I accept precious metals, bitcoin and some cryptocurrency in addition to our standard fiat currency. Why? The long answer: to gently challenge ubiquitous notions regarding wealth, value, and the exchange for goods and services. The medium answer: to avoid paying the fees and effort of getting it myself. The short answer: because I can.
Which precious metals in particular? I'll accept silver bullion coins, copper bouillon coins, fractional (less than an oz) gold, platinum and palladium. I'll accept “junk” silver- pre 1965- coins too- in increments of $1.40 since that amount contains about an ounce of silver. The value of each precious metal is based on the market value of the moment- the “spot value”-excluding artistic value. I'm not a numismatist.
By accepting precious metals as payment, I avoid the effort and fees of getting it myself. Consider a U.S. minted silver bouillon dollar as an example. This coin will incur a variety of fees in addition to ”spot” value. A coin or precious metal dealer's payment adds transaction fees, shipping fee (if applicable) and depending on the state... sales tax! The coin retains its $1 face value as U.S. currency.
By accepting precious metals at market value one may avoid selling it at a financial loss. Market volatility, whether economic or locally, sometimes encourages buyers to offer less than market value. Finding someone who will accept market value is especially helpful when selling due their own personal crisis.
The rationale to accept cryptocurrency is based on novelty and advocacy. The notion of a decentralized world currency arouses curiosity. Imagine purchasing the same fast food meal at the same franchise in two different countries using the same currency- without additional fees. One simple way to advocate the cause of cryptocurrency is to use it as a currency instead of an asset.
Aside from avoiding the inconveniences of obtaining them, precious metals and crypto currency are conceptually interesting. One is a “modern” digital currency which exists purely as an idea, unbound by a government and the other is an asset “that is worth something”. They each embody a characteristic of the currency we use in daily life. Our daily fiat currency is malleable- sometimes physical, sometimes digital and “backed” by a “promise”. However, precious metals offer a primal appeal in addition to artistic beauty... shiny.
To me, the message on American paper currency is self-explanatory. “This note is legal tender for all debts, public and private.” One is required to accept this “note” as legal tender but is one prohibited other forms of exchange? I don't think so.
During the rare occasions when these alternate currencies are used as payment, we briefly participate in ancient or futuristic forms of commerce. “Gold bugs”, “silver stackers” and “crypto miners are able use their forms of payment as intended. Why wait for an apocalypse to use these forms of payment? Additionally, these moments inject some historical or sci-fi whimsy into a typically ordinary day.
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