People often talk about exchanging BTC for cash or cashing out. It comes from both folks who are new to Bitcoin and folks who’ve been around for awhile. “Cashing out” implies that currencies like USD are the end game. What they really mean is exchanging BTC for a local currency like USD.
Today in 2021 nearly all purchases in the US are priced in dollars and it’s necessary to exchange BTC to USD to spend it unless the merchant takes BTC. However, BTC is no less a currency than the Euro or Yen, which also need to be converted into USD unless the merchant takes EUR/JPY.
Instead of “selling BTC for cash,” think “exchanging BTC for USD/your local currency.”
*Most countries don’t recognize BTC as a currency/cash so whether one thinks of BTC as cash, exchanging it still creates capital gains and losses.
Closing thought - Bitcoin is soon legal tender in El Salvador and if it’s successful over time, Salvadorans one day might find themselves saying, “cash out to BTC.”
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