, payment processor, etc during the transition which might last quite a while.

You are going against people's habits here. Hey, do not get in debt to buy that car, save until you have the money to buy it. Why this is very American thing to do, but the Chinese tend to do it the other way. Ironic actually.

Holding is just another way to say save, of course you don't need a savings account, your money isn't losing value, and sometimes even gains a bit. this is Bitcoin in its final stage, if you came thinking you could buy bitcoin today and sell it tomorrow to be come rich, forget it, you came 10 years late for that. Still in its final stage bitcoin is a very useful asset to humanity. Its away to escape the fiat trap, not to mention the fractional reserve banking timing bomb, which can take the whole world economy (except Bitcoin) overnight. It only takes critical mass of people learning about fractional reserve banking, and their choice to withdraw their money, maybe to buy bitcoin. done slowly enough, the banks can adapt and shrink gradually, but if done in panic... a worldwide bankrun is possible. This is the ultimate feat which is why you always see them bailing out the banks but not the people.

The fact that a bankrun can occur is the telltale sign of a Ponzi like scheme. Go ahead and find by yourself what fractional reserve bank is. Why is this legal? Its related to the history of the modern bank. The bankster did fractional reserve practices when that was illegal two centuries ago, some did not lose the money gambling it or loaning it, got rich, and "lobbied" politicians into legalizing the practice.

Now that i know it, i wouldn't keep large amount of savings in banks. What if enough people learn about this? You never know, maybe the scheme will still go on another 100 years and nobody will notice, or maybe, just maybe the information will spread and panic withdraws will make the system collapse. You will not be able to take your money out if this happens, bankruns are nasty, its like an exchange that fails. To avoid a world trauma, its best to do it slowly. Don't worry, the way the system works, a single country cannot take down the world (there is a world bank), same as a single bank cannot take the whole country (there is a central bank). They made it for this reason, to protect their scheme. Those "meta" banks also work with fractional reserve principles, therefore can also bankrupt.

If you are skeptic do half/half. diversifying is never wrong. Its also half as good, but that's better than losing it all.

A few comments about restrictions in the U.S, its a pity but it is an example
of why we need Bitcoin and why we need it to be more than 'a store of value'
or a get rich quick scheme, we need to be able to use it, it needs to be something
that we control rather than what governments and banks control.

I'm not saying "spend it all" though...

It's also a tool that has political implications. It's a protest, or something like it. By HODLING, you are opting-out from the current financial system, you are IN the revolution unaware.

Creating a network of spending and purchase could actually help bitcoin in its way to becoming a full-pledged currency. See, the environment where money is regularly spent somehow lowers the inflation and the volatility rate of a certain curency. If this can be done with bitcoin, there could be a possibility that this will give way for bitcoin to become a much stabler coin that it's sipposed to be.

When it comes to spending people tend to avoid bitcoin as a payment method due to higher fees or low confirmation, just be honest people are not willing to pay the fee while you can get a free fee using the fiat. Second, the government in some countries banning bitcoin for using it as a payment method so there's no other way than HODL it as a commodity, that's why people can only use it as an investment tool.

In addition, there are many projects that are restricted in America, blocking them with lots of opportunities to earn in cryptocurrency. Though, their regulation about their taxes seems to be effective, in cryptocurrency space, we remain anonymous, I guess not stating all our transaction is quite reasonable because of the high fees we are paying just by transacting using bitcoin and its blockchain network.

In my country, we only need to pay tax when we are about to cash out or cash in, though, it is not explicitly stated, we know they take a portion of bitcoin by each conversion we made.

The problem comes from the regulations of each country, in my country there was an island that use Bitcoin as payment, the merchants there mostly accept Bitcoin, but now such ecosystem has been gone because Bitcoin as payment is prohibited.
Another problem is volatile price, small merchant will difficult to cover it.

At first what i know about bitcoin, it can really help me buy some digital things. But for merchant that sell real things overseas, i am not see big merchant accept bitcoin directly yet, or maybe already not accept bitcoin anymore. But maybe if i need something that only sell in outside of my country, i think bitcoin will really help me.

Survivability is not a big problem. An economic setup such as this would thrive, albeit with a few elements of the 'traditional' economic setup and traditional economic tools that we're used too aka fiat. Given that the majority of the world's economy is still dependent on fiat, with only a few percentage of that who are openly accepting crypto, fiat is still a must at some point. Well, we can use our coins on something we 'might' need on our browsing needs, say, a VPN just like what OP stated, or a VPS or whatever. There will always be that merchant who would be ready to accept bitcoin for his/her services and/or goods and if you have the coin, pay for it in crypto, and you are already contributing to the realization of a bitcoin ecosystem no matter how small that payment would be.

We may not see the light of day wherein everything can be bought and sold with bitcoin, but we can always create our tiny little space in the world's economy and create that ecosystem with our own coins, goods and services. Surviving does not necessarily mean outnumbering the throughput and output of the other, we just need to exist and do our own little thing while the rest of the world does theirs.

The biggest hurdle for me for spending Bitcoins as an American is the tax laws. American tax laws require us to report all transactions on our taxes.

This can be very cumbersome if you spend or trade a lot.

everyone has their own election and they can choose to sell, buy or hold and also invest in bitcoin. so if you see people talking about hold, there will definitely be other people who buy or sell it, don't be in a hurry to see the growth of a large ecosystem, I prefer a trip that grows little but is stable in its growth.

Well bitcoin in the first place was intended to replace fiat currency and not necessarily a new form of asset. We can't really control the situation right now since many bitcoin investors will be affected but hopefully in the near future when technology is readily available we will be able to use bitcoin for purchases.

There is allot of cryptocurrency and people could actually use different cryptocurrencies for different purposes. Bitcoin as an example is good in terms of investment, speculation and profit. But considering the use of other cryptocurrency such as stable coins will allow users to transact with steady market price the same as dollars, and the transaction fees and speed is faster. There are also cryptocurrency suited as a trading currency which provides discount, and cryptocurrency that serves as a coupon. What we just need is to discover the capabilities of these currencies to increase our productivity.

Earn and Spend, maybe since past i already did it. And yes, usually digital product like VPN that i look must be can paid with crypto no matter what crypto because i don't save money in Paypal and don't have credit card. But overall, i already satisfied with it although i still can't buy real product in my country yet with crypto because government regulation.

What we really need to build a Bitcoin ecosystem is to let people learn Bitcoin. We can start by teaching them what they have to learn. And if there's enough people who knows Bitcoin, it's easier to spend it outside online shops. We can earn it by working here with crypto, but spending it, there's still no enough merchants. We can't promote Bitcoin if we're just always going to buy online.
Indeed, the more people uses Bitcoin, others will adjust to it.

It terms of spending, we really have to be smart about it. We can't just spend it without looking at the current market situation.

speculation about bitcoin price is good as long as it remains as a side product not the main thing. people should always use bitcoin as a currency since that is what it was designed for and then as aside they can invest, hodl and enjoy the profits that bitcoin can give them. for example one correct view of holding is that i don't think of it as making more money but instead i consider it as a way to increase my purchasing power in the future while i still spend my bitcoins to benefit from the privacy it offers me.

NO, the idea is to HODL, until fiat currencies are valued in Bitcoin, until the time comes that "you don't have to sell for millions" one day, until hyper-BITCOINIZATION.

Yes. We really need to earn it first and as soon as we have more funds or the feel of needing to spend it then its the right time to do it. Mostly we always wait for the best price to spend it. Holding it for a long period is the safest strategy to have the right timing to spend it.