overinvested in bitcoin
It’s funny. I never hear people say, “overinvested in (dollars|euros|whatever)”. ;-)
Can one be overinvested in money? Is that like allocating too much cash in your portfolio?
Firing at random, for I am now something like 20 pages behind WO. ATH yet?
If all your bills are denominated in bitcoin, then no problem to keep all your money in bitcoin -otherwise, if you have bills in dollars, you might be forced to reallocate some of those 100% bitcoins into dollars in order to make good on those bills.. and you may end up making such conversion at a time that is not of your choosing.
Point taken—as consistent with hard experience, personally. My remark was tongue-in-cheek, wink-wink ;-), just because I am unavoidably amused at the notion of being “overinvested” in money.
If I walk up to any random business and ask them if they will take bitcoins to settle or to render a good or service, there are pretty low odds that such random business is going to agree to transact with me in bitcoin.. because likely their first response would be, "what's that?" No one wants to appear dumb, of course, so they might fake it and they may have even heard of it, but they are not set up with an ability to receive bitcoin, an they might be reluctant to set up such ability, especially if they are approached from random peep (namely yours truly) off of the street.
The last time that I tried this, the response was dismissive: “It may go to zero.” The business proprietor knew what Bitcoin was. He thought that it was a stupid idea.
That was when Bitcoin was in the doldrums around $4k–5k for a long time. Maybe I should try it during a FOMO bull run, rather than a bear market.
I do think that business owners should immediately swap to Tethers* the exact amount that they project they will need to cover their fiat-denominated Accounts Payable in the short term (approximately the marginal cost to them of the underlying merchant transaction), for the reason that you state to me personally: Losses and potential insolvency are bad for business, too!
I have considered writing software to support this, but it got kicked down on the priorities list... It is something that BTCPay Server should consider, to solve their weak point that keeps many businesses stuck on outsourced payment acceptance. (Many ideas here, will omit for now.)
* Much better than using Shitpay!
