Title: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: phishead on September 24, 2015, 08:57:41 PM I was just thinking about this the other day... if more and more people are buying bitcoin wallets to store their bitcoins in, and spend a lot of money to buy cold wallets in general to hoard their bitcoins, wouldn't this kill the bitcoin economy? I would think over a period of time the more people will do this, the more bitcoins will not be regarded as a legit currency... just more as a commodity.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: Lauda on September 24, 2015, 09:00:54 PM Why would this be killing the economy? If I save millions of dollars in cash, is this hurting the economy? Aside from decreasing the supply there is no greater affect. I do not want someone to be able to paste an address and press 1 button to send of thousands and thousands of $ of my money. To prevent this people are using cold storage/hardware wallets/other solutions to keep the majority of their holdings safe.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: bitcoinluv79 on September 24, 2015, 09:06:46 PM No it won't kill the economy...it's similar to if you were hoarding a bunch of cash instead of letting it sit in a bank...
I mean it's not exactly the same, considering cash can be made instantly and out of thin air (as "credits" like banks do) Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: phishead on September 24, 2015, 09:13:43 PM No it won't kill the economy...it's similar to if you were hoarding a bunch of cash instead of letting it sit in a bank... I mean it's not exactly the same, considering cash can be made instantly and out of thin air (as "credits" like banks do) That's exactly what I was trying to get at... Since we know that there can only be 21 million btc ever in the world, and people have already lost up to an estimate of 1-2 million btc already... since more and more people are hoarding their btc's, that would mean an even less amount of the total amount of btc's out there would exist. When you give the example of a person hoarding cash in a safe, that isn't an entirely acceptable analogy, because the Fed can literally just print out new notes and life will go on... I see it differently with bitcoins. Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: dre1982 on September 24, 2015, 09:14:21 PM I think it would even stimulate the economy. If there is less to sell then people want the price will raise.Just a case of ask and demand. So just let the one who invest in Bitcoin take it in cold storage.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: tommorisonwebdesign on September 24, 2015, 09:32:19 PM There isn't anything wrong with keeping your bitcoins saved in a secure place. If I were to store $1 million in a bank it is definitely not going to hurt the mainstream economy. Savings are not a concern to the price of bitcoin. More awareness of the technology and its awareness is needed to boost the economy.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: mallard on September 24, 2015, 09:32:38 PM Surely less money in circulation would make it worth more?
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: MicroGuy on September 24, 2015, 09:38:59 PM I was just thinking about this the other day... if more and more people are buying bitcoin wallets to store their bitcoins in, and spend a lot of money to buy cold wallets in general to hoard their bitcoins, wouldn't this kill the bitcoin economy? I would think over a period of time the more people will do this, the more bitcoins will not be regarded as a legit currency... just more as a commodity. No. What's killing Bitcoin is the lack of core developer consensus and stagnant innovation. When Satoshi vanished, he apparently took all the creativity along with his 1,000,000 plus bitcoins. :( If the core devs can't agree on a single line of code change, how will they ever manage to innovate? Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: figmentofmyass on September 24, 2015, 09:47:10 PM Surely less money in circulation would make it worth more? i think this is a bit more complex. i don't think we can approach this question in a vacuum (on its own). from a currency perspective, velocity of money is affected by too many factors to approach it the same as "low supply = high demand." yes, fixed supply means higher demand (higher value) than an unlimited supply. but that doesn't speak to the issue of hoarding. on one hand, hoarding = less btc liquidity to exchanges --> less sell demand. on the other hand, without some level of money velocity (value transfer among network participants), the network eventually becomes worthless, as no one uses it to transfer value. it's a tricky question. economics is opaque as hell. Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: pereira4 on September 24, 2015, 10:23:18 PM Bitcoin can be divided infinitesimally (or almost), there's never going to be a problem of liquidity, I think that concept is absurd. As long as there is demand, there will be liquidity. People is free to hoard or to spend it.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: knowhow on September 24, 2015, 10:44:10 PM Well the supply and demand at bitcoin looks like hasnt power enought to make it go up or down,since as i know the demand and supply looks the same as bitcoin usually moves a bit daily soo there is some 0 new interest into getting more as into sell more bitcoins.
Title: Re: Cold storage/physical bitcoin wallets killing bitcoin economy? Post by: ranochigo on September 25, 2015, 03:40:46 AM No it won't kill the economy...it's similar to if you were hoarding a bunch of cash instead of letting it sit in a bank... I mean it's not exactly the same, considering cash can be made instantly and out of thin air (as "credits" like banks do) That's exactly what I was trying to get at... Since we know that there can only be 21 million btc ever in the world, and people have already lost up to an estimate of 1-2 million btc already... since more and more people are hoarding their btc's, that would mean an even less amount of the total amount of btc's out there would exist. When you give the example of a person hoarding cash in a safe, that isn't an entirely acceptable analogy, because the Fed can literally just print out new notes and life will go on... I see it differently with bitcoins. |