Good day everyone.
Not too long, i concluded a post that was suppose to be posted, but i changed my mind due to the confusion it might bring. So, i decided to ask it inform of a question instead. The questions are based on two instances.
Here it is...
First instance
Assuming you went to a coffee shop to get a cup of coffee. If the price tag on the coffee says $5 and you choose to pay with crypto...
second instance
Assuming you went to a dealer's shop to purchase a ferrari car worth over $300K...
Question 1
Would you prefer to pay with Bitcoin whose price is about $43K, or you would prefer to pay with a particular coin whose price is about 50cents ?.
Question 2
Give your explanation on why you made such decision.
Question 3
Did you use a reasonable approach in making such decision or it was based on choice ?.
Note: Question 1,2 and 3 are applicable to Instance 1 and 2. Therefore, a total of six(6) answers are required.
So many interesting questions to answer.
We have the Lightning network, I would think that I could use them with transaction costs around 1 cent, meaning high transaction costs on the Bitcoin main net are no longer an issue. I also assume that I have enough both BTC and fiat to pay.
My answer will be for both cases, because the size of the spend does not matter when it comes to financial instruments (BTC and fiat). The only thing I care about is: at that time BTC is in an uptrend or in a downtrend in the cycle I follow.
If BTC is in an uptrend and there are no signs of a reversal: BTC will become more valuable in the future, I will use fiat.
On the contrary, if BTC is about to enter a downtrend: I can use BTC to pay, at least that will help me reduce one step of selling BTC for fiat.
I think everything comes from technical analysis and it is rational, not driven by emotions created by the size of the payout and the convenience of payment.