Store of Value, Medium of Exchange, Unit of Account

Hey Freaks,

Below is a transcript of the debate between TheWildHustle and Billy Death on the topic of using Bitcoin as a store of value, medium of exchange, and unit of account.

Participants#

Billy Death TheWildHustle

Debate Transcript#

Billy: Hey Hustle, I recently saw a post on stacker news about spending and replacing your bitcoin. Isn't that retarded? Wouldnt it make more sense to just hodl.

• TheWildHustle: Well that depends Billy, what do you plan on using bitcoin for?

Billy: Well its an asset that will go up forever and I can accumulate a bunch of it at a huge discount right now, and in the future i'll probably be able to take a loan out on the bitcoin instead of selling. And on top of that there are capital gains taxes and exchange fees, and bitcoin is so niche right now that merchant adoption is few and far between anyway.

• TheWildHustle: Seems like your only thinking about bitcoin from the vantage point of store of value, and not unit of account and medium of exchange. Bitcoin is a lot more powerful than you think, you should consider unlocking all of the power of your bitcoin.

Billy: Oh, so your going to get all maxi on me.

• TheWildHustle: Why dont you want bitcoin to fulfill all of the aspects of money for you?

Billy: I can use bitcoin any way that I want, Its free open source software. I dont have the time or patience to be jumping from discountinued lightning wallet to discountinued lightning wallet, just so that I can virtue signal to the maxi's.

• TheWildHustle: If you want bitcoin to primarily be your store of value, what will you use for medium of exchange and unit of account?

Billy: I'll just use what's widely accepted in my area, its not like I have a choice in that matter

• TheWildHustle: Do you run a node

Billy: Its not profitable to run a bitcoin or lightning node. And I dont do anything for strictly altruistic reasons.

• TheWildHustle: Are you on nostr

Billy: Yeah, but nostr is dead. I dont have any followers and it feels like i'm just posting into the void. I dont see alot of content and the clients have a bunch of spam and lag.

• TheWildHustle: Are you going to report your zaps and e-cash to the IRS when you file your taxes?

Billy: Its such a small amount it doesnt matter.

• TheWildHustle: We havent seen the personal finance side of things take off in bitcoin. I'm seeing a not to distant future where you throw corn on your node and through a series of automations and budgeting, you achieve better financial privacy, insight and control. Seems like your not interested in financial sovereigny as much as you are with NGU. You shouldnt need to loan your bitcoin to a bank for tokens to buy your lunch.

Billy: This is the accumulation stage in my bitcoin journey. I'll learn how to spend, run a node and limit third party intermediaries after the tech get a bit better. I'm not technical at all.

• TheWildHustle: Do you think that fiat world will break gradually and then suddenly?

Billy: I doubt I'll be in a situation where I'm scrambling to make payments due to fiat implosion. And even if I am, at least I wont be alone.

• TheWildHustle: Do you enjoy your current banking setup?

Billy: Yep, works really well for me. I spend with my credit cards and get rewards, I have a Weekly DCA that goes into a hardware wallet, I have stocks on robin hood and an IRA with my job.

TheWildHustle's Warning#

• TheWildHustle: I'd be cautious trusting any of third party financial intermediaries. Things are going to get wild, and fiat is an illusion, its a decree from an entity that is currently in a death spiral. Switching your unit of account and using bitcoin as peer to peer digital cash will be a no brainer. Are you still learning about bitcoin?

Billy: What else is there to learn besides the value prop and how to send to cold storage? You want me to learn Austrian economics or something? I'm actually pretty busy.

• TheWildHustle: Which hardware wallet are you using?

Billy: A ledger

• TheWildHustle: Do you think the government will try shutting peoples bank accounts if they are considered unworthy?

Billy: That sounds like a conspiracy theory. Why would they do that, I'm not doing anything wrong.

• TheWildHustle: So your fine with giving your bitcoin to Larry for LarryCoin if it means you avoid tax liabilities and can buy a cheeseburger at McDonalds?

Billy: I'm just loaning him my bitcoin, and plus he's offering risk free yield. Its not like BlackRock is going to fall apart, their nothing like FTX or MT GOX. And I don't want to use bitcoin as peer to peer digital cash, I want to use it like its another type of financial asset that works with my current portfolio.

• TheWildHustle: This game is about more than stacking as many coins as you can. If bitcoin does what we think it will, understanding how to use it will be a huge advantage. The game is more about leaving the traditional fiat banking system.

Billy: I'm too comfortable to move.

originally posted at https://stacker.news/items/697535