by AgentR11 » Sun 27 Apr 2025, 14:44:54
$this->bbcode_second_pass_quote('AdamB', 'A')nd if memory serves, I once asked you how I could have performed my last motorcycle sale using BTC, and you referred me to a book or paper on the subject.
In the case of the motorcycle, I can at least see HOW I could take a Kruggerand, slice off some chunk of it, and hand it to someone. But having no bitcoin account, if I did, is it like sending someone money using Zelle or something like that? I HOPE that the buyer has a BTC account, he HOPES I have one as well, and I send his email/phone number some bitcoin?
There aren't "BTC accounts". There are wallets and addresses. You create the wallet yourself out of a string of random words that you choose. For non-interesting amounts, you can do this with a phone app. Once you have a wallet, the seller can create a send-to-me address; you (owning bitcoin on your phone), can scan a QR code generated by the seller that has the info of that send-to-me address, and SEND SOME BITCOIN to it. That SEND command gets munched up into the ether, and will (usually) clear via so-called "miners" in some non-trivial amount of time. When it clears it registers in the sellers wallet, less a modest processing fee that the miners keep. Keep in mind, this is NOT a zero timespan activity.
It *DOES* work. I have used it. It is an absolute, royal pain in the butt to account for properly, as the transaction is a capital gain/loss that you have to record at the time you execute the SEND command, and then report at the end of the year on your taxes. No where near worth the trouble to buy a pizza with. I could see buying or selling a motorcycle or high end desktop computer, or even real estate or gold... maybe.
A funny side note, while I did spend most of the half-bitcoin I bought long ago, the leftovers that sit on my phone are now worth over twice as much as what I paid for that initial blob of bitcoin, and are actually worth more than the phone itself. I just ignore it for the most part; its not really worth the trouble to cash-out, nor spend, I keep it more as an amusement. So while I have other stuff as a store of value, I have little interest in saving up bitcoin. I have no confidence that the events that would cause me to want to spend the bitcoin, would nicely align with events keeping bitcoin value high. There is nothing out there to stop bitcoin from falling to $10/btc at the same time I want to use it. Gold is better, bonds are better, equities are better, though none are guaranteed to retain value, I think their odds are adequate to my needs.