Why hoard Bitcoin? - page 8. | Bitcointalksearch.org

Dax Robinson

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Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,
Take me as an example. I will invest 20% of my salary in Bitcoin because I think Bitcoin is very valuable and I believe in Bitcoin, so I think Bitcoin is worth investing in.
But if you let me buy something with bitcoin, I will hesitate and pay with fiat currency first.
Although people can pay in any way, will Bitcoin be your first choice?
Now the difference between fiat currency and Bitcoin is that one is inflation currency and contraction currency. Inflated currency (fiat currency) means that if it inflates, you want to get rid of it as soon as possible. For example, we use fiat currency to buy things, invest in real estate, cryptocurrency, stocks. And to shrink the currency (Bitcoin) you buy goods or services, or hoard it. This has no effect on the economy, except to reduce the monetary base and make the currency more scarce, so deflation is faster.
In my opinion, Bitcoin is a store of value, not a currency. There may be cryptocurrencies becoming legal tender, but not now, volatility and supply and demand need to be considered.

When you hoard bitcoins, it means you trust bitcoins enough to deposit bitcoins. The best money is the most trustworthy money, so hoard bitcoins.

Bttzed03

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Quote from: Robinson66 on August 10, 2021, 03:24:37 AM

~
But most people still choose to invest in Bitcoin.

What's your basis for saying most? If you're basing it on the price, we could say that people with deeper pockets just continue to top up their BTC holdings. If your basis is on the number of wallets holding BTC, there are probably more wallets holding ETH, BNB, or other major alts.

Quote from: Upgrade00 on August 10, 2021, 03:43:24 AM

Quote from: Bttzed03 on August 10, 2021, 02:42:05 AM

Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,

On the contrary, people will choose other cryptocurrencies because it's cheaper than BTC in the hopes that it will also rise in value.

I believe "value" in the op is referring to the underlying value of an asset and not merely it's dollar equivalent.~

That's still unclear at the moment. It would be good if OP comes back and clarify that.

kotajikikox

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Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,
Take me as an example. I will invest 20% of my salary in Bitcoin because I think Bitcoin is very valuable and I believe in Bitcoin, so I think Bitcoin is worth investing in.
But if you let me buy something with bitcoin, I will hesitate and pay with fiat currency first.

are you sure that 20% of your salary will never be needed in the next months or in emergency ? because if not then forget about that word Hoarding because you will only regret when the price suddenly drops bad in time that you needed it badly to cash out.

Quote

Although people can pay in any way, will Bitcoin be your first choice?
.

if given a chance then why not, if the funds i have is an amount that i can just forget for 10 years? trust me i will all invest that amount in my bitcoin folio just making sure that i am supported for that next 10 years.

hugeblack

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Am I the only one who doesn't see any connection between all these points?
Inflation and the fact that a currency is a store of value, scarcity, deflation and other things do not make an asset uniquely valuable. But how to manage the quantity supplied and increase demand is what creates value. For example, there are many altcoins with a smaller supply of Bitcoin, yet it is not of the same value.

Upgrade00

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Quote from: Bttzed03 on August 10, 2021, 02:42:05 AM

Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,

On the contrary, people will choose other cryptocurrencies because it's cheaper than BTC in the hopes that it will also rise in value.

I believe "value" in the op is referring to the underlying value of an asset and not merely its dollar equivalent. Every altcoin is cheaper than Bitcoin relatively, but it would not offer more value as Bitcoin is more likely to growing dollar equivalent and adoption than all other currencies.

Some still fall into that trap of buying coins simply cause they are dead cheap even though it does not translate to higher potential for growth.

Robinson66

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Quote from: Bttzed03 on August 10, 2021, 02:42:05 AM

Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,

On the contrary, people will choose other cryptocurrencies because it's cheaper than BTC in the hopes that it will also rise in value.

Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

~ There may be cryptocurrencies becoming legal tender, but not now, volatility and supply and demand need to be considered.

Although some of its citizens are not in favor of the decision, the El Salvador government already declared BTC as a legal tender. There are also news articles that says legislators in other countries are proposing to do the same. Before all that, Japan already recognized bitcoin as a payment method.

But most people still choose to invest in Bitcoin.
I pay Bitcoin with a lightning grid, which is very convenient.
However, when I paid a few times, the price of Bitcoin rose, I will regret it with Bitcoin to pay.

jinneas

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When you hoard bitcoins, it means you trust bitcoins enough to deposit bitcoins. But this does not mean that hoarding is good. Bitcoin currently does not operate under a model like a normally functioning economy, and the biggest impact on its valuation is that the rise in adoption leads to scarcity and price increases. If you can reduce hoarding and increase investment, you may end up with more benefits.

enhu

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I usually hear the word Hoard used for products stored in a warehouse to wait for the price to go up. ITs often a strategy to profit and just like Bitcoin I guess they are aiming to profit too.

Everyone wants to hold but when the time comes people will sell. Who can hoard BTC after that are institutions who can afford to buy a lot of them later to be used for their Defi platforms.

Bttzed03

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Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

Because of the value of Bitcoin, people will hoard it,

On the contrary, people will choose other cryptocurrencies because it's cheaper than BTC in the hopes that it will also rise in value.

Quote from: Arvin01 on August 10, 2021, 02:20:33 AM

~ There may be cryptocurrencies becoming legal tender, but not now, volatility and supply and demand need to be considered.

Although some of its citizens are not in favor of the decision, the El Salvador government already declared BTC as a legal tender. There are also news articles that says legislators in other countries are proposing to do the same. Before all that, Japan already recognized bitcoin as a payment method.

Arvin01

member

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Merit: 13

Because of the value of Bitcoin, people will hoard it,
Take me as an example. I will invest 20% of my salary in Bitcoin because I think Bitcoin is very valuable and I believe in Bitcoin, so I think Bitcoin is worth investing in.
But if you let me buy something with bitcoin, I will hesitate and pay with fiat currency first.
Although people can pay in any way, will Bitcoin be your first choice?
Now the difference between fiat currency and Bitcoin is that one is inflation currency and contraction currency. Inflated currency (fiat currency) means that if it inflates, you want to get rid of it as soon as possible. For example, we use fiat currency to buy things, invest in real estate, cryptocurrency, stocks. And to shrink the currency (Bitcoin) you buy goods or services, or hoard it. This has no effect on the economy, except to reduce the monetary base and make the currency more scarce, so deflation is faster.
In my opinion, Bitcoin is a store of value, not a currency. There may be cryptocurrencies becoming legal tender, but not now, volatility and supply and demand need to be considered.

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