Why you should be using your Bitcoin for transactions when given the choice

TLDR: Use lightning as a checking account when given the option and immediately exchange fiat to replenish funds. This removes value from the circulating fiat economy and into the Bitcoin economy. If your spending is small % of savings tax implications should be minimal or positive

People seem to think that you should always purchase things with fiat rather than Bitcoin because it is the weaker form of money. This is nonsense. As long as there is liquidity to exchange fiat for BTC the opportunity cost is exactly identical. Any money you spend is money that could’ve gone towards stacking sats, whether you exchange it or not.

I expect within the next year we will start to see more wide scale adoption of lightning by retailers, online services, and individuals. The network is gaining liquidity, it works, and the financial incentives are there. When this happens we should all make it a point to reward that effort in the form of lower fees for merchants and more liquidity for the network to encourage transferring as much value as possible out of fiat and into Bitcoin where it cannot be fucked with.

Learn how lightning works. Get a lightning wallet. Make your friends pay you those $20 they owe you in sats instead of Zelle or Venmo. Be ready. There are enough bottlenecks to adoption without you being one of them.

Now I know you’re thinking “But taxes..!!!”. More nonsense. 1. You only pay taxes on profits, so as long as you’re buying extra Bitcoin specifically for spending this just means you made more money. 2. Most places including US let you pick what method to use for calculating your BTC price (LIFO etc.). DCA + volatility means there’s good chances to declare losses or at least minimize gains taxes.

Fuck FIAT, pay with lightning, stack sats