Will storing bitcoin kill it? - page 3.

calkob

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Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin and there is no single transaction for days,all miners will quite mining as without transaction there would be no reward.
Will it not kill bitcoin and make it useless?

Absolutely not, hoarders are what give bitcoin its value, bitcoin would have no value what so ever if everyone tried to give it away for other stuff. This concept is hard to understand at first but Holding savings in bitcoin is vital to the network. You should listen the youtube link i will post below, it explains it perfect.

https://youtu.be/e1eKHXdlx2Y?list=FL_1xDQgnywzy4JeHeRy1eKA

Roger ver pushes the whole bitcoin should be spent thing and then on the other hand admits that hodlers give bitcoin value Undecided

Slark

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Quote from: Taki on March 06, 2017, 03:04:08 PM

Bitcoin is a currency and as any other currency it need to circle to stay alive and to be demanded. Storing bitcoins really can kill this currency very fast.

Bitcoin was invented to be form of currency, but it has many drawbacks and Satoshi knew that in its initial shape BTC is inferior to. already present at that time, centralized payment processors.
At least if we are talking about transaction capacity (limited by block size) per second and 10 minutes confirmation. Peerless and decentralized network is still brilliant invention.

The main problem of BTC today, is not even horrible fees, but lack of incentive to spend coins.
There is no bonus for spending coins, in fact, you are being punished for using Bitcoin, due to deflationary nature of BTC.

cryp24x

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Definitely if all people are storing Bitcoin and no one is using it, then people will tend to forget about Bitcoin and start pulling out their demand. Once there is no more demand for Bitcoin, then Bitcoin will definitely die. But I bet people will sell it once the price starts to go down.

ahmedjamal1998

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OK let me re-read this.

Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin

If this happens and transactions stop, yes I guess the value will drop. And once it starts dropping people will start selling them (getting rid of them as they value is decreasing) and with that circulation starts again and the price halts. If more people sell then these are some more transactions. At this point it depends on the people everywhere who own bitcoins to move them around to give them value ?!

That's all out of theoretical imagination LOL Cheesy

Taki

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Bitcoin is a currency and as any other currency it need to circle to stay alive and to be demanded. Storing bitcoins really can kill this currency very fast.

lionheart78

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Quote from: DomainMagnate on March 06, 2017, 02:50:52 PM

Quote from: philiveyjr on March 06, 2017, 07:28:53 AM

Just a few questions, What would happen if people just stored gold and stopped trading it? Would it still hold value or would the value of it drop all of a sudden? I dont think the value would change much especially if its the last BTC ever to be mined or kept. As long as people still want BTC, it will have some value.

You didn't get what I meant.True that both bitcoin and gold have values but bitcoin needs miners to move while gold has no such requirements.If you hold gold for long and after say 10 years decide to sell it,you can simply give that gold to buyer without needing anyone to confirm it but for btc you need miners to confirm your transaction otherwise it will not move to buyers wallet.IF all miners are out of business,bitcoin will become useless.

If this thing happen, the one holding/hoarding bitcoin will be the one to move the block. We all know the less miner mining the network, the lower the difficulty to mine another block. So thinking that miners won't stop at the same time, we can project that mining difficulty will start to decrease as miners stop mining. From the point that there is 0 miners mining the system, I bet that the difficulty will greatly decreased enabling a single cpu to move the block. This will enable them to transfer and confirm their transaction if they decide to sell their BTC.

Though the worst part of the scenario will be the demand getting to 0 making Bitcoin useless.

DomainMagnate

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Quote from: philiveyjr on March 06, 2017, 07:28:53 AM

Just a few questions, What would happen if people just stored gold and stopped trading it? Would it still hold value or would the value of it drop all of a sudden? I dont think the value would change much especially if its the last BTC ever to be mined or kept. As long as people still want BTC, it will have some value.

You didn't get what I meant.True that both bitcoin and gold have values but bitcoin needs miners to move while gold has no such requirements.If you hold gold for long and after say 10 years decide to sell it,you can simply give that gold to buyer without needing anyone to confirm it but for btc you need miners to confirm your transaction otherwise it will not move to buyers wallet.IF all miners are out of business,bitcoin will become useless.

Proficient

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After 2040 when the flow of new Bitcoins dries up, the answer is yes since miners would be reliant on transaction fees. Before then, it will still harm Bitcoin. Bitcoin was intended to be used as a currency, and this idea of just hoarding it and never actually doing anything with it will not contribute to any price rises that occur.

Mometaskers

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Let's just say that this do happen, that for one day all transactions cease. It would still have some value since there are still new coins being added by miners, they are just not selling it so I doubt that prices would drop to 0. And let's just say the price do drop to 1 and miners start selling their coins again. People who already have bitcoins can buy more (after all, what is $1 anyway). Sooner or later this "just hold it in" situation will break because of that.

ivanst776

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Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin and there is no single transaction for days,all miners will quite mining as without transaction there would be no reward.
Will it not kill bitcoin and make it useless?

It can kill but this scenario is not going to happen because there would be less opportunity to use bitcoin and it will not be called bitcoin anymore.

We store bitcoins for a long time but we do not have that much power that could affect the market or the bitcoin price so this is directly depended from big holders, big traders and big exchanges.

I think that bitcoin addicted people hold more bitcoins that others, and we should be sure that exchanges and bitcoin mixers have a large reserve and should count that as a storing/holding too.

BillyBobZorton

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It's pretty easy to see that it does not kill it, it simply makes it less liquid, which means, if the demand stays the same, the price will go up, and since with time more and more bitcoins will disappear at a faster rate that they are created due the decreasing inflation, the price can only tend going upwards.

roadbits

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Quote from: xIIImaL on March 06, 2017, 12:17:06 PM

Quote from: Ayers on March 06, 2017, 09:14:22 AM

you are wrong, no transaction doesn't mean no reward, miners can still mine their block, they just take no fee from transaction, but fee isn't profitable as mining for them, but this is not possible, there will be always transaction ongoing, the miners have nothing to worry about imho

Miners won't give damn only because of your savings alone apart from you there are millions of transaction has been moving via blocks everyday. If still wish to save for your future purposes and price expectation. You can hold for long term also. Everyone prefer long term bitcoin holding. Even I have tried but still selling out for everyday uses.

We think to hold for a long time to make a big profit, But once the price will be stable at one point for a long time we will not control our feelings, we will sell our coins. It happened to me many times. I thought to wait for some time, but the price will tempt me to sell my coins. And I am bit scared why because if the price goes down, i will lose profit.

wxa7115

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Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin and there is no single transaction for days,all miners will quite mining as without transaction there would be no reward.
Will it not kill bitcoin and make it useless?

No, the only way there were no transactions is for bitcoin to be useless already since no one transacts with defunct coins, whether those are altcoins or fiat, so an scenario like that will never happen, just look at gold, most gold is stored and not much is done with it, but it has been around for thousands of years and it is still relevant.

xIIImaL

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Quote from: Ayers on March 06, 2017, 09:14:22 AM

you are wrong, no transaction doesn't mean no reward, miners can still mine their block, they just take no fee from transaction, but fee isn't profitable as mining for them, but this is not possible, there will be always transaction ongoing, the miners have nothing to worry about imho

Miners won't give damn only because of your savings alone apart from you there are millions of transaction has been moving via blocks everyday. If still wish to save for your future purposes and price expectation. You can hold for long term also. Everyone prefer long term bitcoin holding. Even I have tried but still selling out for everyday uses.

Qunenin

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Quote from: batang_bitcoin on March 06, 2017, 08:08:42 AM

Quote from: carlfebz2 on March 06, 2017, 08:00:45 AM

Quote from: batang_bitcoin on March 06, 2017, 07:56:37 AM

Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin and there is no single transaction for days,all miners will quite mining as without transaction there would be no reward.
Will it not kill bitcoin and make it useless?

Okay, let's assume that there is that "zero" transaction. Then the supply will be lesser that will make the demand higher. But in reality, this is a very impossible thing to happen. And miners will always be there, as a matter of fact there is no bitcoin user that isn't holding. Most of us have some bitcoins that are keeping, so it won't kill bitcoin.

If you have just read the op's sentence he does say that all bitcoin users are holding its bitcoin and dont intend to make any transactions between among other users which means theres no activity.Supply is there but the demand is nothing then value would lessens or zero at all.

No, the supply isn't there. Since all of us will hold, there's no movement and supply in the market. And we know on how the law of supply and demand goes on. But it's hard to think that there would be zero transaction for real and I guess the miners will not actually depend on the block rewards and confirmation of the transactions.

Only storing bitcoins will definitely has bad effects but this is something which is unrealistic. It cannot happen that all the trasncatiosns are stopped and there is no movement on blockchain making it impossible for miners to earn Grin

RENATA612

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Quote from: DomainMagnate on March 06, 2017, 06:21:01 AM

If everyone start storing bitcoin and there is no single transaction for days,all miners will quite mining as without transaction there would be no reward.
Will it not kill bitcoin and make it useless?

things like that really can kill bitcoin, but I think it's impossible on many bitcoin users, it is not possible in a day none of these are transacting, while the state of each person is different, will finance its

Ayers

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you are wrong, no transaction doesn't mean no reward, miners can still mine their block, they just take no fee from transaction, but fee isn't profitable as mining for them, but this is not possible, there will be always transaction ongoing, the miners have nothing to worry about imho

hajimasan

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No, not all people will store bitcoin. actually this type of hypothetical topic should be removed because these type of topic have no influence on our real life as we are not going to face any situation where no one will u bitcoin and they will store it instead.
Secondly about 50% of the bitcoiners are making Thier most of the profit with the day trading which involves the many numbers of transactions , so here no any big matter happen if we store our big amount of Bitcoin in our wallet Because all transactions needed equal amount of fee to confirm .
But still if everyone will follow your idea to store bitcoin then instead of going to kill the Bitcoin , it's Price will go rise sharply speedly Because of increase of the demand .

xuan87

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Yes theoretically it is true, when nobody spending bitcoin then bitcoin will lose it values and then reach the bottom and become no value, but it is very difficult to ask everyone in this world to save bitcoin and never spend it, so if nobody spend it then bitcoin will doom but the chance that to happened is almost near to 0%

Soul Reaper

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This is a very hypothetical kind of statements.
All forms of currencies and money are totally relative,
They just act as a mediator for the trade to happen smoothly.
We basically need resources not money . Money controls the deals between 2 people.
So if everyone starts storing bitcoins in their usb's and doesn't use them at all,
The demand for bitcoin will decrease and so will it's cost.
When it comes to mining the block reward will still be given to the miners.
And mining will be shifted to some other crypto currencies which will balance the loss of bitcoins.

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