Bitcoin encourage spending and not hoarding - page 2.

BitFinnese

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Quote from: piloder on December 04, 2016, 12:47:24 PM

Quote from: Vaccinus on December 04, 2016, 12:09:07 PM

you see now that bitcoin has a greater value it's more easy for everyone to spend 0.03/0.05 more than one times, instead of spending a greater amount, like 0.2/0.3 few times, when btc has a low value such a $250
so i think the greater is the value of bitcoin, the more people will spend it

what you think?

How you are connecting this two things together? Roll Eyes

I don't think spending will have any connection with value of bitcoin other than the one who are holding bitcoin from really long time so they will have more in fiat, and they may tend to spend more in terms of fiat.

The connection is to encourage merchant to accept bitcoin. The more merchant accept bitcoin, the more option for users on where to spend their bitcoin. This result to mass adoption. Mass adoption is not possible if there is no merchant accepting bitcoin. So to encourage them that there is profit in bitcoin, we need to spend. Spending will serve as catalyst to speed up merchant adoption and then mass adoption will follow. This will result in incline of bitcoin price eventually.

Tmdz

hero member

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It can cause people to be more likely to spend btc than regular moneys.

For example if they used their taxed wadges to buy btc

btc increases 20%

they buy product directly with btc instead of converting to usd which would impose a capital gains tax on them.

streazight

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Quote from: Vaccinus on December 04, 2016, 12:09:07 PM

so i think the greater is the value of bitcoin, the more people will spend it

But the expectation of getting greater value will make anyone to haord. People will spend only when they need not just due to price levels. Maybe sometimes higher prices will push them to spend but how long?

Kprawn

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I would rather say, the higher the value is ... the less people will spend Bitcoin .... they would rather convert it to fiat and then spend it. The

value of Bitcoin does influence the spending habits of the people, but they actually buy less Bitcoin when the price is high. When they start

selling at high prices... the exchanges gets flooded with BTC and the price goes down again. Grin

acroman08

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Quote from: amacar2 on December 04, 2016, 01:01:59 PM

Quote from: acroman08 on December 04, 2016, 12:51:54 PM

Still, we gotta appreciate a currency wherein purchasing power is actually rising, which is the opposite with fiat.

Quote

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

http://www.investopedia.com/terms/p/purchasingpower.asp

Purchasing power of bitcoin is just like gold which tend to remain same or rise if compared with fiat. Why this?
Because both Gold and Bitcoin's supply is limited but in paper cash government can print whatever amount they like or private banks wants.

So, does this mean that the reason for purchasing power decrease of fiat is because of its virtually unlimited supply?

It's true both gold and bitcoin supply is limited,though gold's purchasing power isn't very apparent because valuation in dollars doesn't spike so much, but it is stable.
---
2011 : with $3 I could buy a gallon of milk, whereas in 2016 I'd need $4 to buy the same
2011 : with 3BTC I could buy a gallon of milk, whereas in 2016 I'd only need .0052BTC
---

I know that most hold during price increase but a good number are also spending as they like the benefits of getting more goods/services for less btc. Granted these people are mostly those who mainly uses btc as a currency, are not into speculation, or cannot afford to hold.

dothebeats

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Cashback 15%

I cannot see how would you correlate two different subject matters. It's like you comparing apples and sausages at once. Most of the time, people tend to hold longer whenever there is a price increase because they expect a higher return on their coins and tend to not spend those precious coins.

amacar2

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CryptoTalk.Org - Get Paid for every Post!

Quote from: acroman08 on December 04, 2016, 12:51:54 PM

Still, we gotta appreciate a currency wherein purchasing power is actually rising, which is the opposite with fiat.

Quote

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

http://www.investopedia.com/terms/p/purchasingpower.asp

Purchasing power of bitcoin is just like gold which tend to remain same or rise if compared with fiat. Why this?
Because both Gold and Bitcoin's supply is limited but in paper cash government can print whatever amount they like or private banks wants.

Quote from: Vaccinus on December 04, 2016, 12:09:07 PM

so i think the greater is the value of bitcoin, the more people will spend it

what you think?

Greater value simply doesn't suggest more people will start to use bitcoin or spend it, this may decrease the total bitcoin that will be cashed out in terms of fiat because when someone spend bitcoin for some services those services will just convert those bitcoin into fiat not to get affected by price volatility.

acroman08

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True, but there will always be some who'll remember the story of the guy who bought pizzas for 10,000 bitcoins. (then valued at $25). (now @$7.65m)
What if it happens to them as well?(Like instead of $765 now, it'll become $7,650 in 5-7 years time?) Grin

http://www.coindesk.com/bitcoin-pizza-day-celebrating-pizza-bought-10000-btc/

Still, we gotta appreciate a currency wherein purchasing power is actually rising, which is the opposite with fiat.

Quote

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

http://www.investopedia.com/terms/p/purchasingpower.asp

piloder

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Quote from: Vaccinus on December 04, 2016, 12:09:07 PM

you see now that bitcoin has a greater value it's more easy for everyone to spend 0.03/0.05 more than one times, instead of spending a greater amount, like 0.2/0.3 few times, when btc has a low value such a $250
so i think the greater is the value of bitcoin, the more people will spend it

what you think?

How you are connecting this two things together? Roll Eyes

I don't think spending will have any connection with value of bitcoin other than the one who are holding bitcoin from really long time so they will have more in fiat, and they may tend to spend more in terms of fiat.

Vaccinus

sr. member

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Merit: 250

you see now that bitcoin has a greater value it's more easy for everyone to spend 0.03/0.05 more than one times, instead of spending a greater amount, like 0.2/0.3 few times, when btc has a low value such a $250
so i think the greater is the value of bitcoin, the more people will spend it

what you think?

Topic: Bitcoin encourage spending and not hoarding - page 2. (Read 1434 times)