The real value of bitcoin depends on how many transactions that purchase with bitcoin.
This is complete nonsense. A currency is not valuable because how often it changes hands or how frequently it is used as to facilitate a a purchase. A currency is valuable because people want it--e.g. it's demand
You claim that Bitcoin's value depends on people spending it. Let’s think about that for a minute. You are essentially telling the merchant, “Hey look at this totally awesome thing that I want to get rid of! You should trade me some stuff for it!” Not actually much of a sales pitch, is it? Why would the merchant want something that you, apparently, don’t want? If you really want him to start accepting bitcoins himself, ask him, “Do you take worthless paper money at this store?"
Right now, and probably for as long as stores will accept US dollars (or EUR, whatever) it makes more sense to use that money for transnational purposes. In other words, if a merchant is willing to accept a superior deflationary currency AND an inferior inflationary one, you should definitely use the shitty currency, and keep the good one for yourself.
Read this article by Daniel Krawisz; he explains why hording what matters:
http://nakamotoinstitute.org/mempool/im-hoarding-bitcoins-and-no-you-cant-have-any/
If nobody purchases anything with bitcoin, bitcoin will become worthless. Hodling or storing bitcoin never help the community anyway.
These two statements contract each other. Nothing is going to be worthless that has a strong demand (hording). The reason Bitcoin's price has gone up in the last 8 years is not because it is being used to buy alpaca socks, or trinkets from NewEgg; it's going up because some people have figured out that Bitcoin is God-Money, and it makes a lot of sense to horde as much of it as possible.
It is a long-term negative outlook. People here claim that the Federal Reserve and central banks are fraudsters. A deflationary cryptocurrency would hurt 100s of millions of people if it actually replaced our current central banking system. Inflation and control of interest rates serves an actual economic purpose.
Managing low levels of inflation is beneficial to the economy because it discourages savings and encourages lending and economic growth. We aren't just talking about savings and lending at a small retail and consumer level. People here argue that this monetary policy is unfair and penalizes savers. It does, but there is a reason.
If you utilize a deflationary currency, there is less incentive to lend. Lenders and creditors will make more money by saving and holding a deflationary currency. Lenders and creditors are encouraged to lend with an inflationary currency, otherwise their dollar loses value.
Corporations, companies, and small business are the biggest borrowers of debt in the world. Businesses are able to grow through debt financing. By growing their business, they normally employ more people. Jobs increase and unemployment goes down. The thinking is, if currency is deflationary, available credit to businesses and consumers decrease. Businesses can't grow, the economy slows down. The number of jobs decline and unemployment increases. Consumers can't buy homes or cars; home value decline sharply. This is why people believe deflationary currency is bad. Can it work? Maybe, but we would have to undergo a terrible recession for it to eventually work.
Do not feel guilty about not "supporting" merchants who accept bitcoin. If their business model depends on the goodness of customers' hearts, it's broken. If they want your bitcoin, they have to earn it.
Quite frankly, I think it's completely impractical for companies like Overstock to accept bitcoin. I mean, sure, it's a nice political statement. But who actually needs censorship resistant payments to buy bedsheets? Nobody. Nobody is trying to stop anyone from buying bedsheets. I suppose it's nice for the unbanked to be able to participate, but let's face it, that's a tiny tiny market for a company like Overstock. Empirical evidence bears this out. A tiny fraction of their customers pay with bitcoin. When you subtract the ones who used bitcoin just to show support, (leaving only people who have no other choice except bitcoin), what's left is completely negligible.
It's absolutely fine to keep your bitcoin stashed away for occasions when you actually need it.
Purchasing and accepting bitcoin is necessary and provides many benefits in the right circumstance. I enjoy the anonymity, the lack of fees, and the separation from my bank. It just goes from one blockchain wallet to another. I don't have to worry about exchange rates since some of my transactions are with people out of country, and I never have to worry about a court order seizing my bitcoin because there is no bank the courts can force to seize my money. I still use my local currency for most things, but that is on the way out. I just make sure to keep my bitcoin balance floating. Whatever I spend, I immediately replace.
Face it, people enjoy making trades with others without worrying about reporting the trade. It's nice to have a global market of people that can provide each other with goods and services, while at the same time not involving any banks or governments.
Also consider that when a currency's value collapses due to hyperinflation, this does not happen as a result of people not trying to spend it. It happens because people stop wanting the shitty currency--e.g. everyone wants to spend it, but no one wants to horde it.
We have to promote trading bitcoin and purchasing with bitcoin.
No, we just have to horde it. Actually "we" don't even have to do that. If we don't horde it, other people will realize it's value and they will horde it and profit from its rise.
The idea that Bitcoin is valuable because people spend it, is poppycock. Bitcoin is valuable because of the horders, and the horders' realization that Bitcoin is an immortal deflationary God-Money that cannot be stopped.
Spend your dollars, keep your God-Money for yourself.
Yes its true. Bt just sad i was scam 2 weeks ago using bitcoin and its not reverseble. Tnx for sharing I upvoted n follow u. Hope u will cheers☺
Thanks so much!! The "coffee cost me $10,350 x years ago" viewpoint never made sense to me.
If you see it that way you also must consider every spare dollar lying around at your bank account you didn't invest in Bitcoin at that time. The $100 you didn't invest would be worth $100,000 now too. Not converting it to Bitcoin did cost you 999,900$.
In conclusion, if you are absolutely sure Bitcoin will rise in value it doesn't make sense to even hold any fiat money. Just holding fiat money will cost you regardless. And if you don't hold fiat you have to pay with Bitcoin. It makes no difference.
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