First up is the expectation paradox, a consequence of Bitcoins deflationary model. The conundrum is as follows: as a deflationary currency, Bitcoin lends towards hoardinga predictable but unfortunate phenomena, because for Bitcoin to thrive, it must not only be used as a long-term store of value, but also as a means to transact value, quickly and cheaply. To spend or not to spend, that is the question.
I really don't get why so many people still seem to have a problem with this one. Providing if/as/when it becomes necessary additional decimal places can be added it matters not how much of the bitcoin in existence is 'hoarded' and not in circulation. It doesn't matter if the total bitcoin available for all world transactions is a small fraction of a single bitcoin. It will still be plenty. Its value is determined by demand which is determined by the the cumulative number and value of the transactions people want this tiny amount in circulation for. Obviously the value of those not in circulation is determined by the value of those that are. [...]
If you quoted what you're replying to, the "decimal places" bit sounds like a non sequitur. As far as the value of coins not in circulation being determined by the coins that are, that's not obvious & also false, currency trading != circulation. If i sold bob 5 bitcoins for 5 dollars, and he sold them to me for 5 dollars, there's no circulation, no matter how many times we rinse & repeat.