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The volatility of Bitcoin price becomes an actual issue when you spend it. It’s fine for the long term hodling, but spending it (in my case for travelling with my family) can be a roller coaster.

Smaller amounts isn’t such a issue but larger spends you can notice a major loss of purchasing power over a short window.

I have no doubt that this factor is affecting the medium of exchange adoption.

Chris 1y ago

Hey good friend 😘.

The root of this (perceived) issue is embedded in your own perspective and usage.

Just like Gold (for now), buying Bitcoin that you may need to sell or use in the next few months or even years is very risky in the fiat dominated MoE (Medium of Exchange) and UoA (Unit of Account) world we STILL live in and WILL live in for some time to come.

Bitcoin adoption isn’t on OUR (individual or collective) timeline. It’s on its own, divine, timing. Quite literally. 👁️🪬🧬🦋

Said another way….

If there was a “put” to cover your short term losses on Bitcoin purchases, it wouldn’t be self sovereign. It wouldn’t be Bitcoin. 😉

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Discussion

Chalmers 1y ago

I guess my perspective is greatly influenced by USD price because price is where I’m having to live. Food, accommodation and transport are all priced in dollars and so when dollar value drops in my world I’m feeling the losses.

Certainly don’t expect it to follow my whims. I think it just makes me realise if I’m finding it hard, and I have conviction. Others with less conviction will find it even harder to manage.

It’s a good test. I can still smile about it 😀

Chris 1y ago

I think this is quite common amongst a subset of bitcoiners.

In an effort to be “all in”, they actually OVER own it.

Meaning, they have little to no fiat reserves. Which are very important to get through these volatile cycles.

It’s a feature. Not a bug…😉

Chalmers 1y ago

Sounds about right. Conviction can take you too far into something. All good learning.