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Yesterday I was at a jewelry store buying my sister a graduation present. The store owner only wanted to accept cash, no Venmo or Zelle. I didn't have enough cash on me at the time, so I offered to pay him in Bitcoin.

His response was all too familiar, a little chuckle and then an explanation that he doesn't want any Bitcoin because he can't hold it in his hands.

Is there any way to get the concept of digital money through to boomers or is it not worth the effort?

Max 1y ago

The reason why he likes cash is because it is base money. When he holds the cash, it's not a liability of anyone else, nobody will default on a promise, he can do with it what he wants, and nobody can take it away from him, and

This is why he doesn't like venmo or zelle or bank transfers, what he gets is not base money, but a claim on base money, a digital credit that he can later redeem for cash at the atm, but the bank can always go bust and his cash is gone.

Bitcoin is the very first time that we have base money in cyberspace. It's not a bank credit or IOU or some token that can be redeemed for an underlying asset. Bitcoin is the thing itself, just like gold atoms or fiat cash.

So don't onboard him to a bitcoin money warehouse like wallet of satoshi, recommend him a self custodial wallet and explain him what the 12 word private key does.

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Discussion

Pepe NOSTRos 1y ago

I just onboarded my metals guy. Gonna try get him to set up btc metals site. mainly for my own convenience mind you but hey, may work out.

paulo 1y ago

Cash is still somebody else’s liability. Ask people from India who got specific denominations demonetized overnight a few years ago.

Max 1y ago

True, I guess this goes for any man made basemoney

orange ⚡️ 1y ago

Cash is also a claim that ultimately the FED or a central bank has to honor. And they can devalue that claim at will. Bitcoin is not fiat cash, it’s better.

Max 1y ago

That's not really accurate.

The commercial banks can have accounts at the central bank, and fiat value there is basically "a promise to print physical cash later", but it is "as good as cash", as the issuer of the claim is the same person that creates the physical base money. Thus these central bank reserves are included in calculations of total base money, it has a physical and a digital component.

Creating more base money units does not equal a default on a claim, the fiat cash cannot be redeamed for anything else, it is not a claim, so there cannot be a default.

Sure, printing more base money leads to all types of nasty consequences, it's just economically different from a default on a claim.

Bitcoin Belle 1y ago

The promise is only "as good as cash" if 1) the bank has the reserves to cover it, and 2) you've provided adequate proof that said money is not tied to any real or imagined crime.

Max 1y ago

I'm not talking about private banks, but central banks, which by definition cannot go bankrupt because they can just print base money.

Bitcoin Belle 1y ago

I'm working on slowing my roll. Thanks for taking the time to clarify.

Are there any private banks? Certainly none unfettered by government regulation. I guess I see the banking system like an octopus. Anyway, different conversation. 👋

Max 1y ago

With "private" I mean non-central bank.

772f9545... 1y ago

I think at some point electronic dollars became money and paper notes became claims redeemable in electronic dollars.