Quote from: o_e_l_e_o on November 02, 2021, 08:45:30 AM

Quote from: superbotolo on November 01, 2021, 09:58:59 PM

That's my issue. If BTC has value because it can be used to buy goods, what happens where everyone is HODLing and nobody is using it to buy goods?

We will never reach a point where nobody is using it to buy goods. There will always be at least some people like me who use bitcoin primarily as a currency. And indeed, I think the number of people using it at least partly as a currency is increasing - certainly I personally know of far more merchants accepting it and I spend it in a much wider variety of places than I did 5 years ago. But I still think those people are very much in the minority and are growing at a slower rate compared to the percentage of people that are only here to make fiat profits.

Quote from: superbotolo on November 01, 2021, 09:58:59 PM

And now that I think about this, one solution could be to introduce a system in the Bitcoin protocol where a small, but increasing portion of BTC that are not moving from an address are transferred automatically to a "community address" for other users to buy, or maybe it goes to active nodes as a way to incentivize network security. The more you hold, the more BTC are transferred to this community address or to nodes.

I would be against this proposal 100%. One of the basic principles of bitcoin is that you can be your bank, hold and secure your own money, without any intervention from third parties. As soon as you start effectively stealing other people's coins for any reason, then you have violated this principle and bitcoin is little better than seizable and freezable fiat.

It might also change more towards Bitcoin being used a currency when there are more favorable tax laws all around the world. Right now using Bitcoin can lead to capital gains taxation if the BTC you use increased in value. That makes it quite cumbersome for all the accounting requirements if you have to list buy and sell/use prices for every coffee you purchase or every package of chewing gum. I think that is one major aspect that would have to change in a number of countries in order to see Bitcoin circulate much more as a currency at least for everyday purchases (Lambos and stuff, you know...) Wink