Post
Topic
Board Altcoin Discussion
Re: rpietila Altcoin Observer
by
rpietila
on 01/10/2014, 11:48:01 UTC
Hoarding has the goal of delayed buying. Of course, some people can hoard for the sake of hoarding, but most do it to store value for purposes of future consumption. Which again brings us to unique consumption cases that this or that currency can provide.

Once the expected loss in transaction costs is smaller than the expected loss of the transactional currency being a weaker store of value, people prefer currency exchange to hoarding the transactional currency. Between cryptos, currency exchange cost is very low, so I don't give much chance of success to a coin that is a weak store of value even though it had superlative transactional use.

But higher usage on the other hand makes a coin gain in value also, therefore making it a better store of value.