It doesn’t matter that Bitcoin you spent in your past is worth more now

So I see this all over the place, people looking back at past transactions getting upset that they spent essentially what amounts to a $30 coffee or a $40,000 TV, only if they held!

This is a negative way of looking at these transactions and actually damages the economy more.

If you are putting in to crypto as "free" money that you can afford, then it makes sense that you might need to spend it because you have less money free to spend on other things.

For example, something I do is put all of my free / left over paycheck into Bitcoin and leave enough for rent, bills, car expenses, food and enough money for my planned spends and an amount for "savings".

Then if I run out of money in that week I would then spend my Bitcoin (coinjar debit card makes this easier, but at 1% it is quite expensive.)

I wouldn't spend my savings because that was my secure future fund, don't go all in remember.

So if I had run out of money (probably happened every three or four weeks, not super often) I would have to spend Bitcoin.

If I look back and see how my $4 coffee was a $30 coffee today, it doesn't matter, because if I had kept back that $4 from Bitcoin in the first place each week I would have actually had less Bitcoin.

Here are some numbers.

Your Crypto fund per week. $50.

This fund is pushing you to your financial limits after putting away safe money.

So we have two people, me and person B.

Me and B.

Week 1: put in $50.

Week 2: put in $50.

Week 3: put in $50. Take out $4 for a coffee.

Now I keep on putting in $50, B is scared and doesn't want to ever spend their Bitcoin, so they drop the amount in to $46 per week.

Week 4: I put in $50, B puts in $46.

Week 5: I put in $50, B puts in $46.

Week 6: I put in $50, B puts in $46.

So far, I have $296 in my Crypto fund. B has $284 in their fund.

I am doing two things better than B:

I am putting more in, because I am not scared to spend my Bitcoin.

In addition, by putting more in and spending more I am participating more in the Bitcoin/crypto economy rather than the fiat economy of which B is limiting themselves to.

This is why I don't care that I could of had more Bitcoin by not spending it, because that mentality would have actually made me too cautious and I would have far less Bitcoin today.

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TL:DR:

By being willing to just spend Bitcoin if you need to, you create a mentality that lets you put more of your money into Bitcoin, thus overall increasing your Bitcoin fund. In addition this increased activity in the Bitcoin ecosystem increases Bitcoin's usage and awareness. (thus in the long run increasing the price).