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  • Battle inflation with bitcoin

    “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” – John Maynard Keynes

    Preserve your wealth in precious metals and consume in bitcoin.

    Did you know that you receive a 3% discount when you spend bitcoin at many places? One of the beautiful benefits about bitcoin is that there are no, or very little, transaction fees when you spend the digital currency. Companies often pass those savings on to their customers.

    For example, I can purchase a gift card with bitcoin to Amazon, Best Buy, Whole Foods, Target, Home Depot, and many other stores at Gyft. I receive a 3% discount when I pay with bitcoin.

    Under the control of the Federal Reserve, inflation in the United States has historically been reported as between 0-5% during stable economic periods. At least those are the “official” government numbers. By using bitcoin to make your purchases, you don’t have to suffer a three percent decrease in your standard of living that is caused by inflation.

    As of right now, the “official” inflation rate in the United States is negative 0.1%. So even during times of negative inflation, you can still increase your standard of living by 3% per year by just using bitcoin!

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    5 Comments
  • 5 thoughts on “Battle inflation with bitcoin”

    1. Overall I am net positive on bitcoin. I use bitcoin in two ways. First I store it and accumulate more a little at a time for long term investment. The other way is for sending and receiving where I instantly convert into something else. Volatility in bitcoin has been there because of the normal growing pains during the early adoption stage. As its adoption rate increases and more is lessons are learned more people will begin to see its value. To be able to send unlimited amounts of money for pennies anywhere in the world and make that capability accessible by anyone with a smart phone or computer without the involvement of banks or governments is huge. As an investor you should know that nothing is perfect including gold and silver which has experienced heavy market manipulation by banks. You need to know the strengths and weaknesses of what you are investing in. I consider gold, silver, and bitcoin to be great for the long term investment, but only bitcojn and cryptocurrencies are practical for remote transactions because of their portability and security. I applaud Amagi for its forward thinking.

    2. Bitcoin was $13 each on December 12, 2012 when Amagi started accepting them. Perhaps I am not like the masses I cashed out of all of my bitcoins when they hit $900 and bought a several hundred ounce mix of gold and silver bullion from Amagi, so they lost a good deal on the bitcoins I used.

    3. Also, that “3% savings” when using bitcoin is not exclusive to bitcoin. Many retailers offer a 3% or more discount when customers pay with federal reserve notes or U.S. treasury coins (collectively, “cash”).

    4. Bitcoin has lost over 70% of its value in the past year. Why on earth would i buy bitcoin to battle inflation? I will gladly buy gold and silver to battle inflation. I think Amagi has a bunch of bitcoin it accepted when it was over $1000 a coin now they wish they had only stuck with gold and silver.

      1. Amagi actually started accepting bitcoin when it was $12, so we’re doing quite well. We are not suggesting that you preserve your wealth in bitcoin. Sure, bitcoin has lost over 70% of its value in the past year. However we are suggesting that you preserve your wealth in precious metals such as gold and silver. That will protect your wealth from inflation over the long-run. You can convert your fiat to bitcoin, only what you want to spend, and get an instant 3% discount when you spend those bitcoins. Even if you have to use an exchange, which takes anywhere between 0.5% – 1%, you are still saving 2-2.5% on every purchase that you make. If you want to do more than just consume in bitcoin, you can also use a hedging service, such as bitreserve, to hedge your bitcoin to a commodity such as the dollar. That way when you go to spend, your bitcoins are tied to the dollar, and you can still get that 3% discount. Preserve your wealth in precious metals, consume with bitcoin.

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