Episode notes
Sahil Chaturvedi, Designer at Foundry joins me to share his experience of getting on zero fiat and fully embracing Bitcoin as a unit of account. We discuss:
#GetOnZero fiat
Tools required to crossover
Tax implications
Weathering volatility
Using intermediaries to live on a Bitcoin Standard
Summary
Sahil discusses the concept of 'Get On Zero' and the reasons behind it. The conversation explores the concept of 'get on zero,' which means minimizing fiat currency holdings and maximizing Bitcoin holdings. He explains that the idea originated from a Twitter space conversation and grew into a community discussing tactics and strategies for minimizing the amount of fiat currency held. Sahil emphasizes the importance of rethinking the function of fiat currency and considering it as a payment rail to move Bitcoin rather than an asset to hold. He also addresses objections related to fiat-denominated obligations, volatility, and the perception of being a hardcore Bitcoiner.
Sahil highlights the need for specific tooling, including interfaces with the legacy system, instant conversions between fiat and Bitcoin, fiat cards that auto-convert Bitcoin balances, and tax automation. Sahil explains that he personally holds 100% Bitcoin and sees it as a simple and beautiful way to manage his finances. He addresses the tax implications of using Bitcoin as a currency, emphasizing that capital gains tax is only applicable when there is a gain compared to holding fiat currency. Sahil also discusses the challenges and considerations for individuals, families, and businesses in adopting the 'get on zero' approach.
Takeaways
‘Get On Zero’ is the concept of minimizing the amount of fiat currency held and rethinking the function of fiat as a payment rail to move Bitcoin.
Objections related to fiat-denominated obligations can be addressed by considering the function of fiat currency and converting at the last millisecond.
Volatility is a consideration, and building up a balance of savings is important to weather volatility.
Specific tooling, such as interfaces with the legacy system, instant conversions, fiat cards, and tax automation, is necessary to achieve #GetOnZero. The 'get on zero' approach involves minimizing fiat currency holdings and maximizing Bitcoin holdings.
Using Bitcoin as a currency can simplify financial management and eliminate the need to constantly buy and sell assets.
Capital gains tax is only applicable when there is a gain compared to holding fiat currency.
Tooling and technology play a crucial role in enabling individuals and businesses to adopt the 'get on zero' approach.
Considerations for families and businesses include tooling, income vs. expenses, and the need for a cash balance for stability.
Using intermediary companies and physical cash can be alternative ways to spend Bitcoin while minimizing fiat currency usage.
The 'get on zero' approach may not be suitable for those who are strictly anti-KYC or uncomfortable with Bitcoin's volatility.
Timestamps:
(00:00) - Intro
(02:23) - Managing the USD obligations & rethinking function of fiat currencies
(04:43) - Should ‘Get on Zero’ be considered as a ‘purity’ test?
(07:46) - Navigating the volatility of Bitcoin
(13:20) - Tools & services required to ‘Get on Zero’
(19:35) - Sponsor
(20:53) - Tools & services required to ‘Get on Zero’ contd.
(27:21) - Balancing cash and Bitcoin
(30:04) - Tax implications of ‘Get on Zero’ lifestyle
(35:51) - Sponsor
(37:05) - Sahil’s personal experience of getting on zero fiat
(42:16) - Is it practical for families & businesses to ‘Get on Zero’?
(49:40) - Using intermediaries to live on a Bitcoin standard
(51:40) - Managing physical cash, Spending Bitcoin instead of ‘Selling’ Bitcoin
(55:16) - Outro
Links:
https://medium.com/@SahilC0/rethinking-the-function-of-fiat-currency-6263465aa2ff
https://www.tftc.io/author/sahil/
Sponsors:
CoinKite.com (code LIVERA)
Stephan Livera links:
Follow me on X: @stephanlivera
