You can spend Bitcoin on Black Friday deals, but should you?

Black Friday is upon us, and shopping outlets have been trying to catch your eye with deals all week. But where does crypto come into all of this? On the one hand, you can spend some of your wealth and still save money with steep discounts on various luxury goods. On the other hand, cryptocurrency isn't like fiat money: its volatility means that you might be better off holding and spending at a later date. Let's take a look at the options.

Bitcoin Black Friday Deals

It used to be very difficult to spend cryptocurrency on goods and services, but we've come a long way since 2009, when Bitcoin was first used to order pizza. Nowadays, quite a few companies accept cryptocurrency as payment, and some have tempting Black Friday deals running.

For example, NewEgg, a popular site for buying crypto mining equipment that also stocks every kind of computer component and tech accessory, accepts cryptocurrency. So does electronics retailer Rakuten. The Microsoft online store also has some steep discounts on hardware and software. If you're in the market for a new car, BMW and Lamborghini accept BTC, and the latter has a Black Friday week promotion (for their merchandise, before you get too excited).

Many shoppers are looking to Amazon for their holiday purchases, and although the site doesn't accept crypto directly, there are plenty of online services that allow for the purchase of gift cards for the e-commerce giants (and other retailers) that you can find to take advantage of the sales.

So, if you've had your eye on some new tech toys or are willing to go the gift card route, you could dip into your crypto reserves and take advantage of Black Friday deals. But is it a good idea?

Should you hodl for a better time?

Everyone in trading, especially crypto trading, knows the emotional power of FOMO (fear of missing out) and how it can affect our decisions in the short term. Limited-time offers, such as Black Friday discounts, directly play on our FOMO, but when it comes to cryptocurrency, one has to think about potential long-term and short-term gains.

Let's look at an example from the recent past. In 2019, Newegg had a deal on a Samsung 43-inch TV ($479.99, $302 in savings). At the time, Bitcoin was worth $7,159 on 26 November, so you would have saved 0.42 BTC (4%). Not too shabby, but if you had held on, you might be happier with more money.

At the time of writing, Bitcoin is worth much more than in 2019, trading at $56,000, even during the current slump down from a recent all-time high. At today's prices, 2019's $302 in savings are only around 0.005 BTC (0.5%)! The price of BTC rose 782% in the intervening years, so investing that $302 savings into just buying more BTC in 2019 would have earned you $2059 in profit if you were to withdraw it today. In the long term, the smart thing might be to buy crypto on Black Friday, not to spend it.

Watch for the signals!

In the end, the choice is yours. After all, what's the use in hoarding money and never spending it on things we enjoy? Whatever you decide, StormGain is still the best place to manage your crypto holdings during Black Friday Week. Don't forget to join our Black Friday promotion to get a special drop of trading signals that will help you make the right moves on the market for maximum profit!