What if I told you...

EVERY transaction you make is a trade against your bitcoin stack, if you are thinking in a Bitcoin standard. Every bill you pay, every coffee you buy. All of it.

That is the way opportunity cost works. Opportunity cost is almost an afterthought in the Keynesian model, but it was briefly covered in my Econ 101 class a lot of years ago. In Austrian economics, it is much more front and center.

If you make a transaction where you got a product or service, and you gave someone some paper bank notes - well, those paper bank notes could have also bought sats at TODAY's exchange rate. Instead, you will pay a different exchange rate (could be lower or higher) the next time you buy sats. You may get more sats or less sats for the same amount of paper bank notes than you would have gotten today.

If you make a transaction where you promise to pay later (likely with interest) for a product or service (or house) - same exact thing. You could have promised to pay later for sats, and gotten sats at today's exchange rate. You could have traded sats (at today's exchange rate) for the product or service - but instead, you took a gamble on what that exchange rate would be in the future.

We do this all the time, in every transaction. We are gambling on what the exchange rate of our reserve currency will be in the future, and trying to make the best decisions to maintain or increase our reserves while also satisfying our needs. My reserve currency is Bitcoin. How that gamble plays out? Only the future will tell, but being aware of the risks, bets, gambles, and leveraged situations I am putting myself in definitely helps me make better informed decisions in every transaction. Like why I bought a motorcycle, in November (fall, here), on credit. A lot of future predictions and bets and gambles were in play here. I could have not bought it at all. I could have bought it with bitcoin, and never paid any interest. I might have been able to buy it with paper bank notes (and probably had to sell bitcoin, because I don't keep that many paper bank notes around). But all that gets simplified with opportunity cost. I bought a motorcycle, which means I wanted a motorcycle more than I wanted bitcoin. This is true. The way I bought it was, in my estimation at that time, the way I could get the motorcycle while also ending up with the most bitcoin in my reserve. That hasn't fully played out yet, but I'm not regretful of the transaction, and I still have plenty of bitcoin in my reserve.

EVERY transaction is a trade against your bitcoin stack, if your reserve is in bitcoin.

I don't make a lot of bitcoin posts here, but wanted to share this note, because it is a very important thing for people to wrap their minds around when considering changing reserve currencies.