hanging on to them. Either they are gonna be worth a ton or nothing one day
Good idea, but, the value increases by the amount being used. If every one held on to their bitcoins they'd become worthless.
K.
This has made me wonder about the problem of people who die with a considerable bitcoin balance? Since no one else knows their passwords for their wallet, are these bitcoins just as dead as their old owner?
Yes. This increases deflation of the currency, but it shouldn't be an issue since Bitcoins are easily divisible. In the scenerio that too many coins are lost, μBTC might be used.
Anyways, if you have a lot of BTC, make sure your family knows how to access and secure the funds if you should die suddenly.
I guess this would be no different than if someone died with huge stacks of cash buried in his backyard. Since that person was hording and not spending, it really has no impact on the economy.
nets a tidy profit 
