Why you should treat your BitcoinCash (BCH) wallet as your saving account

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2 years ago

This is a second part of my BitcoinCash (BCH) series

First being Theory of Burgernomics

Disclaimer: This is not financial advise, these are just my views crafted after deliberate experimentation and analysis.

What do I mean by saving account?

Here's that thing, your fiat money is losing value or purchasing power every moment your fiat is less valuable. If you can buy 1KG of rice for $100 then in 1 year the price may have increased to $105 and your $100 bill can no longer get you that 1KG of rice. Meaning that the inflation has reduced your currency's value by increasing the price of goods and services, in this example the inflation rate would be 5%

That is why saving accounts at banks have an interest rate that is paid to the account holder for keeping currency in that account. The rate of interest may depend from country to country but is never equal or greater than the inflation rate. Meaning you will loss value no matter what.

How BitcoinCash or any good Cryptocurrency is different?

As established in my previous article Theory of Burgernomics, BitcoinCash (BCH) is deflationary in nature. That is instead of losing purchasing power, in theory BCH is able to buy more as the time progresses.

Therefore, the need for a interest rate is already removed as your risk of inflation is already hedge.

Note: This theory works on the premises that you are using you BCH as your only currency and the rates of goods and services are illustrated in the fiat terms.

BitcoinCash Wallet

BitcoinCash Wallet that you would used to hold your coins would then be your main account where you would receive your payment and from which you would spend your hard earned BCH.

Since the deflation rate of the BCH you would be hedged, therefore you can have a long term saving secured.

Your earnings in BCH

Instead of receiving payment for your work in fiat you can ask for payments in BitcoinCash and that you can store in your wallet and save it there.

One of the ways to earn in BCH is Bitworkerss.Cash platform by our very own @CryptoMax Do give it a try. (I am also working on putting my skills to use on it as well)

Others way you can receive some BCH is obviously from Read.Cash and Noise.Cash

Now you can think of this as your saving and when you need something as grocery like Pizza, then you spend BCH to buy in instead of fiat. Overtime you will have to spend less and less BCH for that Pizza.

Why "I am never selling" means?

There are a lot of people that say "I am never selling my Crypto" all the time and are just happy to see the fiat value of their coins rising on some computer screen.

This is a bad concept to be following:

a) Because what's the point of seeing some number rising on a screen when you aren't going to use it

b) Because without any use the coin loses its use case and becomes worthless

A better way:

Would be Never Selling your Crypto for Fiat but using it directly for your needs

If you have the means to directly use your BitcoinCash as a means of exchange then do so, but don't spend more than you should.

Think of it same as you would your bank account, you you aren't going to spend more than 50% of your fiat income then you should spend more than 50% of your Crypto.

Closing Thoughts

Sometimes it can be hard to manage your finances and it can be hard to think out the fiat system that we are so use to, but by a little practice and thoughtful execution you can keep a better control over your Crypto finances.

Moreover, BitcoinCash gives you that power to control and manage your finances in ways fiat can never do.

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2 years ago

Comments

That’s why, I am holding my crypto in BCH because I know BCH has a great future. Hope our country also accept Bitcoin cash as a second payment. Have a good day.

$ 0.01
2 years ago

Keep holding

$ 0.00
2 years ago

I have yet to use bch as bch and not having to convert. There are no shops here in our city that I can do that and I don't see shops online who transacts with bch.

$ 0.01
2 years ago

Yes, that is a problem for a lot of us. But you can use it at some online stores also you can buy amazon gift cards with it.

$ 0.00
2 years ago

You've spoken nothing but the truth. The future of Bitcoincash lies in its general adoption and usage. By spend part of our earnings at interval helps not only ourselves but the coin itself

$ 0.01
2 years ago

Thanks, that's how I see the future to be.

$ 0.00
2 years ago