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by josephagoss
4862 days ago
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The good thing about the price increasing is that the early adopters are more willing to spend BTC and also convert BTC into fiat. This increases the overall value of BTC because as more people who own BTC bought in at a higher price, it will be harder and harder for the price to crash down to levels lower than the average price of BTC purchased. (I argue this based on the psychology of buying BTC at a certain price) Back when the large 2011 crash happened and even now to a slightly lesser degree the average BTC acquired/bought is still low, (i'd wager around $5 for the entire network of BTC still accessible, as a example) As more earlies sell and purchase items, this average will increase, and as it does the possibility for BTC to fall below this average becomes harder and harder. |
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I'd much rather they start spending them within the BTC economy than cashing in for "real" currency instead. The biggest hurdle for BTC isn't even the hoarding, it's that they hoard just because it's still not seen as a real alternative by most folks so they're waiting for the "realization, spike" in prices (I don't think we're there yet).
Few people these days actually hoard cash; instead, they invest in commodities or companies. But these people are hoarding for the value of the currency itself. It's like gold all over again.
I must confess though, the first time I heard about BTC, I did take it for just a very elaborate ponzi scheme. The irony is that the hoarding may, if left unchecked, turn it into exactly that.