Quote from: Gyfts on June 17, 2015, 12:13:48 AM

Quote from: sgk on June 10, 2015, 09:38:04 AM

An interesting quote from the article about the HODLers:

Quote

......The catch-22 is people buy Bitcoins because they think the price will go to infinity and beyond once everybody uses them, but they don't spend their own Bitcoins because they think the price will go to infinity and beyond once everybody else uses them. And so nobody uses them.
But if nobody uses them, then the price will stay stuck at something a lot less than infinity let alone beyond. So the Bitcoin faithful have tried to not only convert people, but also convince them to martyr themselves, financially-speaking, for the crypto cause.....

I was going to quote this as well. It honestly has some truth to it. It's what almost everyone wants the concept of bitcoin to be. "I hold it, 10 years from now, I'll be rich".

This isn't the concept of what bitcoin should be about. I feel like some of the "get rich" type of investors will circle around bitcoin like sharks and give people that type of notion about it that Bitcoin is just some investment scheme hoping to one day crash fiat. I do feel he's exaggerating though on title.

If everyone hold bitcoin for 10 years and start to cash out a little bit since the 11th year, the bitcoin value will rise forever, this is guaranteed by bitcoin's design

There is an academic understanding that fiat money's value is decided by its usage, that is because it has almost zero production cost and forced adoption. However, gold and bitcoin's value does not come from transaction usage, they are mostly decided by the demand of storing value and current production cost

In fact, holding will reduce the coin supply on market in a most significant way, while spending will only reduce the coin supply on market for a while (when coins are in the move, they are not available for purchase/spending). Holding 10 bitcoin is equal to spending 10 bitcoin once every hour (suppose the transaction take 1 hour to confirm). The only thing that spending does is to increase the awareness of bitcoin, but you don't really need to make advertisement for something that have true value, you hide it instead, wise people will find it by themselves