Below is a full transcript of the video.
Welcome everyone, my name is Julian and I am one of the cofounders here at TenX.
I am in a very wonderful city here in Europe. I am not revealing too much, because I am currently on my way to the central bank here to talk with them about a potential banking license.
The topic I want to talk about is “Why would people want to spend their cryptocurrencies if they are betting on the value of cryptocurrencies going up?”
At the moment we have two types of customers at TenX. The first type is someone who lives in a country where this person doesn’t trust their local government, they don’t trust their local currency as much. They trust cryptocurrencies more than they trust this other currency because of inflation or corruption. They are eager to keep their money out of fiat.
Most of the time, this answer comes from individuals who live in first world countries, who do trust their local government. Why would such individuals spend their cryptocurrency? That’s one of the biggest challenges- if you live with currencies that are deflationary, where you expect the value to go up. This leads to people not wanting to spend their currency as they believe the value will go up.
Most people receive their income in traditional fiat. What they can do is, put $500 in the TenX card at the beginning of the month. Convert that, and spend it. At the end of the year, you should have some left over, even though you are still spending $500 every month. Cryptocurrencies go up in value more often than not. Of course, there are a couple of caveats. The first is that cryptocurrencies will increase in value. The second is that cryptocurrencies are still volatile, and is still subject to fluctuations.
There are many stories about people using our system, putting Bitcoin, which was worth $3000. They bought something at Starbucks, every morning, $5. At the end of the month, 30 days, you should have $150 less on your balance! But these people then had $4000 because Bitcoin went up so much during this time.
This is not investment advice, this is just to illustrate the point that even though you expect the value of something to go up, you can still use it. This is because you are not doing a one-time investment, but over time, for example on a monthly basis. This has real use cases.
Imagine. In 2017, you put in a 50/50 split of Bitcoin and Ethereum. Let’s say $100 in Bitcoin and $100 in Ethereum. Do this every month, and you would have spent $200 every month. Just looking at how Bitcoin or Ethereum had gone up, you would have already made quite good money, despite spending $200 per month.
Would I recommend doing this with money that you need? No, but if this is money that you are going to spend anyways, like for a morning coffee, then this might be for you. Once cryptocurrencies start to stabilise, and you are not expecting it to go up as much anymore, this problem will start to disappear.
I hope this makes sense, and if it does, give us a thumbs up for this video, subscribe to our channel here. We do not just talk about TenX, we talk about general topics relevant to crypto. We really want to educate the public, please join our community.
All the best from Europe, I have to go into a meeting right now.
Have a great week, see you at the next video.
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Why would anyone want to spend cryptocurrencies (if they keep going up)? — Transcript was originally published in TenX on Medium, where people are continuing the conversation by highlighting and responding to this story.