Fine, but what’s the incentive for the massive holders to spend it. Say BTC gets to the market cap of SPX. 33.36 trillion dollars, and it will have to get much bigger than that. The top wallets would be trillionaires many times over. What’s their incentive to “spend” it. The more they hold, the more they’re worth. It’s still leaves “peanuts” for the little guy.
Discussion
Good question, and the answer is quite simple. You can’t eat a Bitcoin, can’t wear it, live in it or enjoy experiences with it. People will buy stuff once they need it or feel like it’s worth it for them
Sure. But if bitcoin is the defacto currency then they can just put enough into circulation to make the bit of BTC they spend to be massively expensive and pay for whatever they need, while still having enough to do massive projects that they want to do (or not). Could also die and have the coins locked forever.
Yes, but by limiting spending they limit the amount of stuff/influence they can buy. The point is, once you spend it, you can’t create more unless you provide value to others. To your second point: that would be awesome. Let’s say I own a million bitcoin. If I die and don’t pass it on, this means that these 1 million bitcoin will never be sold on the market again. It’s basically a donation to everyone else that holds Bitcoin, as contrary as it may sound.
Eth on the other hand, pays people for holding the token. So rich people get a free money for having money. They are not incentivized to sell their eth, because the can live off the staking rewards ‘forever’