When should you spend Bitcoin?
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Bitcoin holders buy Bitcoin and plan to hold it for years or even decades.
That mindset begs the question, when is it appropriate to start spending the Bitcoin you have accumulated?
Here is a framework of considerations and thought-provoking questions you can use to help decide when is a good time for you to spend your bitcoin.
Considerations
Here are some considerations to think about when deciding to spend Bitcoin:
Fulfilled Life - If your bitcoin's purchasing power leads to a higher quality of life and fulfillment, it may be worth spending it.
Concentration Issues - If the price of Bitcoin is distracting you from work or everyday life, it may be time to spend bitcoin in order to get your sanity back.
Withdrawal Rates - If fees are high, you may want to wait to start spending your bitcoin.
Thought-Provoking Questions
Here are (3) hypothetical questions to think about regarding your life and time preference as it relates to bitcoin:
When Bitcoin is at $1 million per coin, what life-long dreams can you now pursue?
This kind of purchasing power gives you freedom. It may be appropriate to spend your bitcoin when it allows you to pursue your life's dreams and aspirations.
If you were to die exactly 5 years from now, how would your day-to-day decisions change?
Your low-time preference thinking may have just shifted to a higher-time preference. That's ok.
If you were to die tomorrow, what are the biggest regrets that come to mind?
It may be worth spending your bitcoin if it helps you complete whatever it is you wanted to accomplish before you died.
If the end goal is for Bitcoin to become the dominant global payments system, bitcoiners may need to begin deciding when it is appropriate to start spending their stack to contribute to the circular economy.
Happy Wednesday,
-Pod
PS. This framework was taken from a workshop Morgen Rochard held last week. Follow her on Twitter for more Bitcoin financial advice!
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
