You don't have to sell bitcoin, you can borrow against it, no taxes...and you are shorting fiat.
Some things are so captured by regulation, it is extremely difficult to buy with bitcoin.
HODLing bitcoin IS ALSO BEING USED AS A MEDIUM OF EXCHANGE. It is a trade from your present self to your future self. The "medium of exchange" vs "store of value" argument is a false one. They are the same thing.
Bitcoin cannot become a medium of exchange without being the majority of cash balances...the majority of wealth has to be bitcoin before it becomes money in the sense that it is used more transactionally.
No thanks, I don't do anything that promotes the debt system and fiat currency.
You honestly think mortgaging your BTC to spend fiat is in the greater interest of human freedom?
versus selling my bitcoin for fiat to pay:
electric bill
plane tickets
gas bill
all the shit that YOU CANNOT USE BITCOIN TO BUY
sorry I don't want to live like Uncle Ted in a shack in the woods with my wife and kids
so yes, I borrow against bitcoin when the only alternative is to sell it and pay taxes
that makes sense.
If you are into KYCed Bitcoin anyway.
I'd rather live in a shack in the woods than ask the state for permission to transact tbh.
tell me how you do it, I am here to learn...you operating 100% bitcoin to bitcoin?
of course not.
I just deal with the friction of exchanging directly p2p and don't pay taxes.
thats the thing...I have a family that requires school, a house, utilities...I can't just trade bitcoin with some other bitcoiner for diesel fuel and a generator and live in a shack in panama while vibe coding and blogging. I'm glad people do, but thats not how I want to live.
it's not a budgeting problem? everybody has fiat expenses.
I just hold cash rather than deal with the friction of moving back and forth.
Oh you hold cash. I eliminated the friction of holding cash by "mortgaging my bitcoin"
unless you earn in BTC, this makes zero sense.
the other advantage of borrowing is it increases the amount of BTC you own...if you sell off your stack to pay expenses...its gone
lets say you have a major expense...you need a new propeller and its $24,000.
option A: you sell .25 BTC, and now you have less
option B: borrow $100k, buy the prop, AND buy .75 BTC
got the thing you needed, have more btc, and can pay off the loan with a new one, ( using less btc when its due.)..rinse and repeat
KYCed Bitcoin is a shitcoin my friend.
good luck with your trade!
if you need to maintain a cash balamce of $20k you are losing $2k/yr to inflation, and missing 50%/yr in bitcoin...so the opportunity cost of having a cash balance is $12k/yr or more depending on your expenses
iow
you want to speculate on fiat-denominated purchasing power appreciation to the maximum extent possible and are fine with getting permission from the government to do that.
and Bitcoin is down vs USD over the last year so....
I prefer keeping sovereign control over my stack and having a lower fiat-denominated "net worth"
no need to kyc everything, just the corn you are borrowing against
there is no speculation: any fiat you have is depreciating
having a govt slave token balance decreases your net worth over time, in bitcoin
I don't sell bitcoin to get the worthless money: I borrow the worthless money and keep the bitcoin
That is the whole point, to keep the bitcoin
It's just a tool. I want more bitcoin rather than less, so I use the evil system. I'm not feeding the system any more than the person who keeps a slave token balance for fiat bills.
on the face of it, that's fine.
except you don't factor in that the kyced coins are cucked, permissioned and cease to function as freedom money.
normalizing using Bitcoin usage in this manner makes it just another government slave token. you're not "using the evil system," you're mortgaging your coins for more fiat purchasing power.
and I'm sorry but, you're absolutely feeding the system more than someone who simply keeps their head down and their stack private.
therefore its better (and also takes less administrative overhead) to simply have a fully sovereign private stack and use kyced fiat to render unto Caesar that which is Caesars.
i guess a difference of opinion...some kyc bitcoin i can borrow against works better for me than a bunch of slave tokens hyperinflating to oblivion
Fedi seems like great tool to circumvent this
you mean lend your Bitcoin to the mint for Bitcoin-backed tokens?
As a permission-less private way to transact with a local community. Isnβt this the goal of both bitcoin and monero?
I mean
"permission less?"
fedi tokens are a shitcoin.
but if you trust the community bank, it's probably fine right?
I think the whole point is yes you do trust the community bank. Shouldnβt you trust your local community? I know itβs common to be paranoid here about everything but in reality trust is fundamental. If you donβt have enough people you trust locally then you can always create a mint from anonymous parties and put a small amount of spending money in that is now completely private. Seems like a good use case no?
I'm just not sure what problem it solves exactly. It does FEEL like there's a use case here, far in the future when people have solved online reputation maybe.
But its not particularly useful if the user has to vet the mint themselves is it?
I agree that trust is the fundamental question here. Fedi *requires trust but doesn't do anything to solve the problem.
How can I confirm the mint is actually being run by separate entities and not one guy who spun up several different keys?
Thatβs a valid concern and if you didnβt know the guardians personally then it is a risk. I see it more as a solution for local circular economies that scales easier and with less friction than trying to fully orange pill your neighbors since we can all agree not everyone is gonna choose self custody but still should have access and ability to use freedom tech.
makes sense.
if we're talking bitcoin-backed Chaumian ecash adoption long term,
I think we need to first normalize private key self-custody and control.
even if it's an ecash shitcoin, people are spending by signing a transaction. personal key control is freedom.
Agreed
