I don't want to get into an argument over semantics or whether or not "hoarding" has negative connotations, but let me just say that when you ask anyone what they do with the money they "save", they will say they invest it or put it in bank account (also "investing"), and they won't say they store it in a safe ("hoarding"). Thus in practical terms, "saving" is more "investing" than "hoarding".
I suppose you could use the word saveing for both stuffing money in the mattress and investing.
With saving I mean hoarding, ok.
When you put money in a bank account, you are really lending via a corporation of other lenders (the bank) to others, who might invest them. People think of it as saving (hoarding) because the money is readily available and guaranteed by the state.
My main point is that the hoarding problem (if it is even a problem) is due to the lack of investment opportunities. On the other hand, Bitcoin will eventually experience FRB and then there could be an inflation problem! People that predict absurd values for BTC often overlook this eventuality.
Yes, with fractional reserve banking, the bitcoin wider money supply would increase. But not like now, because there would be no one to bail out the bank, and people would be suspicious to the fact that more money is lent than deposited, and a run on the bank would be more likely.
Also, I think it is interesting to note that you can't hoard bitcoins forever (unless they are lost). Eventually, they will be spent or transferred to someone else. So, even hoarded bitcoins are part of the money supply in the long run.
I agree, there isn't really a difference between hoarding and spending when you look at the total. The coins will always be in someones wallet.
