Can anybody explain to me why, in an environment in which BTC is expected to appreciate further, anybody would use their BTC to spend?


For example, if I have 10 BTC, I can use that to buy something worth $5,000 today (just making numbers up). However, if I wait until it goes up, I can use my 10 BTC to buy something worth $10,000 a month from now.

Because I'm expecting the value of my holdings to appreciate rather rapidly, as many in the BTC community are, a rational person would hold rather than spend their BTC.

However, if everybody is under the assumption that BTC is still undervalued, everybody will hold their BTC in anticipation of further appreciation.

But because the value of a BTC depends on how many people are using BTC each day, and how large their spending is, nobody will be spending BTC. This will either cause the BTC ecosystem to collapse (if their was an economy that only used BTC), or the value of BTC to collapse.

I'm sure it has been addressed, but I skimmed through this thread and didn't see much. Thanks again for the help.