Bitcoin's Bull Run: Maximizing Purchasing Power in a Rising Market - #302
Bitcoin's Bull Run: Maximizing Purchasing Power in a Rising Market - #302
TL;DR - A guide to wallets, spending methods, and seizing opportunities in the rising market.
Reader,
Welcome to the new bull market.
Since last year, bitcoin's fiat price rose from $21,800 to $51,000. Those who adopted a bitcoin standard have seen a 133.94% increase in their purchasing power.
Understanding the Bull Market
Bull markets are periods of rising asset prices driven by investor optimism in the markets. Speculators and gamblers take positions on future performance. Those worried about inflation seek quality assets to park value in.
Bitcoin's price rises
With a limited supply and increase in demand, the price rises.
Long term hodlers continue to hold. More new comers look to buy. Ordinals and tokens need more bitcoin and blockspace. ETFs demand is 12.5 times higher than what the network produces... Combine all these elements together and the price action becomes explosive.
Harness your gains
As the price rises, some would say "take profits." Rather, learn to tap into your increase in purchasing power. "Taking profits" would mean you sell some of your bitcoin for fiat. "Spending" your bitcoin means using it without going back to fiat.
The ideal would be to exit fiat and stay in bitcoin. Using quality tools help achieve this.
Chose the right tool
"Wallets" are apps which sign transactions. Think your signature on a check. A good wallet will do the following...
Give you control of your keys (non-custodial)
Respect your privacy and data
Allow you to control your coins and fees
A good wallet provides the above giving the user a smoother experience.
On Nodes...
Nodes verify transactions on the blockchain. Running your own node and connecting to it helps increase sovereignty and privacy.
Not everyone will run a node. It's recommended though. That's OK.
Hot and cold wallets...
Cold wallets, aka "cold storage", are private keys generated offline. The wallet rarely, if ever, touches in the internet. Accessing funds can be cumbersome.
Hot wallets are online and better suited for daily use.
Wallets that I use
Samourai Wallet
Samourai is a privacy focused bitcoin mobile wallet. The user interface is simple and straightforward. Offers coin and fee control, and privacy tools to help break chain analysis. Works best when running through your own node.
Edge Wallet
Edge is another privacy mobile wallet with a focus on the user experience. The new interface is sleek and human readable. What I like about Edge is how it keeps accounting needs in mind. Users can export CSV or Quickbook files and then had off to their tax preparer with ease.
Edge is also a multi-coin wallet with a built in exchange.
6 ways to spend bitcoin
1 - Online retailers
Online merchants who accept bitcoin make for a smooth transactional experience. Use directories like BitPay, 99Bitcoins, Spendabit or Cryptwerks to find retail merchants.
Personal favorites:
Newegg for buying computing equipment
Travala for booking flights, stays and rentals
The Florida Beef Initiative for buying beef products
2 - Physical stores
The stores in the US accepting bitcoin are still few and far between. But they do exist. Use maps such as BTC Map, Bitcoin Map, and Coinmap to find physical locations.
3 - Gift and prepaid cards
These tools are a "sly round about way" to transact at stores not accepting bitcoin (yet).
Places I use:
Bitrefill for gift cards
The Bitcoin Company for gift and prepaid cards
Coincards for gift cards
Trocador for prepaid cards
4 - Crypto debit cards
Cryptocurrency exchanges such as Coinbase, Crypto(dot)com, and ByBit offer crypto cards. They're familiar and simple to use. Load the card with the currency of choice, then pay at the point of sale.
5 - Peer-to-Peer Markets
A simpler way to transacting person-to-person. Find someone who wants bitcoin and make an arrangement. The arrangement: they buy the good or service for you in exchange for bitcoin. Both parties benefit in the trade. It's something I still do today.
Another option are P2P platforms such as ShopinBit and Monezon. Here, you place an order on the site. The site connects someone who will buy the good(s) in question for bitcoin. Deposited bitcoin waits in escrow until the trade is complete.
Check out:
6 - Bill Payment Platforms
Paying bills in the US was a challenge for some time. Now there are two bill payment platforms: BitPay and Spritz Finance. Find your bill(s), then pay with bitcoin from your wallet.
BitPay has paused new crypto debit cards. Spritz offers a reloadable card for easy spending.
Note: both are KYC AML compliant.
Check out:
BitPay bill payment has been around for along time
Spritz Finance, a new comer with a lot of promise
More tips
Spending bitcoin has gotten easier over time. Though with more users comes higher and unpredictable fees. Consider these tips to give you more options:
1 - Try other cryptocurrencies
As bitcoin's price rises, you might not want to spend it. So consider spending something else and keep bitcoin as your base. Using Edge Wallet, swap to other currencies like Monero, Bitcoin Cash or Litecoin. Each currency has their own unique feature, but they also have their own marketplaces. These marketplaces can offer bigger discounts on goods and services.
When you're done, swap back to bitcoin.
2 - Keep track of your expenses
It's good personal finance practice and also helps with tax - theft - reporting. Use wallets that let you label and export transaction history. It makes the tracking and reporting process simpler.
3 - Secure your privacy
Privacy is about control over your data visibility. Use non-custodial wallets which respect your privacy and sovereignty. As the bitcoin price rises, and you have a lot of bitcoin, practice good OpSec behavoirs.
Conclusion
In this new bull market, take advantage of bitcoin's increases in purchasing power. Use good wallets for a smooth user experience.
Seize the moment.
Rare Passenger / Block 830 522
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