The hoarding problem - page 5. | Bitcointalksearch.org

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: twolifeinexile on January 15, 2013, 12:32:10 PM

. . . (Not saying I agree with this viewpoint, but I think there is merits and people should think about this)

People have though about it. It has been discussed many times here.

There are people who are concerned that a deflationary currency cannot survive due to the incentive for hoarding. Those people choose to either not use bitcoin at all or to attempt to time the market and jump out just before it crashes.

There are others who believe that there will always be a need to spend bitcoins, and as such hoarding will not present a problem. Those people continue to use bitcoin as a currency comfortable in their belief that it will endure.

Only time will tell us who is right. It will be fun to watch and see, yes?

alexeft

legendary

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If the economy around bitcoin goes up, bitcoin is going to go up because it's supply will not grow accordingly.
It's the basic law of supply and demand.

twolifeinexile

full member

Activity: 154

Merit: 100

The total possible bitcoins is only 21M, and now half of that is out in people's hands. It is limited in supply, I think for most people bitcoin is also not their major assets, so they do not have to worry to liquidate them to get back resources they need.

All these factors make it so easy to be hoarded and price go up and up and up, but actually normally economy forms around it.

In real life, people will still use fiat, bitcoin become a collectable that is in the process of forever wasting resources (blockchain hashing), doing nothing. (price may still go up and up)

What if this is the end result?

(Not saying I agree with this viewpoint, but I think there is merits and people should think about this)

Topic: The hoarding problem - page 5. (Read 3700 times)