Most “hodlers” are also accumulating more are they not? And to accumulate you have to transact on chain. There are also points at which it is advantageous to spend some of the capital to improve one’s life. Or you hear of hodlers consolidating UTXOs which is another transaction. I don’t think there are many that just have old coins and just sit on them without accumulating, sellin to buy things, or consolidating. So I don’t see how the network just stops being used. Because everyone is just hodling seems extreme.
yeah nostr:npub1m5s9w4t03znyetxswhgq0ud7fq8ef8y3l4kscn2e8wkvmv42hh3qujgjl3 has been telling me about that.
essentially the design choices Bitcoin has made incentivizes hodling.
but hodlers don't pay for network security.
its kinda a big problem.
and since bad money chases out good money,
its easy to see a scenario where large, powerful players use violence to monopolize the network,
and issue a shitcoin (Backed By Bitcoin ™) for people to actually use for txs,
while they hoard the actual capital.
And nobody actually wants to SPEND their BTC anyway so there's not a lot of incentive to resist.
but like you say
its uncharted territory.
¯\_(ツ)_/¯
Discussion
So there's an incentive in bitcoin due to the hard supply cap for people to hodl that is a positive feedback loop. I wrote more about it here nostr:nevent1qqswuw0sxp59ar2x2hs77dq2gx32wmdarjx7dmv2gxxfe94wxyzakuqpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsygxaypt42mug5ex2e5r46qrlr0jgp72fey0ad5xy6kfm4nxm924augpsgqqqqqqs99y3hz
This problem applies to any coin with a hard supply cap, and the rate at which that happens has to do with the transaction fees, which are a function of use and block space.
sure I agree they will always be some activity,
but i don't think acquiring and consolidating amount to much.
maybe capex could be... 🤔
but like I said
if theres a lower friction shitcoin provided by the central bank you can use,
99% of people probably use that instead
You can accumulate quite a lot on Lightning and then pull the whole sum on-chain. Then it's much fewer transactions.
Also have to think about the fact that more people transacting means more transactions, even if the Bitcoin sum remains the same.
There's more monetary velocity, if ten persons buy one pair of shoes, than if one person buys 10 pairs of shoes.