Cult of hoarding | Bitcointalksearch.org

hellscabane

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Quote from: podyx on February 04, 2014, 01:43:28 PM

Quote from: hellscabane on February 04, 2014, 01:01:23 PM

Yes, this is one of the biggest issues. Each percentage of growth requires even more and more money to flow into the system, compound this with about 3600 new BTC coming into existence each day and the money needed for growth starts to loom large. As an example, just for prices to stay the same this month, we would need over $50M in new value to enter the system (assuming that about 1/3rd of coins are just simply off the market). Mind you though, the new value doesn't have to come in the form of fiat; it could come in other forms. But to acquire $50M each month isn't something so easy. And remember, this is just to maintain the price. Growth would require proportionally greater and greater amounts of value.

$50mil a month is nothing for bill gates and that is ONE person

there is plenty of money out there, believe me

Of course there is plenty money out there. (The US M2 Money Supply is at over $10 Trillion.) The trick is convincing people to put money into BTC over, let's say, finding treatments for cancer (since you used Bill Gates as an example). Gates definitely has no trouble donating billions of USD to charity, but I'm fairly confident that he would be significantly more hesitant putting money into BTC. Just because there is money out there doesn't mean it's going to go into the bucket that you think it could go in to.

podyx

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Quote from: hellscabane on February 04, 2014, 01:01:23 PM

Quote from: skivrmt on February 01, 2014, 10:31:34 PM

Quote from: johnyj on February 01, 2014, 08:28:03 PM

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

That is a -very- big if. Yes we've done it in the past. A couple of times over.

I hope it continues but it's certainly going to be tougher each year as more money needs to flow into Bitcoin than ever before for any price appreciation.

Yes, this is one of the biggest issues. Each percentage of growth requires even more and more money to flow into the system, compound this with about 3600 new BTC coming into existence each day and the money needed for growth starts to loom large. As an example, just for prices to stay the same this month, we would need over $50M in new value to enter the system (assuming that about 1/3rd of coins are just simply off the market). Mind you though, the new value doesn't have to come in the form of fiat; it could come in other forms. But to acquire $50M each month isn't something so easy. And remember, this is just to maintain the price. Growth would require proportionally greater and greater amounts of value.

$50mil a month is nothing for bill gates and that is ONE person

there is plenty of money out there, believe me

hellscabane

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Quote from: skivrmt on February 01, 2014, 10:31:34 PM

Quote from: johnyj on February 01, 2014, 08:28:03 PM

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

That is a -very- big if. Yes we've done it in the past. A couple of times over.

I hope it continues but it's certainly going to be tougher each year as more money needs to flow into Bitcoin than ever before for any price appreciation.

Yes, this is one of the biggest issues. Each percentage of growth requires even more and more money to flow into the system, compound this with about 3600 new BTC coming into existence each day and the money needed for growth starts to loom large. As an example, just for prices to stay the same this month, we would need over $50M in new value to enter the system (assuming that about 1/3rd of coins are just simply off the market). Mind you though, the new value doesn't have to come in the form of fiat; it could come in other forms. But to acquire $50M each month isn't something so easy. And remember, this is just to maintain the price. Growth would require proportionally greater and greater amounts of value.

nobbynobbynoob

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Whatever the price is doing, bitcoiners scream in unison: HOADR! Grin

1Pakis

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I hodling until somebody can offer me something else that worthless fiat

Timetwister

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Quote from: hilariousandco on January 30, 2014, 09:21:38 AM

Quote from: Timetwister on January 30, 2014, 09:04:07 AM

Not only we need more people accepting them as a payment method, but also more ways to invest them. If in the future it becomes easy to invest in something like a stock market, there will be less hoarding, and more capital used to increase productivity.

What do you mean by invest? I'd say it's easier to buy into Bitcoins than it is in shares.

Invest the bitcoins, not fiat in bitcoins.

Whtwabbit

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Quote from: johnyj on February 01, 2014, 08:28:03 PM

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

That would be Gresham's Law
http://en.wikipedia.org/wiki/Gresham%27s_law

pbody

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Bitcoin will stop increasing in price by tenfold a year and people will start spending it. By that point just about everyone will except bitcoin and I will have enough bitcoin to retire on. So I guess Im hodling for life.

billyjoeallen

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Hide your women

Quote from: johnyj on February 01, 2014, 08:28:03 PM

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

Obviously the price is driven by credit, but the fiat printing presses and artificially low interest rates are likely to continue until hyperinflation. Janet Yellen is Chair of the Fed and it is clear there is no political will to allow a meaningful correction. Credit markets are so screwed up that they CANNOT be normalized. It's like having a patient that is too sick to survive the life-saving surgery he needs. The point of no return occurred in 2008 with the housing market crash. Interest rates are too low to allow capital formation, so the only way to keep the ponziconomy going is to double down on stupid and take real interest rates negative. I myself have THREE zero APR credit cards. I could easily pay them off by selling my bitcoin holdings, by why? I sell enough to make the minimum payments and wait for the inevitable governmental stupidity to drive the BTC price higher. I love my country and I want it to succeed, so this is a hedge bet. If I loose, everybody wins which means I win too. I win either way.

Prolifik

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I will always hoard one of the 21 million bitcoins.

At least until the price is $1,000,000.00 a coin.

skivrmt

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Quote from: johnyj on February 01, 2014, 08:28:03 PM

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

That is a -very- big if. Yes we've done it in the past. A couple of times over.

I hope it continues but it's certainly going to be tougher each year as more money needs to flow into Bitcoin than ever before for any price appreciation.

johnyj

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Beyond Imagination

As long as bitcoin appreciate more than 50% per year, it is very natural to just take a consumer loan with 8% interest, and spend the loan instead of coins. Or even take a loan to buy coins if it goes mainstream, and that will make the hoarding more severe and price appreciation more crazy

Spending the inflative money and saving the deflative money, make perfect sense. I'm sure somebody is already doing this

Of course if the price is driven by credit money like housing, then it will become dangerous. Spending coins to buy goods/services will not affect exchange rate that much, but you always need fiat money to pay back the loan. When there is a fiat money liquidity problem, the exchange price will crash. Currently the liquidity is not a problem, but who knows when all the fiat money has been drained by bitcoins

Sonny

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Quote from: hilariousandco on January 31, 2014, 11:36:37 AM

Quote from: miketonic on January 31, 2014, 09:38:31 AM

Quote from: BitDreams on January 30, 2014, 08:22:46 PM

I am also Hoadring. Hoardring will make many savers around the world.

One day we will look around and where we see a debtor today, we will instead see a saver tomorrow. Many people with assets instead of slaves with undeserved burdens.

Every hoadrer has a price and eventually they spedn their Bitcoins. The point of the game is to eventually disperse your coins before they become lost to the blockchain.

I agree on this. Even if the price keeps climbing, people will spend their coins in some minor downturn in fear of coins losing all their value.

I'm hodling and I don't have a price. I just want more mainstream adoption and be able to spend them on things I actually want.

Hodl forever? lol
When you decide to spend bitcoin instead of fiat, it is like you sell the bitcoin Tongue

hilariousandco

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Quote from: miketonic on January 31, 2014, 09:38:31 AM

Quote from: BitDreams on January 30, 2014, 08:22:46 PM

I am also Hoadring. Hoardring will make many savers around the world.

One day we will look around and where we see a debtor today, we will instead see a saver tomorrow. Many people with assets instead of slaves with undeserved burdens.

Every hoadrer has a price and eventually they spedn their Bitcoins. The point of the game is to eventually disperse your coins before they become lost to the blockchain.

I agree on this. Even if the price keeps climbing, people will spend their coins in some minor downturn in fear of coins losing all their value.

I'm hodling and I don't have a price. I just want more mainstream adoption and be able to spend them on things I actually want.

toomsie

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Better computers came out every year. It doesn't mean people put of buying computer indefinately

miketonic

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Quote from: BitDreams on January 30, 2014, 08:22:46 PM

I am also Hoadring. Hoardring will make many savers around the world.

One day we will look around and where we see a debtor today, we will instead see a saver tomorrow. Many people with assets instead of slaves with undeserved burdens.

Every hoadrer has a price and eventually they spedn their Bitcoins. The point of the game is to eventually disperse your coins before they become lost to the blockchain.

I agree on this. Even if the price keeps climbing, people will spend their coins in some minor downturn in fear of coins losing all their value.

hilariousandco

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Quote from: bitgeek on January 30, 2014, 09:14:08 PM

Quote from: guybrushthreepwood on January 29, 2014, 03:00:09 PM

IF you want to save and spend you can always buy Bitcoins especially to purchase something. that way you can do your bit to promote the currency of the coin whilst still saving.

Yeah, I would spend some but there's so little acceptance now, that it's just better to hold (or hodl).

Well if you want to buy something from a store that accepts Bitcoin, go out of your way to buy it in Bitcoin and promote the use of the currency. It's on all our interests to do so.

Anon136

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Quote from: empoweoqwj on January 31, 2014, 01:55:55 AM

Quote from: keithers on January 31, 2014, 12:48:04 AM

Whoreding

That's a new word (to me). Care to elaborate? Wink

Yea whores don't hoard, thats sort of like part of what it means to be a whore.

empoweoqwj

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Quote from: keithers on January 31, 2014, 12:48:04 AM

Whoreding

That's a new word (to me). Care to elaborate? Wink

keithers

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Whoreding

bitgeek

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Quote from: guybrushthreepwood on January 29, 2014, 03:00:09 PM

IF you want to save and spend you can always buy Bitcoins especially to purchase something. that way you can do your bit to promote the currency of the coin whilst still saving.

Yeah, I would spend some but there's so little acceptance now, that it's just better to hold (or hodl).

Erdogan

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Quote from: hilariousandco on January 30, 2014, 09:21:38 AM

Quote from: Timetwister on January 30, 2014, 09:04:07 AM

Not only we need more people accepting them as a payment method, but also more ways to invest them. If in the future it becomes easy to invest in something like a stock market, there will be less hoarding, and more capital used to increase productivity.

What do you mean by invest? I'd say it's easier to buy into Bitcoins than it is in shares.

Holding money is just saving. It pays no interest, but you have something for a rainy day. Holding bitcoins in the implementation phase is a special, one time opportunity for profit. You could call it investing because of that, with a stretch.

Investing is buying capital goods with the intent of producing something for money, directly or via a common stock company.

A middle ground is lending. For that you will need to have someting back for the risk, and some compensation for not being able to invest directly (or consume now). Insurance and interest.

Those are the three things you can do with your savings.

If you are an entrepreneur, but have no money, you can loan some. If you have a good project, money is always available.

BitDreams

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I am also Hoadring. Hoardring will make many savers around the world.

One day we will look around and where we see a debtor today, we will instead see a saver tomorrow. Many people with assets instead of slaves with undeserved burdens.

Every hoadrer has a price and eventually they spedn their Bitcoins. The point of the game is to eventually disperse your coins before they become lost to the blockchain.

jubalix

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Quote from: Anon136 on January 30, 2014, 12:26:07 AM

its pronounced "hodling" not "hording"

it could be hoadring

hilariousandco

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Quote from: Timetwister on January 30, 2014, 09:04:07 AM

Not only we need more people accepting them as a payment method, but also more ways to invest them. If in the future it becomes easy to invest in something like a stock market, there will be less hoarding, and more capital used to increase productivity.

What do you mean by invest? I'd say it's easier to buy into Bitcoins than it is in shares.

Timetwister

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Not only we need more people accepting them as a payment method, but also more ways to invest them. If in the future it becomes easy to invest in something like a stock market, there will be less hoarding, and more capital used to increase productivity.

Anon136

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its pronounced "hodling" not "hoarding"

empoweoqwj

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Quote from: yatsey87 on January 29, 2014, 11:05:00 AM

Quote from: seafarer124 on January 29, 2014, 11:00:42 AM

No different to people using fiat.

Some spend every cent they earn every week, others save for a rainy day, holiday, education, retirement etc.

Just because you have funds does not mean you have to spend it all immediately.

Tell that to my girlfriend lol.

lol. Best not to tell her of all the funds then

guybrushthreepwood

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IF you want to save and spend you can always buy Bitcoins especially to purchase something. that way you can do your bit to promote the currency of the coin whilst still saving.

nobbynobbynoob

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I "hoard" and spend bitcoin. I have two stashes, and the spending stash is not trivially small either. Grin

I was actually spending bitcoin on services that accepted it (VPN etc.) when the bitcoin-to-fiat valuation was but a fraction of what it is today, and don't feel silly about that either. Similarly, Laszlo doesn't regret buying those pizzas: he did admit they tasted good! Grin

the_poet

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Bitcoin accepted here

Hoarders will turn into spenders when Bitcoin use is common enough that at least 0.x% of all businesses accept it. You can't be a spender when virtually no one accepts it in everyday life.

yatsey87

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Quote from: seafarer124 on January 29, 2014, 11:00:42 AM

No different to people using fiat.

Some spend every cent they earn every week, others save for a rainy day, holiday, education, retirement etc.

Just because you have funds does not mean you have to spend it all immediately.

Tell that to my girlfriend lol.

seafarer124

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No different to people using fiat.

Some spend every cent they earn every week, others save for a rainy day, holiday, education, retirement etc.

Just because you have funds does not mean you have to spend it all immediately.

guybrushthreepwood

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Quote from: hilariousandco on January 29, 2014, 10:35:50 AM

Quote from: empoweoqwj on January 29, 2014, 10:23:55 AM

Quote from: guybrushthreepwood on January 29, 2014, 10:18:19 AM

Quote from: wobber on January 27, 2014, 08:47:55 PM

I'm assuming that newcomers that get involved into bitcoin, eventually will integrate into their beliefs some (more or less) of the community's cultsm, including hoarding.

So, even if a newcomer buys bitcoins, we could assume he hoars at least 10% for the very long term (+20 years, for nephews or for when they're old). The rest of it can be actively traded, gambled, etc. But some will almost for sure be hoarded, because most bitcoin users are young and can risk 800 bucks for a "my precious" coin.

Why are you assuming people will hoard? Some people will buy coins as an investment and some will buy to use. Bitcoin is a currency and you are free to save or spend. You can do both or either.

People will naturally hoard if the price keeps on increasing 100x a year. We all know that can't happen forever. So hoarders will turn into spenders. Its happening as we speak.

Yeah, this is the situation I'm in. I believe in the currency so I'm currently treating it as an investment opportunity. I'm hoarding so l can spend it on things I want in the future.

I think it's only logical if you believe in the currency the more and more mainstream adoption it gets the more valuable it will become so it's wise to hold on to it now.

hilariousandco

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Quote from: empoweoqwj on January 29, 2014, 10:23:55 AM

Quote from: guybrushthreepwood on January 29, 2014, 10:18:19 AM

Quote from: wobber on January 27, 2014, 08:47:55 PM

I'm assuming that newcomers that get involved into bitcoin, eventually will integrate into their beliefs some (more or less) of the community's cultsm, including hoarding.

So, even if a newcomer buys bitcoins, we could assume he hoars at least 10% for the very long term (+20 years, for nephews or for when they're old). The rest of it can be actively traded, gambled, etc. But some will almost for sure be hoarded, because most bitcoin users are young and can risk 800 bucks for a "my precious" coin.

Why are you assuming people will hoard? Some people will buy coins as an investment and some will buy to use. Bitcoin is a currency and you are free to save or spend. You can do both or either.

People will naturally hoard if the price keeps on increasing 100x a year. We all know that can't happen forever. So hoarders will turn into spenders. Its happening as we speak.

Yeah, this is the situation I'm in. I believe in the currency so I'm currently treating it as an investment opportunity. I'm hoarding so l can spend it on things I want in the future.

empoweoqwj

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Quote from: guybrushthreepwood on January 29, 2014, 10:18:19 AM

Quote from: wobber on January 27, 2014, 08:47:55 PM

I'm assuming that newcomers that get involved into bitcoin, eventually will integrate into their beliefs some (more or less) of the community's cultsm, including hoarding.

So, even if a newcomer buys bitcoins, we could assume he hoars at least 10% for the very long term (+20 years, for nephews or for when they're old). The rest of it can be actively traded, gambled, etc. But some will almost for sure be hoarded, because most bitcoin users are young and can risk 800 bucks for a "my precious" coin.

Why are you assuming people will hoard? Some people will buy coins as an investment and some will buy to use. Bitcoin is a currency and you are free to save or spend. You can do both or either.

People will naturally hoard if the price keeps on increasing 100x a year. We all know that can't happen forever. So hoarders will turn into spenders. Its happening as we speak.

guybrushthreepwood

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Quote from: wobber on January 27, 2014, 08:47:55 PM

I'm assuming that newcomers that get involved into bitcoin, eventually will integrate into their beliefs some (more or less) of the community's cultsm, including hoarding.

So, even if a newcomer buys bitcoins, we could assume he hoars at least 10% for the very long term (+20 years, for nephews or for when they're old). The rest of it can be actively traded, gambled, etc. But some will almost for sure be hoarded, because most bitcoin users are young and can risk 800 bucks for a "my precious" coin.

Why are you assuming people will hoard? Some people will buy coins as an investment and some will buy to use. Bitcoin is a currency and you are free to save or spend. You can do both or either.

billyjoeallen

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Quote from: empoweoqwj on January 27, 2014, 11:01:04 PM

Quote from: Bill Bisco on January 27, 2014, 11:00:00 PM

Bitcoin is a deflationary currency. It encourages savings and thrift. This is a good thing.

Its a balancing act. If nobody spends, its not a currency. It's a dead duck.

There is a natural equilibrium. The greater the value, the more incentive there is to spend, lock in profits, hedge. I started spending my coins when the price reached 100X my original buy in. Now I sell ~4% for every 10% rise in price after a new All Time High.

If price drops far enough, they start to look cheap and I buy them back. I buy back 75% of what I sold after every 15% drop in price. The effect is that the dollar value of my stack increases over time even though the number of coins I own eventually slowly goes down. and I make thousands of dollars per year doing this. I will eventually make tens or hundreds of thousands of dollars/year doing this. Unless it all goes to shit in which case I have a good story to tell.

empoweoqwj

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Quote from: wobber on January 28, 2014, 06:57:19 PM

Quote from: Dalmar on January 28, 2014, 06:52:08 PM

That is why we have such epic crashes all the damn time when new highs are hit.

Hoarders or hodlers who at first were greedy and euphoric will see their precious plummet in price and start selling en masse. It happened so many times that you could say it is a law of nature in the bitcoin economy.

Unfortunately bitcoin is concentrated in just a few hands... So the panic sell only does worse

What panic sell is that?

Mikcik

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"hoarding" is called investment, and belive it or not, thats the main reason majority of the people are in bitcoin, maybe not majority here on forums, but certainly a majority of holders, get used to it. Nobody really cares about some "ideals" or "revolution" or i dont know what "crap", its all about the money, and doesnt matter if its USD, EUR or BTC :-P.

skivrmt

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Quote from: wobber on January 28, 2014, 06:57:19 PM

Quote from: Dalmar on January 28, 2014, 06:52:08 PM

That is why we have such epic crashes all the damn time when new highs are hit.

Hoarders or hodlers who at first were greedy and euphoric will see their precious plummet in price and start selling en masse. It happened so many times that you could say it is a law of nature in the bitcoin economy.

Unfortunately bitcoin is concentrated in just a few hands... So the panic sell only does worse

Define a few though? There's been a lot studies and research done on the top 47 holders of Bitcoin. After guessing than Satoshi owns ~1MM (which who really knows), the next 46 drop off fairly significantly. Yes, I agree if most of then panic dump the market would crash. But I think we have enough of a support base right now to recover fairly quickly.

wobber

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Quote from: Dalmar on January 28, 2014, 06:52:08 PM

That is why we have such epic crashes all the damn time when new highs are hit.

Hoarders or hodlers who at first were greedy and euphoric will see their precious plummet in price and start selling en masse. It happened so many times that you could say it is a law of nature in the bitcoin economy.

Unfortunately bitcoin is concentrated in just a few hands... So the panic sell only does worse

Dalmar

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Life is short, practice empathy in your life

That is why we have such epic crashes all the damn time when new highs are hit.

Hoarders or hodlers who at first were greedy and euphoric will see their precious plummet in price and start selling en masse. It happened so many times that you could say it is a law of nature in the bitcoin economy.

GratisBitcoin

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Hoarded

Quote from: nobbynobbynoob on January 27, 2014, 08:57:40 PM

"Hoarded" 'coins are simply off the market. The remaining ones divide into 100 million itty bitty pieces, enough to run any economy on, and after all, the earlier-adopting "whales" can only dump once.

Hoarded coins can be concidered off the market. But what about lost coins? Coins that were on crashed hard drives for instance? Those will never be back in the market... Or coins mined in 2010 that were on computers that have been trashed and destroyed before BTC became worth something?

Tzupy

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What I find most annoying about HODLers posting in these forums is that they make bitcoin look like a Ponzi,
and it's not a Ponzi, just a bubble. Fortunately, during the bear market, HODLers will decrease their posting rate.

nobbynobbynoob

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Quote from: Erdogan on January 27, 2014, 09:59:12 PM

The hoarded coins will be available some day, and the market knows it.

Maybe so but that still doesn't change the fact that there will always be less than 21 billion mBTC out there. Whether the market is pricing already based on an assumed supply of 21 billion, 12 billion or whatever, is anyone's guess.

BitChick

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Quote from: keithers on January 27, 2014, 11:42:27 PM

Yeah for long term growth we need a good percentage of people holding, and a good amount of people spending. We just don't need 100% doing one or the other at the same time.

People have had no problem spending on Tiger Direct and Overstock. As long as more places start taking BTC this won't be an issue.

keithers

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This is the land of wolves now & you're not a wolf

Yeah for long term growth we need a good percentage of people holding, and a good amount of people spending. We just don't need 100% doing one or the other at the same time.

empoweoqwj

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Quote from: Bill Bisco on January 27, 2014, 11:00:00 PM

Bitcoin is a deflationary currency. It encourages savings and thrift. This is a good thing.

Its a balancing act. If nobody spends, its not a currency. It's a dead duck.

Bill Bisco

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Bitcoin is a deflationary currency. It encourages savings and thrift. This is a good thing.

BitChick

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Many people have regretted not holding. We can learn from their mistakes. Grin

byronbb

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HODL OR DIE

Quote from: Erdogan on January 27, 2014, 09:59:12 PM

The hoarded coins will be available some day, and the market knows it.

Why would anyone buy coins and store them forever? There is no sense in that. You would be better off not buying them at all.

Until I can use my coins for something I want, I will hold them.

Erdogan

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The hoarded coins will be available some day, and the market knows it.

Why would anyone buy coins and store them forever? There is no sense in that. You would be better off not buying them at all.

empoweoqwj

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The amount of purchases in BTC at overstock.com and tigerdirect.com by bitcoiners suggests bitcoiners are not as hoardy as we might have suspected.

nobbynobbynoob

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Annuit cœptis humanae libertas

"Hoarded" 'coins are simply off the market. The remaining ones divide into 100 million itty bitty pieces, enough to run any economy on, and after all, the earlier-adopting "whales" can only dump once.

wobber

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I'm assuming that newcomers that get involved into bitcoin, eventually will integrate into their beliefs some (more or less) of the community's cultsm, including hoarding.

So, even if a newcomer buys bitcoins, we could assume he hoars at least 10% for the very long term (+20 years, for nephews or for when they're old). The rest of it can be actively traded, gambled, etc. But some will almost for sure be hoarded, because most bitcoin users are young and can risk 800 bucks for a "my precious" coin.

This is a very important aspect as more and more users get into bitcoin, making less and less coins available. I expect that as price get's higher, hoarding is expressed in more decimal points and by less users.

Topic: Cult of hoarding (Read 4253 times)