Subnostr

Then what would I circulate? How would that help bitcoin adoption? 🐶🐾🤔

I didn’t say all, I didn’t say don’t spend. Not saving any bitcoin for the future is shortsighted. You can do both.

Fair! Let’s say in fiat you “save” X% of your paycheck. That X is probably measured less than 20-30. What you save, you probably don’t keep in the bank, you invest (circulation). With bitcoin, let’s say you save 50-80% in cold storage. Cold storage, if I understand it correctly, means no spending or circulation. So, my question still stands. 🐶🐾🫡

With all due respect, I feel like you're overthinking this. Cold storage means no spending, sure. But, it's still in circulation as long as the transaction IDs have been confirmed on the blockchain.

Lightning wallet = checkings account

Hardware wallet = savings account, 401k, Healthcare etc.

Then perhaps I am misunderstanding the concept of cold storage? Does the bitcoin in your cold storage work and circulate? What am I missing? 🐶🐾🤔🤷‍♂️

It just means your keys are stored offline. You can spend from cold storage if you want to.

It’s more secure which is better for longer time frames. Nothing is stopping you from spending tho. That is a personal choice.

Fair. But again, it’s unlike any other currency, when it is your saving, it is still circulating in investments or other products 🐶🐾🫡

There are over 1.9 quadrillion Satoshis there are enough to save some and also keep lots in circulation as you like to call it.

Forget everything you think you know about money and stop listening to inflation based Keynesian economics guidelines. Bitcoin is an investment AND everything else. If you have enough Bitcoin you really don't need to invest in anything else. Stocks, retirement plans, real estate etc. all become rather pointless when you own something that does nothing but go up in value.

Bitcoin is a currency, right? 🐶🐾🫡

😑 dude...

Yes

Ok, I think the note below explains part of my question! Thank you for being patient with me! 🐶🐾🫡🫂

nostr:note1c7wl6efkv7gxl6tm4lce6gaxzsl7dcc7nurp2ck4krqcgam0wa8qwrvfeq

https://bitcoin.org/en/bitcoin-paper

Buddy, you HAVE to read the Bitcoin whitepaper. Every hodler should.

I have a highlighted copy on me 😂

So yea I’d have to say I agree it is absolutely imperative to understand Bitcoin. You must have some grasp of white paper even if not a technical person.

Exactly. It's essential to have, at least, a surface layer understanding of it.

Like I said, your holdings will ALWAYS be in circulation since your transactions have been confirmed on the blockchain. Cold storage just gives you a more secure way of accessing your own personal BTC savings. When you go to an ATM and punch in your four digit PIN to withdraw money, conceptually speaking, it is the same as entering your seed phrase to access your BTC account. You can choose to withdraw or not.

If you adopt it as money you should save some and spend some. Spending all of it isn’t going to make a big difference it’s already settling over a trillion dollars of value per year.

Cold storage doesn’t mean you can never spend it you can spend from your cold storage if you chose to do so.

I meant circulation and investment. Cold is cold, if I understand it correctly, and is taken out of circulation. It is unlike fiat, and more like gold in the vault. Does no good to economy. 🐶🐾🫡

False. Capital accumulation is key to investing in important things, starting a business, investing in equipment or inventory all require capital accumulation these things do help the economy. You are thinking high time preference.

Or land or a house a car etc etc you need to accumulate capital (bitcoin) to do these things not gonna happen if you zap it all away.

That is not a problem, and not exactly what I was asking. I meant “cold” and out of circulation, unlike other currencies. So far the closest analogy I can come up with, is gold. Scarce and largely unused. 🐶🐾🫡

The only bitcoin “out of circulation” is lost bitcoin that cannot be recovered. Cold storage just mean keys offline and usually for saving, meaning spend over longer time frame in larger amount.

Cold ≠ out of circulation

But cold is equal out of circulation while it is not spent. Since I am coming from a fiat world, where even you money in the bank are lent to others to do things and circulate, I see bitcoin cold storage as purchasing a bar of gold and keeping it to spend later. Am I missing something fundamental here? 🐶🐾🤔

Cold storage refers to security ie keys off-line usually with a device such as signing device aka hardware wallet. Your coins are never out of circulation they are able to be spent at any time without any permissions necessary no gate keeper.

Hot storage refers to a wallet where keys are stored on an online device such as a mobile wallet. Less secure, ok for smaller amounts and spending.

Both coins are in circulation, cold or hot just refers to key storage. Granted if you are saving for long term it would be foolish to store in a hot wallet as it’s less secure so better as a spending wallet.

The only coins “out of circulation” are coins that are permanently lost and cannot be recovered.

You can spend cold storage Bitcoin at any point you wish to do so without consulting or getting permission from anyone.

I hope that helps your understanding. Bitcoin is a deep rabbit hole.