Topic: Forgive my ignorance, but shouldn't hoarding = decreasing value of BTC? - page 2. (Read 4119 times)
June 06, 2011, 06:23:20 PM
saving is not different from hoarding, it is the same activity. it is not "bad" or "good" but an abundance of it compared to trading makes a difference in how an economy is functioning.
June 06, 2011, 06:21:00 PM
Yes tootdr, you are correct. Hoarding is the worst possible thing people can do for Bitcoin. It reduces the entry to the market, which may show a short term increase in value, follow by reduced interest and with it falling Bitcoin value.
Is saving good? How is saving different from hoarding?
June 06, 2011, 06:17:13 PM
the thinking is that you are right and that the anti-hoarding feedback loop will kick into place (hoarding=less economic activity=lower value of btc=less incentive to hoard). However, in the mean time it will likely be really whiplash-y as BTCs seek their stable value point. i agree it will be a rough road to get to stability because the speculative boom/bust cycles in the short term will discourage vendors, especially vendors who do not care about BTC as a project but are happy to provide another payment option to customers
June 06, 2011, 06:13:16 PM
Yes tootdr, you are correct. Hoarding is the worst possible thing people can do for Bitcoin. It reduces the entry to the market, which may show a short term increase in value, follow by reduced interest and with it falling Bitcoin value.
June 06, 2011, 05:56:37 PM
During hyperinflations sound money is first hoarded until it reaches sufficient volume and holders to displace the unsound money. This process will eventually happen to all fiat currencies. There are very few coins and very many dollars. It may be some time before it is sufficiently hoarded to displace current economic activity. Quite serendipitous as I'm not sure even Satoshi saw this as occurring.
June 06, 2011, 05:47:34 PM
It's pushing me. I want to stick around but there's no circulation. I have a nice product. I have plans to reinvest BTC into a bitcoin themed die. I have no shortage of inquiries about it. I know that demand is there but Gresham's Law keeps people paying me in USD.
Go figure.
Go figure.
June 06, 2011, 05:38:49 PM
i have read a few threads on btc, i admit im still very new into this, but i read that people are hoarding the btc because of speculation that the price will skyrocket to "$1000" or something, but if everyone is saving up and buying btc as soon as it comes out and not spending it, which was what it was originally used for, then doesn't that discourage sellers to accept btc? i dont know im just basing this on Keynesian economics as i read that these btc functions like a real economy, i know i sound really new into but i would really appreciate it if someone can clarify this with me without "too" much economic jargon 
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