What should we focus on more? Demand or Supply? - page 8.

jaysabi

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

There are far too many bitcoins still being produced for any type of hoarding to constrain supply in any meaningful or measurable way. And you can't artificially create demand for bitcoin. The hype drove the insane demand we saw at the end of 2017 which in turn pushed the price up to the insane levels we saw around $19,000. That was a natural occurrence of the hype driving the awareness and causing people to FOMO into crypto. That's not sustainable, so even if you could replicate that (which I don't believe is possible), it wouldn't do anything but create bubbles. The bubble bursting is why the price is currently languishing. Everybody remembers the hype and that those prices couldn't be trusted to last, so who would want to be buying now without any trust that the price will hold? There's very little spending of bitcoins going on. People are speculating to get rich in USD. There's actually very little comparative interest in crypto as a usable currency.

tepakpak

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Obviously, demand is very active in the market because it is the key to running a product. just like crypto, demand will increase the price value, the strategy of using it as a payment instrument is a good thing.

wantjokull

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Off course, for any asset when there is huge demand despite of the supply you can say that it will always grow in its value and thus may get itself to higher levels. In crypto currency demand and supply surely plays vital role in deciding the prices. Though the speculators say that the prices will rise over the time as supply will keep decreasing then also I believe it will take huge time. Because the use is not even that much higher currently as it should have been. The use when will increase in the future then supply will also go limited as well as demand will also rise, so it would be multi fold changes.

Kprawn

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It is easier said than done, because a lot of people would be very reluctant to spend any bitcoins when the price is very low.

Since 2017 a lot of speculators have started to invest in Bitcoin and their sole purpose is to maximize their profits. They could

care less about merchant adoption and even considering spending some of their coins. We should focus more on a 50/50

percentage split in our efforts to grow demand and also to limit the supply. Now, I am not saying spending 50% of your

coins, but rather focussing more on spreading Bitcoin awareness. Grin

bintangkejoraku

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

bitcoin needs more people like that, most people panic when prices drop slightly. for fear of falling prices they end up selling their bitcoin, but that only worsens the situation.

glorybtc

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

I agree with you, I think if the use of bitcoin as a means of payment is expanding, the number of circulation of bitcoin will increase so that the value of bitcoin will also increase

Betwrong

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price.

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them.

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

I agree with the 80%/20% only I can't find much places where BTC is accepted among the services I want. It's a pity that as early as in 2016 Netflix CFO David Wells was talking about the possibility for Netflix to accept Bitcoin payments and yet they still don't accept BTC. It's easier to do if you live in Switzerland where you pay your utility bills and pay for other government services with Bitcoin in some cantons. Let's hope all countries will become Switzerland in that regard somewhere in the future.

Ilegendph

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Quote from: MilkyMilton on August 30, 2018, 04:34:15 AM

I've been a student of Economics for some time now. Not in an academic setting by the way. But I have undertaken studies of Economics individually. In this time, I have never seen a case where hoarding any product has worked for good. It always end up more like a lose-lose situation. And this is a strategy only amateurs engage. I totally agree with the poster. The only way to improve Bitcoin prices is to create awareness to induce the public's interest. In other words, only increased demand ever benefits a particular market.

Well of course, it is because of the regulating bodies that prevents hoarding the primary needs of people like food. Long way back, when government is not aware of this kind of scheme. The rich takes the advantage when there is a shortage in food, they buy food at low prices then hoard it, of course the effect would make the price of the at the market to be higher. Because of this scheme, poor becomes poorer and the rich becomes richer. Thanks to the government and the regulating agency, we would not experience this kind of inhumane thing.

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In the case or world of cryptocurrency, demand is the thing that should be given by attention. This is because when we talk about supply, it is about the coins currently in the market. There's a lot of coins that can be seen. But the problem is that there's a little demand over those coin. Thus, this would further prove that what we should focus now is with the demand of everyone to the coin s rather than the supply of the coins itself that can be found in the market.

Wenmanong

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People must be aware how the market goes I think we have to focus in both, we have to know how manage between the supply and demand.

Eijrafarm

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Both of this must be put in focus. This is the basic fundamental the all people must be aware of since it is a direct contract with any forms of sales where in we must consider both of this two to establish a good market.

zhanyiguai261315

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The price of cryptocurrency is also determined by the relationship between supply and demand.
In the case of a small amount of liquidity, if good news is good, it will lead to an increase in demand, which will quickly push up the price of the currency. If there is a large amount of liquidity, even if the demand is large, the price increase of the currency is limited.

jseverson

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Quote from: bob123 on August 30, 2018, 04:54:58 AM

Quote from: jseverson on August 30, 2018, 04:01:17 AM

Maybe it would be more effective if we encouraged businesses to accept Bitcoin rather than encouraging end users to spend them lol.

Well, IMO encouraged users who want to actively use and spend bitcoins at a store, can have an influence on the owner of the store to accept BTC (to encourage businesses).
But encouraged businesses which accept BTC don't have such a big influence on their customer to pay with BTC. Most of them would probably stick with their credit card (regardless of a "BTC Accepted Here" - sticker).

A user base (and new user who want to actively use BTC as a currency) are thriving the adoption forwards. Not businesses accepting it as a payment option per se.

Yeah, but then it becomes a chicken-and-egg scenario when you consider that regular BTC users themselves won't bother paying with Bitcoin if they're not getting anything out of it. They're HODLing because there's financial incentive for them to do so, and spending doesn't even net them a discount. We could easily say that they'd be willing to spend because of ideological reasons, but we all know a big subset of the community is only here for the money.

Businesses, on the other hand, have the immediate incentive of higher profits (1% transaction fee vs 2%~5%), and they get to attract a new demographic to boot. More businesses that accept Bitcoin = more opportunities for Bitcoin to be spent. It might be easier for us, the consumers, to nudge them towards that direction.

Then again, if this problem were as simple as our discussion, more people would be spending their coins and more businesses will be accepting them lol.

talenah kotang

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins.

Yes, that's right, so we always contribute to the sustainability of the bitcoin market and prices will stabilize. Maybe a method like this must be applied and will attract new investors.

Harlot

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From what I remembered the merchants are the ones who pulled out on accepting Bitcoin because of the price drop that happened in Mid-December to January, the price drop of course could simply mean that the supply of the whales is being sold in the market already which means the supply is increasing but the effect you wanted is obviously not what most merchants wanted, what they see is a falling payment method that if they accepted would give them a lot of financial losses. So I don't think that not hoarding your coins would be a solution for this one.

Coin-1

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Quote from: Kakmakr on August 30, 2018, 02:38:04 AM

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption Cool

I think that Bitcoin is likely an investment asset. For example, the Lightning Network technology can be a solution for merchants who accept Bitcoin. The inflation of Bitcoin is still significant (12.5 BTC for each mined block), so the new coins come into circulation every hour.

Of course, high demand with low supply will skyrocket the price of Bitcoin "to the moon", and HODLERS wait for this. In my opinion, Bitcoin should be a reserve crypto currency without instant payments.

Hydrogen

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I'm not certain on the demand versus supply dichotomy. Expanding bitcoin's userbase and the amount of information and knowledge publicly available on the topic could be a goal worth pursuing for HODL'ers and those interested in seeing crypto currencies grow beyond their current horizons. The further into the public consciousness bitcoin and crypto are able to expand, the more peoples eyes might be opened to potential of innovation and progress over current era financial institutions.

There are video clips on youtube where people try to give away a chunk of gold or silver to people on the street for free and no one accepts it. They wouldn't begin to know what to do with it. Where to redeem it for fiat. What the laws and regulations are surrounding it. And so they avoid it completely. I think bitcoin and crypto suffers from a similar negative precedent where there's a complete lack of information and awareness on it which causes people to avoid it like the plague.

That could be the area to focus on. We need youtubers and social media people to post clips of themselves using bitcoin and crypto. And to discuss their experiences and the current state of things in the sector. That's probably the best way to get the word out there imo.

Neraj Evad

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In cryptocurrency ,we should be more focus on tbe demand ,because when we talk of supply there are many supply of coins flooding in the market and this many coins ,would need a much demand from the customers and investors to invests in this much supply of coins in the market.

Btcepenbob

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I think if we are going to make the economic subject as the baseline then I think demand will be the one who could drive the market to have a huge recovery. This movement will be brought by an increasing demand.

yugyug

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We see a big potential for bitcoin as the next thing of digital currency but the draw back is that it can not be do a faster transaction confirmation or in other words low transaction speed compared to VISA and for its still in infancy until it is bloom bitcoin is still not a merchant friendly like for convenience store and grocery stores some HODLers are hoarding the bitcoin until the full blown hi speed network will be fully implemented and that's the time the flow of supply and demand is quite stable.

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