Subnostr

Can someone more knowledgeable explain to me the reason so many Bitcoiners embrace the #hodl mentality?

I get the logic, that's not the problem. Saving money is generally better than spending. That's just wise personal finance skills. However, money is money and if you never use it to buy things, how is it any better than an incredibly expensive collection of cryptographic data? And how are more businesses expected to start accepting #Bitcoin if Bitcoiners don't ever spend their money? Furthermore, how will a Bitcoin-powered parallel economy function if everyone is stingily hoarding their coins?

As always, this is a genuine question. No hate or coin wars intended, I'm just trying to figure out what the argument is. #asknostr

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Discussion

Low Information Voter 1y ago

No expert here, but I believe the original rant that spawned the #hodl meme was declaring that the speaker was going to hold, rather than speculatively trade his bitcoin back and forth. Because he felt trading fiat => btc => fiat was rigged in various ways.

Holding rather than speculating does favour stability in exchange rates, which is favourable to bitcoin-as-medium-of-exchange.

But you are also correct to say it may be discouraging to merchants, its not exactly a vote of confidence in the (very low) velocity of bitcoin-as-medium-of-exchange.

Nostralian 1y ago

Not an expert either. The value of cash is always trending down, best to spend it immediately on bills, costs eyc, Bitcoin trends up, so it's a better store of value.

As far as spending, if you're going to buy, spend or pay bills anyway convert to Bitcoin and pay that way, Strike will let you pay from cash to Bitcoin. And small payments are easy with lightning.

Gucky 1y ago

Easy, you need a certain amount in your wallet before you feel good to spend a part.

Séimí Mac Síomón 1y ago

I agree with you, if we aren't going to use Bitcoin, then it's not really a revolution, or only a partial revolution. We need to use Bitcoin to leverage the ideals of agorism, creating our own counter-economic structure to rival the centralised economy that we see today.

Den Yellek 1y ago

Merchant adoption will not come when they decide they want bitcoin.

It will come when they decide they don't want fiat.

halalmoney 1y ago

A key factor is the % of one’s wealth which is in Bitcoin. If the % is low, it makes sense (from a bullish on Bitcoin perspective) to spend out of fiat first. If and when the % nears 100% then spending one’s Bitcoin will become more of a necessity (assuming one doesn’t use the Bitcoin as collateral for a fiat loan).

Both the right ideas, the timing and the major flows of capital need to intersect for a paradigm shift to occur.

Jacob | Five Eye Tea 1y ago

I guess I can grasp that. I just don't see a reason to never use Bitcoin even when you still have fiat in your possession. If I were able to obtain Bitcoin (tried and just can't figure out a viable means for me), I'd obviously save and stack as I can but I'd also try to use that Bitcoin for transactions if it's a possibility.