How to Convert BCH to Your Local Currency

 

How to convert Bitcoin Cash (BCH) to your local currency

First of all, users must beware that they can spend their Bitcoin Cash (BCH) directly online through wallets like Cashpay with 0 commissions. However, if you still want to convert your bitcoin cash holdings to your local currency, you can do so through exchanges. Bitcoin Cash (BCH) exchanges include Coinbase, Bitstamp and Gemini. Another way to convert your bitcoin cash to a government currency is by using platforms such as localbitcoincash.org, where people from different cities/countries sell and buy bitcoin cash from other locals.

The advantages of bitcoin cash versus a local currency

The main difference between bitcoin cash and government currencies is that Bitcoin Cash, also known as Bitcoin (BCH), is deflationary. This is an economic term to indicate something that the longer you hold the more precious (more rare) it becomes because the amount in circulation doesn’t increase. With government money, on the other hand, the the opposite is true: the longer you hold onto it the less valuable it becomes, because with time more and more banknotes are printed.

For a visualisation of this we recommend this tool that allows you to calculate how much government money has depreciated over the years.

If you had $1 in 1970, today you would need $5 to buy the same amount of stuff as $1 allowed you to buy back then. In other words, in almost 50 years the US dollar has depreciated 5 times. If you had $100k in 1970 and decided to save it, today you would be able to buy 5 times less than what it would allow you to buy in 1970.

With bitcoin cash you are protected from this phenomenon. If Bitcoin (BCH) was used as global currency back in 1970 in parallel with the USD, and you had saved $100k back then, today that amount of Bitcoin Cash (BCH) would be worth $500k.

We recommend: do not convert your bitcoin cash to government currency

This is money you earn through hard work. If your hard work is worth $100 today, those who get paid in USD have to spend it quickly to get back the same quality or amount of services as they provided to earn those money. Those who get paid in bitcoin cash, on the other hand, can spend their money at any time and always get the same amount of service, if not better, than the amount of service/work they had to deliver to earn those money.

By converting your earnings on Fivebucks to a government currency like the USD (which is one of the best government currencies out there) you are giving up on that privilege. In other words, by using government money you are allowing society to devalue the work you did in the past so you always have to work more and more. By using bitcoin cash, because of its deflationary nature, nobody can devalue the work you did even if it was 50 years ago.

For this reason we strongly recommend freelancers to not convert their bitcoin cash to fiat, but to spend it as such and save the rest. If no local businesses in your area accepts bitcoin cash, then we recommend keeping it for online purchases exclusively for now until it becomes more popular in your area.