agree for those that have whole bitcoins, but if you are still accumulating a bit at a time and dont even have a whole coin.....the most sensible thing to do is to HODL.
Discussion
You’re thinking of Bitcoin solely as savings. That’s a good start, but that’s an arbitrary rule you’ve either made up or copied from some podcaster you listened to. Bitcoin is also spending money, and it’s very good spending money especially on the internet/nostr. You don’t spend from your savings, even when zapping here, for instance. You spend from your spending funds, money you keep for everyday purchases.
Taxes are a huge pain/worry for me. How do US folks deal with it?
Record all Bitcoin purchases: List the date, SATs amount, and purchase price in $ for each Bitcoin transaction.
Record all Bitcoin sales(gifts and exchanges count as sales too): List the date, amount of SATs, and sale price for each Bitcoin transaction. (If it were an exchange, you just calculate how much it would have been valued had you sold it for $.)
Now, you can let your tax preparer figure the rest out for you from that info, or you can do the math yourself for your own privacy. I recommend the FIFO method for simplicity’s sake.
I suppose the same applies to zaps?
Yeah, that would be a gift. So same rules apply.
However, the IRS only wants things reported in whole dollar figures, and since most zaps aren’t more than a few pennies, it’s hard to know how the enforcement will go on such things.
I’d keep up with any zap worth $.50 or more at the time of receipt.
I should clarify, not tax advice just my viewpoint. You should consult a tax professional to be sure.
Do not do all of that. Tax agencies rely on fear and self-reporting.
They have no enforcement capabilities beyond a few high profile individuals.
Stay private. Do not comply.
I enjoy spending my SATs, and I know, as a business, I’d much rather be paid in Bitcoin than fiat. So, if I see goods that I want that accept payment in Bitcoin, it entices me even to spend.
However, I do like to restack the SATs that I spent asap and I usually wouldn’t spend them if I cannot budget it within a week’s earnings.
I just spent the most I ever have in SATs for a purchase buying a Start9 yesterday. Felt good 👍
Yep, my “savings” go to my nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 wallet, which I keep topping up, while my “spending” bitcoin is in my nostr:npub1hcwcj72tlyk7thtyc8nq763vwrq5p2avnyeyrrlwxrzuvdl7j3usj4h9rq
Hmm your savings should be going onto cold storage
I move them into my nostr:npub18q57qr3t07qljnapzqldaqa7ru2qwfpfnjdrwvhk327n3sc82f0qqwrs6f wallet when they cross a threshold
nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 has a lightning address so first I move them to strike and eventually to nostr:npub18s4zkd0wjq5gkthz4paw2704ty4s354wcp2krvxy0sewz3g9z2cs73ydrt
If you’re not spending any bitcoin, you might not own enough. If you spend bitcoin every month because you ran out of fiat, you live in the future already.
Makes sense to me.
100%
No.
I will hoard bitcoin without permission.
Work, provide value to avoid forced selling.
Spend fiat to cover basic cost, until the producers of good stuff/services refuse fiat.
MOE era kicks off when prodcers ONLY accept bitcoin
You can do what you want. But the rest of what you just said isn’t true.
Exactly. Daily money can be snat for friends and interesting posts
I agree 100%. 🚀🔥❤️
I just think it’s a context. I spend Bitcoin but I am four years in. Some are new. Let them hodl
Take a zap for that. Oops spent some Bitcoin
Just because people do things, even if others like it, doesn’t mean they deserve money. Instead, money is a tool to help all participants get more of what they want.
It's certainly wise (and not very difficult) to understand that #Bitcoin can be both.
How is this different than buying a pizza 15 years ago?
You can spend and replace and in the process you will end up having bigger stack and you’ll massively improve your spending habits. Talking from experience here (also not a whole coiner yet).
"I'm not a millionaire therefore I am holding my dollars, not buying food or paying rent until I have a whole $millon"
Upgrade your mentality to Bitcoin as your UoA. Even if you’re fiat mining and saving what you can in sats, reduce your expenses and stack the difference. Spend and replace as needed. You’ll have more transactional freedom and you’ll dissuade yourself from overspending by default all while helping foster bitcoins circular economy and advancing MoE
I do spend in BTC.........I don't begrudge newbies hodling for a while especially if your just starting out. My 20 year old nephew just invested his 5K of savings in the S&P500. Personal context comes into play is what I am getting at. Bitcoin spending does need to occur for the bigger picture stuff for sure.
Almost nobody has a whole coin.
It's money. Spend it, earn it, save it, USE IT.