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Replying to Avatar 2Pac

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.

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mister_monster 11mo ago

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.

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