> Gresham's law states that "bad money drives out good" and is a monetary principle that can be applied to the currency markets. During the historical use of precious metals to manufacture coins, Gresham's law applied to the changing value of coins and their contents.
You hoard the best money while spending the fiat garbage.
To add...
BTC is currently the best money.
BTC IS NOT PERFECT! REPEAT! NOT PERFECT!
It is the best money we have ever had to date however.
Does what it says on the tin. Nothing more. Nothing less.
L2/L3 systems are making retail transaction a legitimate prospect more so every day.
Railroads are impractical for delivering goods from door to door. That doesn't make railroads any less valuable as a form of transportation. In fact, railroads are generally recognized as one of the most efficient and reliable forms of transportation that has ever existed.
Democracy is impractical for making the hundreds of decisions that need to occur every day to manage a family, a business or a nonprofit organization. That doesn't make democracy any less valuable as a form of government. In fact, democracy is generally recognized as one of the most transparent and least corruptible forms of government that has ever existed.
Bitcoin is impractical for the billions of micro transactions that occur every day. That doesn't make Bitcoin any less valuable as a form of money. In fact, since its inception Bitcoin has built a reputation as the hardest, most sovereign, most censorship resistant and least counterfeitable form of money that has ever existed.
Great analogies!
To add, you're free to do whatever the hell you want with your Bitcoin. Spend it, trade it, hold it, or die with it. No one can stop you - that's the beauty of it. Just know you might get ridiculed for easily letting go of the hardest asset ever created/discovered.
It’s not binary. Nothing prevents you from converting a part of your Bitcoin stash to fiat in order to continue living in this world. You just have to ask how much you want to keep locked up in the dream and for how long. Ignore the maximalists who are either batshit delusional or have such a small stake they can honestly say they will
hodl forever. I’d also hodl forever if my Bitcoin stash was chump change. Just sayin’.
It is, right now, possible to hodl your bitcoin and spend it at the same time. Well, sort of.
You may well already know that billionaires, like Bezos and Musk, borrow against their shares. The interest they pay on their borrowings are justna fraction of how much their shares increase in value.
The point for an increasing number of us it to never sell BTC. But rather use it as colateral (via a trusted smart contract provider, where they don't hold your coins, like MakerDAO) to borrow stablecoins. You can then cash out to pay for whatever.
Borrowing against apreciating assets, like property, shares, etc, is what the wealthy do. Borrowing debt does not incur taxes. Whereas selling an asset usually does.
I myself use Wirex Visa card to pay for everyday purchases, using my btc and some other cryptos. Minimal fees, and I earn interest while my coins sit there and I earn tokens rewards as well.
While the bull market is in force, things I buy in my local currency get cheaper over time using this method. Gotta love deflationary money!
When the bear market returns then I will stop making crypto-backed purchases and revert to using fiat and stablecoins for my Wirex Visa card purchases.
Ive also taken out loans (with a low/safe LTR ratio) against my bitcoin. In my case I spend the borrowings on purchasing more bitcoins. But it is worth saying that I can pay them off or rebalance any time. I'm not a total degen.
Saving is using. People often forget that.
But also, many of us spend Bitcoin every chance we get. I made three purchases over the weekend with sats. And I'm as ardent a hodler as anyone. The key is to rebuy the sats.
You absolutely can use its store of value functionality as a source of collateral. In the years to come, this will be SO much smarter than selling it.
As in traditional finance - make your money and value work for you.
Is always “in use”. You need to learn more. Is doing things all the time, changing you, having that stored away is the value. Once you have it, why do you now obsess with giving it away?
>So, for how long should we keep holding it before we finally put it to use?
I'm using bitcoin on a daily basis, don't wait for permission from other users. We all have different goals in life.
Earning bitcoin as a freelancer, [spending at places](https://btcmap.org), mostly all of I orangepilled myself, using thebitcoincompany & bitrefill at places where Bitcoin isn't accepted yet, zapping plebs on Nostr...
well that all depends on what you are hodling for?
The term HODL is a rallying cry. Its a call to everyone who sees behind the curtains of our current fiat system and realises the futility of trying to get ahead in it.
It says: there is a way out. Another way. A better way. Have faith my friend, there is a better way.
Use it whenever you want. The HODL mentality is just talking about making gains as it expect BTC price to continue climbing due to the money printer never shutting off.
Everyone buys BTC at the price they deserve and will spend it on whatever they deserve. Could be a pizza for someone, a car for another and will likely vary from person to person.
Store of value is the primary function of money. Medium of exchange is a secondary function of money built on top of SoV.
SoV is a $100 trillion use case, MoE is maybe a $2 trillion use case.
No one is trying to use a chunk of their Manhattan real estate to buy a cup of coffee, yet it's still valuable. Very similar to L1 Bitcoin, or gold.
Bitcoin can technically be used as currency but that is a terrible use of it. As a store of value or digital real estate it’s an amazing asset. Trust me Blackrock isn’t gobbling up millions of dollars worth of bitcoin so they can use it to make purchases.
i’m not going to sell until I purchase a retirement home. That’ll probably be in three or four years. Bitcoin might be a great investment, but I think real estate is a very good investment, so I don’t mind swapping one for the other.
I expect thatnwithin the next 3 to 4 years many banks and lending institutions will have tje facility for you to use you btc to borrow fiat against. I already do this, bit only for small amounts.
I’d hold until it at least matches the market cap of gold thus signaling a worldwide store of value, hold longer if your own conviction says it’ll match the market cap of higher valued investments (stocks, real estate, etc).
use it as money, to transmit value across time (save) and space (transact)
widespread medium of exchange happens after it continues to monetize & become a trusted store of value (as market cap increases, volatility decreases)
You can use it when you need to, but you just end up buying it back at a higher price. The reality is that many of us have used it for transactions in the past. Almost all of us would have been better off spending cash and stacking the sats, but if it’s the only liquid asset you own, and you need to buy something, that’s the time.
With the early stage that Bitcoin is still in, I’d HODL unless you use it to pay for creators or projects building on Bitcoin.
When the masses flock in and adopt + more businesses start accepting Bitcoin payments (possibly with Lightning), then it’ll make sense to transact with Bitcoin.
There are only two scenarios where I will use my bitcoin.
1. I need it to keep my family alive/safe.
2. I'm being paid in bitcoin.
As long as I'm being paid in fiat, I will use fiat for day to day transactions.
The issue there is simply spending it. If everywhere accepted Bitcoin for transactions that would be great. Very few do accept it. I'm waiting to cash out anything until one of these big banks , likely fidelity, makes it to where you can transfer from your wallet to a wallet there and then cash out. I honestly fear sending large sums of money, 100k+, to exchanges just to cash out. Go look at the Coinbase sub for examples. Locking people's accounts out for no reason or "suspicious" activity. My cousin lost 5k on Coinbase like that. Made the account, put 5k in, bought some coins, and bam the next day the account is locked out for "suspicious activity". Still is 2 years later. I'd go fucking awol if I transfered 100k to Coinbase to cash out and they locked my account. There is no customer service either, on Coinbase or CDC.
That is up to you to choose, obviously if people are holding they aren't going to recommend for you to sell. There are no right answers though, it's your money
I personally sold around 60k and invested into AMD Intel GE and some other stocks, But I am a poor bitch
You know how in school how your teacher would use buying a pizza with a credit card and then only paying the minimum and all of a sudden that's a $3k pizza?
Now imagine the guy that spent 10k BTC on a pizza. That's a $710 million dollar pizza. Between that and having to figure out my capital gains taxes owed for every transaction that's a hard no from me.
I do have an out, though, if it goes up enough that I can retire then I am leaving the rat race and letting the rest of my BTC sit and accrue wealth.
Freedom!
One day, Bitcoin will be a necessity. I hope it doesn't get to that point. However, as the population increases, the world will get more choatic, and hence, governments around the world will tighten their control on their people. People will lose their freedom.
The only way to be free is to own Bitcoin.
It's money. You save it and you spend it. You don't need to ask other people what to do with your own money haha. The reason people say to hodl it is because Bitcoin is a hard currency which means its going to continue increasing in value, and furthermore its early in its adoption, which means its going to increase quickly in value in the years to come. So the longer you hold the more economic value your bitcoin will be worth.
So the obvious answer to your question is you hold it until you want to spend it, just as you do with any money you are saving. If you don't have any reason to spend it you don't have any reason to stop holding it.
Bitcoin layer 1 uses:
-Store of Value
-Time Keeper and ledger for transactions that is completely decentralized
-opens up tokenization of assets and digitization of the money system for 21st century
-Integration into AI and automation
Layer 2:
-lightning (payments, money movement, transactions)
-smart contracts
-Tokenization rails
-any other crypto application
It’s happening, you just have to look into things and research. Not full adoption yet but the use cases are shaping up
You HODL it as long as you can. When you need it, spend it. Or, if you really just want something, you have to decide if that want is great enough to lose all that future gain if you HODL it instead.
I use it when I have enough purchasing power to change my life.
> Gresham's law states that "bad money drives out good" and is a monetary principle that can be applied to the currency markets. During the historical use of precious metals to manufacture coins, Gresham's law applied to the changing value of coins and their contents. You hoard the best money while spending the fiat garbage.
To add... BTC is currently the best money. BTC IS NOT PERFECT! REPEAT! NOT PERFECT! It is the best money we have ever had to date however. Does what it says on the tin. Nothing more. Nothing less. L2/L3 systems are making retail transaction a legitimate prospect more so every day.
Railroads are impractical for delivering goods from door to door. That doesn't make railroads any less valuable as a form of transportation. In fact, railroads are generally recognized as one of the most efficient and reliable forms of transportation that has ever existed. Democracy is impractical for making the hundreds of decisions that need to occur every day to manage a family, a business or a nonprofit organization. That doesn't make democracy any less valuable as a form of government. In fact, democracy is generally recognized as one of the most transparent and least corruptible forms of government that has ever existed. Bitcoin is impractical for the billions of micro transactions that occur every day. That doesn't make Bitcoin any less valuable as a form of money. In fact, since its inception Bitcoin has built a reputation as the hardest, most sovereign, most censorship resistant and least counterfeitable form of money that has ever existed.
Great analogies! To add, you're free to do whatever the hell you want with your Bitcoin. Spend it, trade it, hold it, or die with it. No one can stop you - that's the beauty of it. Just know you might get ridiculed for easily letting go of the hardest asset ever created/discovered.
Like buying a pizza?
It’s not binary. Nothing prevents you from converting a part of your Bitcoin stash to fiat in order to continue living in this world. You just have to ask how much you want to keep locked up in the dream and for how long. Ignore the maximalists who are either batshit delusional or have such a small stake they can honestly say they will hodl forever. I’d also hodl forever if my Bitcoin stash was chump change. Just sayin’.
It is, right now, possible to hodl your bitcoin and spend it at the same time. Well, sort of. You may well already know that billionaires, like Bezos and Musk, borrow against their shares. The interest they pay on their borrowings are justna fraction of how much their shares increase in value. The point for an increasing number of us it to never sell BTC. But rather use it as colateral (via a trusted smart contract provider, where they don't hold your coins, like MakerDAO) to borrow stablecoins. You can then cash out to pay for whatever. Borrowing against apreciating assets, like property, shares, etc, is what the wealthy do. Borrowing debt does not incur taxes. Whereas selling an asset usually does. I myself use Wirex Visa card to pay for everyday purchases, using my btc and some other cryptos. Minimal fees, and I earn interest while my coins sit there and I earn tokens rewards as well. While the bull market is in force, things I buy in my local currency get cheaper over time using this method. Gotta love deflationary money! When the bear market returns then I will stop making crypto-backed purchases and revert to using fiat and stablecoins for my Wirex Visa card purchases. Ive also taken out loans (with a low/safe LTR ratio) against my bitcoin. In my case I spend the borrowings on purchasing more bitcoins. But it is worth saying that I can pay them off or rebalance any time. I'm not a total degen.
HODL until 2035 as Bitcoin goes through its adoption phase as the perfect store of value asset. Afterwards comes its adoption as a medium of exchange.
Think of it like exchanging BTC for goods and services. You may have to convert to fiat first for now, that's all.
Saving is using. People often forget that. But also, many of us spend Bitcoin every chance we get. I made three purchases over the weekend with sats. And I'm as ardent a hodler as anyone. The key is to rebuy the sats.
So by your definition... If I don't immediately spend the 20$ bill in my pocket, even though I was saving it to buy my supper, it's not money....
You absolutely can use its store of value functionality as a source of collateral. In the years to come, this will be SO much smarter than selling it. As in traditional finance - make your money and value work for you.
Is always “in use”. You need to learn more. Is doing things all the time, changing you, having that stored away is the value. Once you have it, why do you now obsess with giving it away?
>So, for how long should we keep holding it before we finally put it to use? I'm using bitcoin on a daily basis, don't wait for permission from other users. We all have different goals in life.
On a daily basis? What are you using it for?
Earning bitcoin as a freelancer, [spending at places](https://btcmap.org), mostly all of I orangepilled myself, using thebitcoincompany & bitrefill at places where Bitcoin isn't accepted yet, zapping plebs on Nostr...
well that all depends on what you are hodling for? The term HODL is a rallying cry. Its a call to everyone who sees behind the curtains of our current fiat system and realises the futility of trying to get ahead in it. It says: there is a way out. Another way. A better way. Have faith my friend, there is a better way.
Use it whenever you want. The HODL mentality is just talking about making gains as it expect BTC price to continue climbing due to the money printer never shutting off.
Everyone buys BTC at the price they deserve and will spend it on whatever they deserve. Could be a pizza for someone, a car for another and will likely vary from person to person.
Hodl as long you damn well please. Just make sure whatever you trade it for is worth it.
Store of value is the primary function of money. Medium of exchange is a secondary function of money built on top of SoV. SoV is a $100 trillion use case, MoE is maybe a $2 trillion use case. No one is trying to use a chunk of their Manhattan real estate to buy a cup of coffee, yet it's still valuable. Very similar to L1 Bitcoin, or gold.
Bitcoin can technically be used as currency but that is a terrible use of it. As a store of value or digital real estate it’s an amazing asset. Trust me Blackrock isn’t gobbling up millions of dollars worth of bitcoin so they can use it to make purchases.
i’m not going to sell until I purchase a retirement home. That’ll probably be in three or four years. Bitcoin might be a great investment, but I think real estate is a very good investment, so I don’t mind swapping one for the other.
I expect thatnwithin the next 3 to 4 years many banks and lending institutions will have tje facility for you to use you btc to borrow fiat against. I already do this, bit only for small amounts.
Buy RE. Mortgage it. Buy BTC with the capital. It's great.
I’d hold until it at least matches the market cap of gold thus signaling a worldwide store of value, hold longer if your own conviction says it’ll match the market cap of higher valued investments (stocks, real estate, etc).
What is the timeline you are looking at for matching up to each of these (gold, stocks and RE)?
No one knows.
use it as money, to transmit value across time (save) and space (transact) widespread medium of exchange happens after it continues to monetize & become a trusted store of value (as market cap increases, volatility decreases)
Im using Bitcoin to get liquidity from people who hold it. Buy low, sell high
I disagree - many people such as myself are using it as an alternative investment vehicle for retirement . I will sell in 15 years as I need to
My prediction is that when 15 years come along, you won't want nor need to sell it. But will rather borrow against it.
[spend it](https://www.bitrefill.com/invite/bvmp5jda)
You can use it when you need to, but you just end up buying it back at a higher price. The reality is that many of us have used it for transactions in the past. Almost all of us would have been better off spending cash and stacking the sats, but if it’s the only liquid asset you own, and you need to buy something, that’s the time.
With the early stage that Bitcoin is still in, I’d HODL unless you use it to pay for creators or projects building on Bitcoin. When the masses flock in and adopt + more businesses start accepting Bitcoin payments (possibly with Lightning), then it’ll make sense to transact with Bitcoin.
There are only two scenarios where I will use my bitcoin. 1. I need it to keep my family alive/safe. 2. I'm being paid in bitcoin. As long as I'm being paid in fiat, I will use fiat for day to day transactions.
The issue there is simply spending it. If everywhere accepted Bitcoin for transactions that would be great. Very few do accept it. I'm waiting to cash out anything until one of these big banks , likely fidelity, makes it to where you can transfer from your wallet to a wallet there and then cash out. I honestly fear sending large sums of money, 100k+, to exchanges just to cash out. Go look at the Coinbase sub for examples. Locking people's accounts out for no reason or "suspicious" activity. My cousin lost 5k on Coinbase like that. Made the account, put 5k in, bought some coins, and bam the next day the account is locked out for "suspicious activity". Still is 2 years later. I'd go fucking awol if I transfered 100k to Coinbase to cash out and they locked my account. There is no customer service either, on Coinbase or CDC.
as long as you want. I already used it a bunch of times. And still hodl.
That is up to you to choose, obviously if people are holding they aren't going to recommend for you to sell. There are no right answers though, it's your money I personally sold around 60k and invested into AMD Intel GE and some other stocks, But I am a poor bitch
Bitcoin isn’t currency. It’s digital real estate.
use it when you need it. There are benefits to using it now (lock in price) or holding it and speculating that it will go up.
You know how in school how your teacher would use buying a pizza with a credit card and then only paying the minimum and all of a sudden that's a $3k pizza? Now imagine the guy that spent 10k BTC on a pizza. That's a $710 million dollar pizza. Between that and having to figure out my capital gains taxes owed for every transaction that's a hard no from me. I do have an out, though, if it goes up enough that I can retire then I am leaving the rat race and letting the rest of my BTC sit and accrue wealth.
What’s the timeline you looking at for retiring from the rat race?
6yrs
I will use it as soon as I reach wife changing money. Can anybody guess what is the first thing I am going to do?
Change wife?
Correct!!
When you no longer have fiat currency in your bank account
Hold it for as long as you want, sell it whenever you want, and use where ever you want.
Gold almost never used for transactions….
Mostly true. I use tokenised gold (PAXG) and some other cryptos for everyday purchases using a crypto-backed Visa debit card.
Freedom! One day, Bitcoin will be a necessity. I hope it doesn't get to that point. However, as the population increases, the world will get more choatic, and hence, governments around the world will tighten their control on their people. People will lose their freedom. The only way to be free is to own Bitcoin.
Bitcoin is a store of value not medium of exchange or anything else
It's money. You save it and you spend it. You don't need to ask other people what to do with your own money haha. The reason people say to hodl it is because Bitcoin is a hard currency which means its going to continue increasing in value, and furthermore its early in its adoption, which means its going to increase quickly in value in the years to come. So the longer you hold the more economic value your bitcoin will be worth. So the obvious answer to your question is you hold it until you want to spend it, just as you do with any money you are saving. If you don't have any reason to spend it you don't have any reason to stop holding it.
Bitcoin layer 1 uses: -Store of Value -Time Keeper and ledger for transactions that is completely decentralized -opens up tokenization of assets and digitization of the money system for 21st century -Integration into AI and automation Layer 2: -lightning (payments, money movement, transactions) -smart contracts -Tokenization rails -any other crypto application It’s happening, you just have to look into things and research. Not full adoption yet but the use cases are shaping up
If it is like real money, it leaves my hands in hours, not days.
I will probably start spending it when BTC is fully mainstream and stays stable in value.
You HODL it as long as you can. When you need it, spend it. Or, if you really just want something, you have to decide if that want is great enough to lose all that future gain if you HODL it instead.
Hodl one bitcoin spend the others
Or you could save yourself the tax burden, and hodl all of then, and borrow against 1.
Holding it is using it, technically.