As you can see, I'm learning ABC in crypto currencies and studying this for last 3 4 months, even after reading all these web pages, forums etc, still Im having one basic question needed to clear out. I would really thankful if someone can help me with this.
We all know, BTC is making a huge growth for past few years and as a result, people start to invest / trade in BTC. With my little knowledge I assume that no one is going to use BTC / couple of Sathoshi to purchase things as they are really good to keep (HODL) as the value is going high and high. But if you think of any of fiat currency, the value of money is depending on the use of it. For example, if everybody is keeping their money (fiat) in their pocket without spending, the market will not have enough money for trading and value of the currency will not goes up. Why the same principle not applicable for BTC ?
Ive seen lot of answers like, market will not have morethan 21M BTC and that amount will be saturated by 2140, hence there will not be any inflation etc. But what I do not understand is, if a currency is not using (in trading purpose you buy something with that money), what is the logic behind the reason of value of the money goes up ?
The Main and basic reason to increase in the bitcoin is because the people are going to use more and more bitcoin .
Here you can see that another coins ( altcoins ) are in the market Thier value is about 1 Satoshi to 1000 Satoshi averagly for new coin , why this is happening that they have small value per coin , this is due to the use , And also we can see that bitcoin is a person to person using currency and no authority is in the market holding the bitcoin , but opposite of this the fiat currency in the practical.life we have saved in the banking company where they use our money and making the uniform flow of the money and also fiat are limited to.use in the country but bitcoin is not limited to particular places but people are using at international level without any restriction , so why not he value of the bitcoin will increase .