Is limited supply of bitcoin a hinderence?

avw1982

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Quote from: tiggytomb on April 21, 2016, 12:23:43 PM

I don't think it is a problem at all, and it will never get to a point when nobody will be able to buy more bitcoin, over the years it may be more expensive to buy bitcoin but it will always be available unless of course every single user holds and never sells.

I think limited supply will occur in after halving only, mining will get reduce So supply and demand also will get increase rapidly. People will would have think about that and lots of altcoins in the market this is also one of the reason for that...

Boosterious

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Quote from: Wapinter on March 20, 2016, 06:05:08 PM

we know that only 21 million Bitcoins can be produced and this make most people to think that they might not be able to get bitcoin again if they spend them heavily.
This thought leads to storing bitcoin rather than spending them.IMO this is a great hindrance in bitcoin becoming mainstream.Your thoughts?

Not to be worry about this,if 21 milion bitcoins has end up,its might there only bitcoin core,this bitcoin just trnsacted between wallet to wallet,no more people mine bitcoin,and bitcoin will be rare,its good news for price,its will expensive.

tiggytomb

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I don't think it is a problem at all, and it will never get to a point when nobody will be able to buy more bitcoin, over the years it may be more expensive to buy bitcoin but it will always be available unless of course every single user holds and never sells.

Im better than Varoufakis

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Yes, its a problem because the investments can be done only by the owners of the bitcoins.

NyeFe

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Good thread. Mixed with some ignorance.

Yes there are only 21 million Bitcoins available.
But there are also 2.1 trillion satoshis available (which is about 262.5k satoshi per/person — if the population is 8billion)

The price of 1btc/satoshi is based on supply and demand.
So, the more demand, and the less supply, the more it's price/value increase (unlike fiat which can be printed).

In any case, if the demand does increase, we could see the value of 0.00000300 = 1.00000000, this is one of the reasons people use Bitcoin — No quantitative easing.

Wapinter

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Quote from: Devesh on April 21, 2016, 02:40:05 AM

Nope its not a hindrance, if many people holding their coins, and the price always go up, we can add another zero at the end in my own opinion.

What do you mean by adding another zero.Hoarding will make bitcoin availability scarce.This will push up the price hence bitcoin would be beyond reach of many common people

Odien

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That's what makes Bitcoin valuable. People think that they will lose the opportunity of their life if they don't buy now because of the orchastrated hype about the halving. It tends to make people buy more, and make us richer Grin

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ElpadroBitcoin

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If Bitcoin is limited it can be a hinderence. Bitcoin wants more people to make use of Bitcoins so of they accomplish that and these people want to invest and they cannot buy anything Bitcoin is going to come over as a joke.

Devesh

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Nope its not a hindrance, if many people holding their coins, and the price always go up, we can add another zero at the end in my own opinion.

Kakmakr

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The thing is, people will hoard Bitcoin because of the hype going around about the coming Halving and the possibility that the price would increase significantly. If this happens, a lot of people will start flooding the exchanges with coins, until the price goes down again and they will stop selling.

There will always be some barrier for people, and some reason for them to sell and this will feed the supply for others who are waiting to buy. ^smile^

Bemerand

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In the future, if the bitcoin is to represent all the wealth of the Earth, its price will just rise 2% a year, to keep with the economy growth. So not many people will hoard it.

odolvlobo

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Quote from: Wapinter on March 21, 2016, 05:21:42 AM

Quote from: odolvlobo on March 20, 2016, 07:56:36 PM

I don't know why someone would think that they can't get more bitcoins. You can buy them off an exchange whenever you want.

Because they believe bitcoin price will go beyond their purchasing power in future.Even at current price, many people can't afford to buy a whole bitcoin

Then people need to be educated. It doesn't matter if you can buy a whole bitcoin or not. If you want to buy $10 worth of bitcoins, you can buy $10 worth of bitcoins.

Quote from: Wapinter on March 21, 2016, 05:21:42 AM

Quote from: Amph on March 21, 2016, 03:42:28 AM

people are to stubborn thinking in fiat terms, you don't need more coin, you need more value per coin, stop comparing it to fiat trash where they keep printing endless because the value keep dropping

bitcoin work as opposite of this, you need an increase in demand(this is the primarily problem) that will exponentially increase the value of each coin, so you need less and not more

That's what I meant to say.Everyone believe that value of their coin will exponentially increase in future so they want to save it till that happens.

Just being an exponential increase is not a sufficient reason to horde. An exponential increase of 1% per year over 50 years is only 64% (compared to 50%).

Fears of widespread hording due to deflation are overblown. The average depreciation rate of the U.S. dollar over the last 100 years has been 3.22% (exponential, by the way), and we don't see widespread dumping of dollars. So, if Bitcoin's appreciation rate is 3.22%, we shouldn't expect widespread hording of bitcoins.

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Quote from: odolvlobo on March 20, 2016, 07:56:36 PM

I don't know why someone would think that they can't get more bitcoins. You can buy them off an exchange whenever you want.

Because they believe bitcoin price will go beyond their purchasing power in future.Even at current price, many people can't afford to buy a whole bitcoin

Quote from: Amph on March 21, 2016, 03:42:28 AM

people are to stubborn thinking in fiat terms, you don't need more coin, you need more value per coin, stop comparing it to fiat trash where they keep printing endless because the value keep dropping

bitcoin work as opposite of this, you need an increase in demand(this is the primarily problem) that will exponentially increase the value of each coin, so you need less and not more

That's what I meant to say.Everyone believe that value of their coin will exponentially increase in future so they want to save it till that happens.

Elyes Zebda

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Yes. Because the public are dumb and don't understand divisibility.

Amph

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people are to stubborn thinking in fiat terms, you don't need more coin, you need more value per coin, stop comparing it to fiat trash where they keep printing endless because the value keep dropping

bitcoin work as opposite of this, you need an increase in demand(this is the primarily problem) that will exponentially increase the value of each coin, so you need less and not more

NorrisK

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Imo it is not a problem as long as you keep building on your bitcoin stack. E.g. try to provide a monthly btc income for yourself as well so you will never lose all your coins if you spend some regularly (ofcourse buy more coins depending on how much you use bitcoin compared to fiat).

Regarding the zeros, this can easily be overcome by introducing new names for stuff, such as mBTC and uBTC. As those get more integarted, you can then start buying stuff for 1 mBTC or 150 uBTC for instance. Also, for the near future, the USD price will always be displayed next to the bitcoin price, making it pretty much ok for most people to see what is what.

SFR10

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Mainly those who store BTCitcoin at the moment, are doing it due to the upcoming halving and not due to the supply staying at 21 Million once reached. I don't think this will be a block or complication for BTCitcoin becoming mainstream at all. Everything is going to be working just as how it works now. If it's going to be mainstream, it will happen eventually, regardless of people holding some.

4by2

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Quote from: Zeke2345 on March 21, 2016, 01:22:39 AM

Only issue is more zeros after the decimal as it either becomes expensive or spread thinner. Guess the latter would also stimulate increase in price.

If you need to buy a magazine for .00000234 it could become a issue of the people adding or subtracting a zero to rip off or by mistake.
Recall preauthorizing credit cards so people could rent game consules at blockbuster back in the day.
Once locked a lady up for 1k instead of the normal 100. The zeros will be a hinder, hopefully we create a workaround for that if the time comes.

I think it would be easier for people to just have 10^-(x) satoshi or whatever payment form, that way it would be harder to miss a zero or add one and everyone can get their payments performed smoothly.

Zeke2345

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Only issue is more zeros after the decimal as it either becomes expensive or spread thinner. Guess the latter would also stimulate increase in price.

If you need to buy a magazine for .00000234 it could become a issue of the people adding or subtracting a zero to rip off or by mistake.
Recall preauthorizing credit cards so people could rent game consules at blockbuster back in the day.
Once locked a lady up for 1k instead of the normal 100. The zeros will be a hinder, hopefully we create a workaround for that if the time comes.

4by2

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Quote from: MingLee on March 21, 2016, 01:00:59 AM

No way that the capacity limit is a hindrance to Bitcoin, if you want to see what happens to other high-cap or infinitely-capped cryptos, go look at the multitude of failed cryptos that would retain next to no value. This is why the 21m cap is a benefit.

I believe you're specifically referring to something like Dogecoin, right?

Well, you can look at the price of it now. It's like $0.25 per 1,000 Dogecoin at this point. Has it been going lower?

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