Of course it's doing something. Something really important, at that.

It's causing the scarcity that makes bitcoin valuable. BTC being liquid doesn't mean it's not a good store of wealth.

On the contrary, it's one of the ways it's superior to real estate or gold.

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You don't cause scarcity. That already exists.

Whether or not you hodl does not affect scarcity, there's still only 21 million.