BombOmOm

Have you considered buying two extra BMWs and doubling the size of your house? Gotta live paycheck to paycheck and make those neighbors jealous!

Lifestyle inflation.

People are really, really good at spending all their money, then living paycheck to paycheck with their BMW and too-many-sqft house payment.

Which digital payment doesn’t have transaction fees?

Credit cards (vendor side), debit cards (vendor side), and crypto (consumer side) all have transaction fees. Paypal, venmo, etc all make their money from (vendor side) transaction fees as well. Is there a different type of digital payment you are using that doesn’t have transaction fees?

Every digital payment has transaction fees, yes.

Credit card transaction fees for vendors are generally 1-3%, for example.

Clearly, you’re not from this planet…we’re going through a shitty period right now

looks at crime stats / looks at quantity and scale of wars / looks at quality of sanitation

Naw, we have it pretty damn good compared compared to basically all of history.

Certainly doesn’t mean we shouldn’t strive to continue to improve.

Pay same in cash or credit.

Depends on the vendor. There are a bunch of places around me that offer cash discounts, which I make solid use of. Lets them lower prices for you as you aren’t forcing a credit card transaction fee onto them.

Yeah, there are a bunch of places around me that offer cash discounts which I make solid use of. Lets them lower prices for you as you aren’t forcing a credit card transaction fee onto them.

Things are often measured in mBTC or µBTC for this exact reason.

Just as you don’t measure the length of an ant in meters, you measure it in millimeters.

Fiscally responsible people do it because of the cash back/perks and 0% interest.

Fiscally irresponsible people do it because ‘free money’ (ignoring the 28% annual interest).

Credit cards also offer better consumer protections than debit cards. Ex: chargebacks.

A lot of platforms literally don’t support debit cards.

You can get a Visa debit card from your bank; everyone takes Visa.

A credit card, in the US, has a transaction fee for the vendor, 1-3% of the purchase price, sometimes with a flat few cents fee on top.

The consumer has no transaction fee, but does pay interest (around 28% annually) if they don’t pay off the full balance every month (if they do pay it in full at the end of the month, there is no interest charge). Usually there will be a 1-2% cash back for the consumer as well.

Some credit cards also have an annual fee for the consumer. These generally have higher cash back rewards and higher vendor transaction fees than those that don’t.

I learned recently FedNow is a payment processor ran by the Federal Reserve, with a fee of $0.043 per transaction. Making it much, much cheaper than every other payment processor out there.

It just launched two years ago; I’m wondering if this might become more of a thing moving forward for digital payments.

A dollar in fees is a dollar more than with fiat for the person paying.

Average credit card transaction fee is ~2%. So a dollar of Bitcoin fees makes Bitcoin cheaper for any purchase over $50.

The current Bitcoin transaction fee is $0.67. Which means for a purchase larger than $34, Bitcoin is cheaper than the average credit card transaction fee.