Many people want to be “rich”, but can’t articulate what they would do with their riches.

Since wealth is typically measured in fiat money, extravagance often comes to mind. Spend your worthless money on excess before it’s gone. 

We can’t understand the value of a dollar if the dollar constantly loses value.

Bitcoin changes that - it expands our time horizon. 

As a money whose purchasing power increases as fiat value decreases, we are incentivized to save and not spend our Bitcoin.

It is unrealistic however to think we will never spend our Bitcoin; that we will “Hodl” forever.

Instead, we must thoughtfully and intentionally plan our spending.

What is “worth” spending our Bitcoin on?

Certainly not a Lamborghini!

Here are 5 things to consider when planning how to spend your Bitcoin:

1.  Benefit Others, Not Just Yourself

Consider spending your Bitcoin on something that will benefit others. The value that your Bitcoin enables will be multiplied if it impacts your friends, loved ones, community, etc. Do something useful, helpful, meaningful - something that will help the greater good.

2.  Short Term vs. Long Term

Bitcoin is often considered a long term investment. Think of the life of what you plan to purchase. Is this something that will be used quickly, or last for a long time? What is worth your Bitcoin?

3.  Target Price

Be mindful about how much Bitcoin you are willing to part with. Bitcoin’s price fluctuates with global liquidity cycles, so it will go up and down. It’s unpredictability makes selling for “profit” challenging. But if you start with how much you are willing to spend, you can set a target price in your mind to purchase what you’d like. Then it’s just a waiting game.

4.  Generate Wealth

If you are spending your Bitcoin, you’ll want what your buying to be worth the opportunity cost of not having Bitcoin. Think about buying something that will generate returns over time, like a small business.

5.  Who Gets It?

When you sell your Bitcoin, it goes to an exchange. But you may be able to buy what you want directly with Bitcoin. You would transfer your Bitcoin to the seller. So you may want to consider who you are giving that Bitcoin to. Are they prepared to receive it? What would they do with it? 

Bitcoin gives us the opportunity to transfer wealth over time. Although it is a currency, we do not spend it lightly.

Be mindful with your coins friends.