You can save more if you buy things with bitcoin

Lets consider two examples in a bull market instead of sharing opinions or any economics lessons:

Example 1

Alice has 10 BTC in cold storage, 1 BTC in hot wallets and some amount in fiat as cash, card etc.

Bob has 10 BTC in cold storage, 1000 USD in bank account and undisclosed amount as cash, card etc.

Both use 100 USD per month at KFC. Why? Because they love chicken. Only difference is that Alice pays with BTC and Bob pays using bank account. Alice buys gift cards from Bitrefill one day before going to KFC. For easier calculation, assume Alice bought gift cards on 15th of every month.

31 October 2017:

Alice has 10 BTC in cold storage, 1–(0.125–0.1–0.083–0.085–0.058–0.043–0.052–0.023–0.03–0.0175) =0.38 BTC in hot wallets and some amount in fiat as cash, card etc.

Bob has 10 BTC in cold storage, ZERO USD in bank account and undisclosed amount as cash, card etc.

Alice saved 0.38 BTC more than Bob in 10 months by using bitcoin for payments.

Bitrefill has lot of gift cards that you can buy using BTC including Uber, OLA, Paytm, Amazon, MakeMyTrip, Google Play, Bigbasket, BookMyShow, CCD etc.

Lets consider another example in which Alice works for a company, buys BTC regularly with salary to use for payments.

Example 2

Alice has 10 BTC in cold storage, 0 BTC in hot wallets and some amount in fiat as cash, card etc. Works for a company and uses a part of salary to buy BTC on 1st of every month.

Bob has 10 BTC in cold storage, undisclosed amount as cash, card etc. Works for a company but salary is not used for buying BTC.

Both use 100 USD per month at KFC. Why? Because they love to enjoy life. Only difference is that Alice pays with BTC and Bob pays using bank account. Alice buys gift cards from Bitrefill one day before going to KFC. For easier calculation, assume Alice bought gift cards on 15th of every month.

15 Jan: Alice had bought 0.1 BTC with 100 USD on 1 Jan which is now worth 80 USD so has to add 0.025 BTC from cold storage to buy KFC gift card. Adds 0.025 BTC back to cold storage by buying from a P2P exchange as its saved for long term or emergency.

15 Feb: Bought KFC gift card with no loss.

15 March: Bought KFC gift card with no loss.

15 April: Saved 0.01 BTC

15 May: Saved 0.0125 BTC

15 June: Saved 0.003 BTC

15 July: Alice had bought 0.04 BTC with 100 USD on 1 July which is less than 100 USD now so has to add 0.011 BTC from savings to buy KFC gift card.

15 August: Saved 0.014 BTC

15 September: Alice had bought 0.021 BTC with 100 USD on 1 September which is less than 100 USD now so has to add 0.01 BTC from savings to buy KFC gift card.

15 October: Saved 0.005 BTC

31 October 2017:

Alice has 10 BTC in cold storage, (0.0445–0.021) = 0.0235 BTC in hot wallets and some amount in fiat as cash, card etc.

Bob has 10 BTC in cold storage, and undisclosed amount as cash, card etc. Paid 1000 USD for payments at KFC from bank account.

Alice saved 0.02 BTC more than Bob in 10 months.

There can be so many other ways to manage your BTC holdings, different strategies to buy BTC regularly, keeping most of the amount as savings in cold storage, use some amount for payments, etc.

https://www.youtube.com/watch?v=FYo5E7zT-vM

Long term savings, number go up etc. is okay however bitcoin transactions play an important role in Bitcoin and payments using bitcoin that cannot be censored by banks or governments are always going to be interesting.