Astonishing. I've taken a similar approach but I'm considering taking it further, literally running my entire business on bitcoin only, literally not holding cash any longer than it takes to convert it to fiat to pay a contractor or a bill (And trying to work with parties that will take Bitcoin) And I will be offering a 10% discount to anyone paying directly in Bitcoin.
Volatility is the tricky one, but of course if your cash flow is good then it actually doesn't matter.
Are you concerned about the environmental impact of the energy use to maintain Bitcoin? On a completely different level, you talk about the limited supply of Bitcoin making it 'inflation proof', but other crypto currencies can enter the market and essentially devalue Bitcoin by increasing supply.
Great questions! (Sorry in advance for a lengthy answer but I think it's important to understand)
Energy Usage: The current financial system consumes a LOT more energy than Bitcoin. Since the creation of the Petrodollar system the US has spent billions of dollars and consumes massive amount of energy fighting wars in the Middle East to protect the integrity of the US dollar. And other assets like gold require huge amounts of energy to mine.
Secondly, energy consumption is not a bad thing as long as you can justify the value. For example, no one questions how much energy the internet uses because we get so much value from it. Bitcoin is helping unbanked individuals in Latin America and across Africa to access a monetary system for the first time and this is only going to increase. Bitcoin currently consumes about 0.55% of the worlds energy. That’s really not that bad to run a global payments system that’s more efficient than gold or the petrodollar.
Finally, the energy used to mine Bitcoin is what makes the network so secure. In order to attempt an attack on Bitcoin you would require an unimaginable amount of computing hardware and real world energy. This is what makes Bitcoin literally unstoppable (and a lot stronger than other crypto currencies).
In reality, Bitcoin mining’s energy mix is about 70% renewable and is helping to accelerate the development of green energy sources. Bitcoin miners are doing all sorts of creative things to find the cheapest source of power and take advantage of wasted energy like the water drained from over full dams or vented gas from gas fields.
Other Cryptocurrencies: Cryptocurrency is not the same as Bitcoin. Just like the NZD isn't the same as the USD. So if New Zealand creates loads of new dollars, this doesn't weaken the USD, it only weakens the New Zealand dollar.
Volatility is the tricky one, but of course if your cash flow is good then it actually doesn't matter.
On a completely different level, you talk about the limited supply of Bitcoin making it 'inflation proof', but other crypto currencies can enter the market and essentially devalue Bitcoin by increasing supply.
Energy Usage:
The current financial system consumes a LOT more energy than Bitcoin. Since the creation of the Petrodollar system the US has spent billions of dollars and consumes massive amount of energy fighting wars in the Middle East to protect the integrity of the US dollar. And other assets like gold require huge amounts of energy to mine.
Secondly, energy consumption is not a bad thing as long as you can justify the value. For example, no one questions how much energy the internet uses because we get so much value from it. Bitcoin is helping unbanked individuals in Latin America and across Africa to access a monetary system for the first time and this is only going to increase. Bitcoin currently consumes about 0.55% of the worlds energy. That’s really not that bad to run a global payments system that’s more efficient than gold or the petrodollar.
Finally, the energy used to mine Bitcoin is what makes the network so secure. In order to attempt an attack on Bitcoin you would require an unimaginable amount of computing hardware and real world energy. This is what makes Bitcoin literally unstoppable (and a lot stronger than other crypto currencies).
In reality, Bitcoin mining’s energy mix is about 70% renewable and is helping to accelerate the development of green energy sources. Bitcoin miners are doing all sorts of creative things to find the cheapest source of power and take advantage of wasted energy like the water drained from over full dams or vented gas from gas fields.
Other Cryptocurrencies:
Cryptocurrency is not the same as Bitcoin. Just like the NZD isn't the same as the USD. So if New Zealand creates loads of new dollars, this doesn't weaken the USD, it only weakens the New Zealand dollar.