If you got into bitcoin because you believe in its ability to store the value of your labor long into the future, you probably would like to see some price stabilization into the future. Well, here’s a number of things that you can do to help support the price of bitcoin.
Doing Your Part To Support The Price Of Bitcoin
What ultimately drives the price of bitcoin is buying bitcoin off of the order books at Bitcoin exchanges but there’s more to it than just buying. Even keeping your bitcoin on an exchange can be part of price suppression. In order to preserve the value of our labor stored in bitcoin, there are steps that we can all take to help to support the price of bitcoin.
Dollar Cost Average (DCA)
When you buy bitcoin, you are helping to put upward pressure on the price by filling an open sell order somewhere on a Bitcoin exchange and that is great. In order to keep continual upward pressure on the price, we need continual buy support from as many bitcoiners around the world as possible. Buying bitcoin on a recurring schedule with dollar cost averaging (DCA) keeps continual upward pressure on the price and ensures that you buy more when the price is declining and less when the price is rising.
When you buy bitcoin on a recurring schedule with a DCA purchase, you are helping to support the price of bitcoin.
Buy The Dip
Buying on a recurring schedule is a good way to insulate yourself from price volatility but sometimes the price takes a dump when a whale sells off a large amount of bitcoin. These large sells can cause the price to dip quickly but they tend to not last very long. When you buy the dip, you stack sats at a lower rate and also helps to support the price of bitcoin by a tiny amount.
Accept Bitcoin
Accepting bitcoin does two things to help increase bitcoin’s value. When you accept bitcoin, you are keeping bitcoin circulating in the market and not being sold off back to an exchange. You are also increasing bitcoin’s utility by not just using it as a store of value but also using it as a medium of exchange. As more and more people accept bitcoin and want to actually HODL it, they are fulfilling 2/3 of what money does. All that needs to happen after this is to be able to use it as a unit of account.
Don’t Sell To Exchanges
When you sell off at an exchange, you are filling open buy orders which puts a tiny amount of downward pressure on the price. By avoiding selling off at an exchange, you are actively helping to support the price floor. Rather than selling, consider spending your bitcoin as money with some fellow Bitcoin plebs or buying gift cards with services like Fold, Bitrefill, or the Bitcoin Company.
If you decide to spend, be sure that you spend and replenish.
Do Not Keep Your Bitcoin On An Exchange
Do not keep your bitcoin on an exchange. If you do, you may be contributing to some sort of fractional reserve bitcoin or having your bitcoin loaned out to other financial institutions via something called rehypothecation. There is no way to know if the exchange that you use actually has 100% of the bitcoin that they say that they have.
When you buy bitcoin, move it to an address where you have control of the private keys. There’s nothing more important to hyperbitcoinization than taking self custody, so I implore you to properly learn how to generate and secure your seed phrase and research different seed phrase storage products to keep it safe.
Only Spend Bitcoin With HODLers
If you decide to spend your bitcoin, you should only spend with other people who actually want to HODL the bitcoin. Too many people and businesses seem to view bitcoin as some sort of cheaper version of PayPal that only has value as a payment network. Bitcoin is so much more than a payment network.
When you spend bitcoin with other bitcoiners, you keep bitcoin circulating rather than going back to an exchange to be sold for fiat and push the price down. When bitcoin circulates within the global economy, it functions as it is intended to; as peer-to-peer electronic cash.
Spend And Replenish
If you do decide to spend your bitcoin (and hopefully you only spend with other HODLers), be sure to do your part to increase the number of bitcoins out in circulation by replenishing your supply once you’ve spent. If you don’t already accept bitcoin, do what you can to help others to be able to spend their bitcoin with you.
Spend with other bitcoiners and replenish when you do. If other bitcoiners spend with you, help them to replenish. The more we all spend and replenish amongst ourselves, the stronger the Bitcoin circular economy becomes and the less relevant banks become.
Share These Values With Other Bitcoiners
Help other bitcoiners to employ these values. The more Bitcoin users who understand and implement these values, the more we all help to support the price of bitcoin. Do whatever you can to spread the use of quality tools that promote good privacy and help more users to accept bitcoin, hodl bitcoin, and use bitcoin in daily life.
Here are just a few ways that you can help spread the good word of bitcoin.
- Create YouTube videos.
- Start a podcast.
- Write a blog.
- Host a meetup in your local community to help bring new users into the Bitcoin space.
- Translate Bitcoin content if you are multilingual.
- Develop apps and software that help to increase bitcoin’s utility.
- Contribute to open-source projects that help people around the world to start their own Bitcoin-related projects.
Do whatever you can to help new users around the world to get started with bitcoin. The more of us that there are, the more of us that are all putting upward pressure on the price.
Final Thoughts
To help support the price of bitcoin, keep buying the dip. Keep accepting bitcoin. Don’t keep your bitcoin on an exchange and don’t sell to exchanges for fiat. When you spend bitcoin, make sure you do it with HODLers and replenish afterwards. Support Bitcoin businesses that are helping grow the Bitcoin space and even start your own Bitcoin business that produces a Bitcoin-related product or service.
The more of us that are doing any or all of these, the more upward pressure we will help to support the price of bitcoin.
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