Oddbean new post about login | logout Would I be able to peg my fiat amount and sweep excess into Bitcoin, like many banks do to money market or repo? Granted, that means I would sell Bitcoin when I pay bills or buy things, but on the other hand I would have more in Bitcoin more consistently.
what do you mean? not sure i’m following
Sweep instead of dca. So if I say I want $2k balance in my fiat account each day, the system can calc what the difference is at the same time each night and execute a Bitcoin transaction to produce that amount. So if I peg my fiat balance at $2k and pay bills from my fiat and have a balance of $1k, overnight the system calcs I need to sell $1k of Bitcoin to go back to my peg. Alternatively if I get paid, excess would buy Bitcoin to go back to my fiat balance of $2k.
using Bitcoin is not the same as selling Bitcoin. In fact the circular economy is KEY to Bitcoin's success. Just "use and replace" to keep things ticking along nicely...
The implication with this is that the fiat balance is pegged and gets used to pay bills. When the bills are paid in fiat, that night the fiat balance goes back to the peg amount. I do not argue with you that using Bitcoin in a p2p fashion is important. And I do not want to sell in large amounts. But realistically I still have to pay most of my bills using fiat. It’s just I want to be in Bitcoin as much as possible until the bills are paid and then replenish to that peg amount to make sure there’s enough for the next bill. The sweep just makes cash flow easier. The potential struggle for Strike would be if someone went negative in their fiat account, to the point their Bitcoin balance could not cover it.