Hey guys,
In order to benefit, will I have to cash out bitcoin when it gets high? That would mean i would have to sell it for dollar or other currency.
When i am buying online with coin, if it says the shirt is for $25, will they calculate how much $25 is worth in BTC at the current market rate or
how much it originally started with? If its at the current market rate, then whats the point of bitcoin if i am not profitting?
Yes, you will need to cash out Bitcoin to make profit out of it. That means to sell Bitcoin for fiat.
As for your question about the $25 shirt, the calculation will be based on $25 worth of BTC at the current market rate. You are still profiting if you bought your Bitcoin at a lower rate than current market rate. Take this as an example, if you buy BTC at $1000 and current BTC market rate is $7000 when you want to buy the shirt.
$25 worth of BTC when you buy at $1000: BTC 0.025
$25 worth of BTC at $7000 (Buying shirt timing): 0.00357143
Hence you spend BTC 0.00357143 for the $25 shirt and have balance of BTC 0.02142857