Quote from: Onestopbrokers Directory on August 12, 2014, 12:48:15 PM

Quote from: Erdogan on August 10, 2014, 08:46:51 PM

Quote from: blackhull on August 10, 2014, 06:23:57 PM

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.

Trade is necessary for it to be money, but does not command the value. The value comes only from the willingness to hold.

I agree, trade is necessary for it to be money. Time is needed for people to trust it. As more and more business accepting BTC for money, the better is for the whole system.

People will be using money even if this money increases in value. Not everybody will hold their BTC. People will just think twice before spending or investing. Merchants will have to offer something really good and useful to outweigh decreasing prices (it works for mobile phones, computers, and will work for food and housing as well - eventually). I do not want ANOTHER inflationary currency. There is plenty of this already.