Peter McCormack has mentioned a couple of times that he's postponing (or considering it?) his tax payments so that instead of paying x amount of BTC's worth now he can pay them a fraction of x BTC's worth at some later point.
Apparently in the UK, if you don't pay your taxes on time, they'll send you reminder letters and you can postpone it for a long time without serious consequences, like hefty fines. The worst they will do is add some meagre interest.
So postponing your tax payments is effectively an interest-free or low-interest loan from HMRC (if you believe you owe them anything to begin with) you're guaranteed to get, regardless of your credit history.
It's a speculative attack on fiat and its mispriced discount rates. Discount rate arbitrage.
They think the 5% or whatever interest they're charging you is a lot and that it's enough to scare you into paying on time; little do they know...
I've applied this approach myself in a more softcore version to two things recently:
- My water bill.
I used to pay twice a year - in March and September, for 6 months up front. My next bill, £267, was due by the end of this month. I looked at the water company's website yesterday and found I could switch to monthly payments. So I switched to paying monthly, which compared to the semi-annual payments was like a zero-interest installment plan. Not only that: the first payment I'm due is on May 1st! So no water bills for me for another 6-7 weeks.
I don't need to tell you where that £267 went.
- My mortgage.
I had made overpayments on my mortgage a long time ago and had forgotten about it. My mortgage allows me to underpay from the overpayments made in the past.
I was due a payment last week. The day before I called the lender and arranged an underpayment, and ended up not paying at all this month. It means my monthly payments will go up a bit in the future, but at the 3.39% interest rate it was a no-brainer.
An extra £770 not debited from my bank account and exchanged for you-know-what.
I watched bitcoin in late 2017 as a pure investment, Like the stocks I had been buying my whole life. Pure fiat mindset. I thought I was clever not buying the top and jumped in at 15k. I never sold that first stash, but I ignored it until the covid thing in early 2020. Looking back, my traditional investing mindset was a problem. I missed the 2018 bear market, and I missed the early 2020 covid crash too. I was focused on my fiat investments.
We do things a bit odd here: "MVB" minimum viable beta. Try to burn as little devel and support time while you try out ideas. These things take time to build on btc, so keep burn low and "days alive" long. We have zero W2 employees including me and no spending commitment greater than 30 days.