Quote from: Majormax on October 01, 2014, 01:59:11 PM

Quote from: rpietila on October 01, 2014, 11:48:01 AM

Quote from: devphp on October 01, 2014, 11:37:48 AM

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.

Is not higher use (velocity) really the only way a currency can gain traction ?

Fundamental demand is always going to outlast speculative demand.

+1

Velocity and usefulness are the keys to the value of any currency (not just crypto). Both velocity and usefulness are tied to the confidence people have that they can USE the currency to buy things of value. Similarly, people won't hoard a currency unless they have confidence in its future usefulness.

I predict that when a truly useful cryptocurrency exists -- one that is valued based on its velocity and utility -- I predict that its price will also be much less volatile than the cryptocurrencies we have today.