How tough was it to adjust to the loss of value of your 12/31 paycheck and 1/14?
I think your effort and intent is bold and important, but the reality is that the value of all products and services is still based on fiat prices. If your 12/31 paycheck earned you BTC10 (at $319 per BTC) and the USD price per BTC is $174 on 1/14 you've lost half of your purchasing power from that 12/31 paycheck. How do you handle that?
Your 10 coins from 12/31 can only buy $1740 in goods and service, compared to your hypothetical $3190 pay two weeks earlier.
I think your effort and intent is bold and important, but the reality is that the value of all products and services is still based on fiat prices. If your 12/31 paycheck earned you BTC10 (at $319 per BTC) and the USD price per BTC is $174 on 1/14 you've lost half of your purchasing power from that 12/31 paycheck. How do you handle that?
Your 10 coins from 12/31 can only buy $1740 in goods and service, compared to your hypothetical $3190 pay two weeks earlier.
With dollar cost averaging if I were to spend the exact same every paycheck then it would even out.
But, with volatility I am able to re-think my spending based on the price. If the price drops I might avoid going out to eat that week or hold off on a big purchase. If the price goes up I can treat myself to a nice night out or something I have been wanting for a while.
But I do not live paycheck to paycheck, I did this knowing I have enough to last me about a year or so. My only bills are my rent, my mortgage (which is being paid by an incoming rent check) and gas/food. My rent is about $1k euro which is nice since the euro has fallen a lot against the dollar. Gas costs me about $50 per month, food about 200 euro. My monthly income is over 5 times those monthly bills.
If I want to play it safe, I spend my bitcoins as close to payday as possible. I bought a video game yesterday and by spending bitcoins I got an 8% discount. The price was down about 5% from Friday, so I still come out ahead.
