Olaf Carlson-Wee, 3 years of using only Bitcoin
His name is Olaf Carlson-Wee, let’s just call him Olaf. Since becoming the first employee of Bitcoin startup Coinbase in February 2013, Olaf has done his best to live on Bitcoin. So how does he do it?
When he first started working, he was paid in Bitcoin instead of US dollars. At that time, one Bitcoin was worth $20-30. (As of press time, one Bitcoin is now worth $450.) He said:
“At that time, most people didn’t know what Bitcoin was, and only a few people saw the business opportunities in it, so I had the opportunity to store a large amount of Bitcoin and wait for it to appreciate.” Since Bitcoin is so unpopular, it is difficult for Olaf to explain his job to his friends and family. But Olaf has an inextricable bond with Bitcoin. His undergraduate thesis was about Bitcoin. After work, he wanted to receive a fixed amount of Bitcoin as salary every month, but no company could provide it. So he could only receive US dollars and then convert them into Bitcoin for consumption. “For me, the biggest benefit of using Bitcoin for payments is the mindset change, which means my ‘default’ currency is Bitcoin, and I have to convert it to USD when I need it. So the barrier is that I can only shop at Bitcoin-supported businesses, pay my rent with Bitcoin, and accumulate my wealth with Bitcoin.” So why does he have to use Bitcoin? Here’s what he said: “I think Bitcoin is a more democratic version of money because it’s not controlled by anyone… The internet will outlive any country, so a country-based currency is not as secure as Bitcoin.”
However, when Bitcoin is not yet popular, there are still many difficulties in using Bitcoin for consumption entirely. Let's take a look at how he overcame these difficulties over the past three years through a set of questions and answers. Q: How do you use Bitcoin to pay for your daily expenses?
A: I pay my rent directly to my roommate in Bitcoin, and he pays the landlord in USD. When I go out to eat, I ask one of my friends to pay for me in USD first, and I give him Bitcoin. Coinbase (Olaf's company) recently launched the "Shift debit card" feature, which allows any merchant that accepts credit cards to pay with Bitcoin. The principle is to deduct Bitcoin from your Coinbase account. However, the merchant cannot see the Bitcoin because the system has already converted the Bitcoin into USD to pay the merchant. Many services have emerged to survive solely on Bitcoin. As time goes by, Bitcoin payments will become more and more common. I use Bitcoin to buy goods or services, and the merchant also accepts Bitcoin. At this point, Bitcoin's convenience in transactions is also reflected. More and more merchants are accepting Bitcoin payments, including e-commerce Overstock , which means I can buy goods directly online, such as desk lamps; and, I am a geek, I will also buy some high-tech products, VPNs or server space. These merchants are the first merchants to pay Bitcoin because their users have many overlaps with Bitcoin users. Therefore, it is not difficult to buy things online with Bitcoin, but the difficult part is daily expenses. "Shift debit card" has alleviated this problem to a certain extent. Q: Why and how do you want to accumulate your wealth with Bitcoin?
A: At the end of 2012 and the beginning of 2013, I realized that Bitcoin would be a huge market, but many people had not heard of Bitcoin. I thought this was a good opportunity for me to enter the market ahead of others.
Now, I have two main reasons for Bitcoin: First, venture capital. I think Bitcoin can appreciate further, so I also hope to further increase my purchasing power, but I will not sell Bitcoin, but keep it until one day, Bitcoin becomes a mainstream payment method. Another reason is my own concept. I tend to control my own money. Since the financial crisis in 2008, I believe that many people have realized that banks and banknotes are not as safe as they think. Money in the bank may be an abstract concept and not real. For me, Bitcoin is more real. I know how to control it, its inflation rate, and how Bitcoin is created. Q: When you pay Bitcoin to your roommates or friends, will they be reluctant to accept it?
A: I have successfully convinced all my friends to accept Bitcoin. It would be a lie to say that this process is super easy, but I convinced the vast majority of them in 2011, 2012 and 2013. Some of them have made profits from Bitcoin, and some have seen the appreciation of Bitcoin. They are all optimistic about the development of this technology, so this is a sure-win business.
Q: Have any friends ever complained: I gave you 50 US dollars, exchanged it for some Bitcoin, and now it is only worth 20 US dollars? ? ?
A: Of course. Some bitcoins are worth twice as much as they were then, and some are worth half as much. Q: Do you have a credit card or savings account?
A: Yes. Q: Did you apply for student loans?
A: Yes.
Q: That is to say, you are gradually building your own credit system, but does the banking system know about your existence?
A: Of course I do, but to be honest, I don’t think it’s important. Q: What proportion of various living expenses does Bitcoin account for? A: Since my rent is paid directly to my roommate, all rent accounts for 50%-60%, merchant Bitcoin payments account for 20%, and cash and US dollar conversion accounts for about 20%. Q: How do you buy a house?
A: I would use USD. There are real estate developers that accept Bitcoin, but that limits my options to a very, very small number.
Q: In the event of your death, how do you ensure your Bitcoin is transferred to the people you want it to go to?
A: Actually, this is not a problem. I can open a multi-factor authentication wallet and write down how to open it in my will. The heirs can just find the safe, take out the will, and the password stored in a special flash drive, combine these to generate the key, and then access my Bitcoin account. Q: Under what circumstances would you sell your Bitcoin?
A: For me, the scariest thing is probably the emergence of inventions like quantum computers. But even so, I may not necessarily sell it, because Bitcoin is essentially software and can be updated. Even if breakthroughs like quantum computers appear, Bitcoin miners, developers and users can make timely adjustments. Q: How has your net worth changed over time in U.S. dollars? A: It has changed a lot. The change in the value of Bitcoin from 2011 to now basically reflects the change in my personal assets. I am still young, I don’t have to worry about long-term savings, so I am willing to take risks on things I think are worth it. But it’s not for everyone. If I had children and a mortgage, I might not do it. Q: Are there any changes in the process of using Bitcoin? A: When I first started, I said, "Hey, bring me a pizza and I'll pay you in Bitcoin." Most people would say, "You're crazy!" But now when I say this, even if some people don't have a Bitcoin account, they at least understand what I'm talking about. | 
