Post
Topic
Board Speculation
Re: Bitcoin all time high and the hoarding theory. (Poll included)
by
Asrael999
on 19/06/2014, 06:46:17 UTC
Money has multiple functions, one of them is hoarding (aka saving). Even if Bitcoin had zero merchants and served this hoarding function alone it would be valuable.

Because it is:
   - Decentralised
   - Non-inflationary
   - Easily stored and transferred
   - Anonymous (sort of)
   - you continue...


I would argue that in a conventional economy there is a difference between hoarding and saving.
Saving = Investment, ie savings are productively invested in the future of the economy
Hoarding = burying in the back garden (or location of choice) - this is a non-productive use of resources - and there are very few ways currently of productively investing BTC (I am not sure lending them on margin counts - and Havelock Investments and the like are not yet trusted by large sections of the community - with many valid reasons)