Spendl vs Hodl
Many Bitcoiners want to hodl their digital coins. But this will not start a monetary revolution. That's why spendl should become the new hodl!
For many people, bitcoin is just an investment. You buy coins on an exchange, and if you don‘t keep them there, you send them to a hardware wallet or paper wallet. Then you wait. Because the price will rise, inevitably, right? Numbers go up.
In the Bitcoin community, HODL has become a confession of faith: bitcoins are not meant to be sold or spent, but only to be held and accumulated. Stack Satoshis and increase your bitcoin holdings, which will make you rich in the future. Bitcoin is a "saving technology", with the intended purpose of a p2p electronic cash system. It also appears to be the investment opportunity of the century. Should anybody in their right mind spend these precious digital coins?
— Sats App with SatsBack (@SatsApp) October 30, 2019
The answer is yes. Everybody should spend bitcoin, especially if you wish for your coins to increase in value and become the future of money! Instead of just holding, you should also exchange (for fiat) the coins you want to spend.
Baron Munchhausen's Tuft
The plan to hodl bitcoins until they are worth a lot, is a bit like the famous Baron Munchhausen, who pulled himself and his horse out of the swamp – on his own tuft.
Ask yourself why is bitcoin going to have such tremendous value? The answer is because bitcoin will be used as the better money that it is. Not just by the minority, but by everybody. Bitcoin delivers greater purchasing power, and the higher the purchasing power, the more value it has.
Bitcoin has the potential for absolute purchasing power. Valid and accepted as far as the Internet goes, without borders, without exchange rates. In every online shop of the world, in airport coffee shops in Asia and America, in European and Australian hotels and in retail shops in Milan and Miami. That is the vision we get from bitcoin, and we sincerely believe that it is this vision that will unleash the highest value.
Bitcoiners, which only bunker their coins, act rationally. The coins may be worth much more in the future, so it is better to keep them. At the same time, they prevent bitcoin from being worth even more. If nobody spends bitcoin, merchants will not see any point in accepting them, and if fewer merchants accept bitcoin, the purchasing power decreases.
We want to make the world the place Bitcoiners wish to it to be. A world, in which inflation, exchange rates and financial dependency is a thing of the past, something for the books of history, something which your grandparents tell you with horror. To make this vision a reality, Bitcoiners must start getting used to spending their valuable coins. Bring bitcoin to the world. Don"t be stingy with the better money – share it with the world.
The better hodler uses bitcoin to pay wherever he can – while he hodls bitcoin at the same time. That's why we call it spendl.
Spendl vs Hodl
Ideally, you spend and hodl bitcoin at the same time, which can be done in a lot of ways. You can invest money in bitcoin, as you may already do, and put these coins in a secure cold wallet – while you exchange a bit to fiat for your pocket money, which you use to spend. Then, if something is left at the end of the month, you send it to your cold wallet too.
If you assume that the bitcoin price will rise over the year, you will not just accumulate coins – you will also save money with your everyday purchases. If you use a service like Purse.io, you even get a discount for paying with bitcoin. And if you buy something in another country, you avoid exchange rate fees. So it is a triple win situation.
Spending and holding are two sides of the same coin. That's why it should be called spendl instead of hodl.
BitBucks: the perfect wallet to spendl BTC
Sure, it can be inconvenient to spend BTC. If you don't want to pay high transaction fees, you need to pay somehow "off-chain", instead of letting miners confirm your transaction.
The solution is commonly referred to as the Lighting Network. Despite remarkable progress, the convenience of using Lightning is usually far from perfect. That's why BitBucks is the ideal alternative for the "small pocket money". You have an intuitive app, and in very few steps, you can send BTC to your contacts and other addresses – free of fees if the recipient uses BitBucks too. This makes their app a part of the ecosystem – and a valuable tool to spendl your coins.
The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.
Images courtesy of Unsplash unless stated otherwise.
Last updated: 05/11/2019