Replying to Avatar The Fishcake (nostr.build)

Question to the #bitcoin experts out there. If everyone is talking about stacking their sats into cold storage, and effectively taking it out of circulation, how is that good for #bitcoin economy, if nobody is circulating it? It might be a dumb question, so bear with me here. 🐶🐾🫡
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Commstark 2y ago

IMO it’s because most early adopters of Bitcoin don’t want to spend it

We should expect this

If you believe in BTC then you have a dying belief that it will one day have the power to transform your life and make you wealthy

If you spend significant BTC (not just a few sats) then your effectively spending mansions and retirement on coffee and pizzas

BTC reminds us that people are economically incentivized and will always act in their own self interest.

We should expect believers to HODL (most of their BTC)

Personally I’m only willing to spend few dollars worth of BTC

Partly because peer-to-peer onboarding is so difficult

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The Fishcake (nostr.build) 2y ago

That’s literally how people treat gold! That is not good for economy! 🐶🐾🫡

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Commstark 2y ago

Eventually we come to an equilibrium price where people no long value BTC for its future value but instead it’s present value (discounted for some deflationary pressure)

That’s the natural progress

In fact this is how gold used to be used: minted directly into coins for spending

We the originators gets rich as we buy before hyperbitcoinization… the rest earn and spend like they do foster (minus some of the scams)

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The Fishcake (nostr.build) 2y ago

That makes more sense. I am not educated in monetary history so TIL. Thank you! 🐶🐾🫡