Bitcoin Forum

With many of us holding our coins with the intent that the price will increase (I believe this is the case?), does this affect the long term viability of any of the coins? This could be because we are relying on other people to demand the currency (for spending etc.) but very few people actually do. Doesn't this mean many of us are holding coins whilst anticipating another person to actually do something?

If most people are treating crypto currencies as an investment, will it effect the long term price just decline? Is there any statistic in terms of how many people holding bitcoins (and Altcoins) for long term investments and how many are actually using it spend? It would be good to have this clarified.

Most of people are holding since there are not to many use cases. Market is just pure speculation (specially the most of the altcoins). Even if everyone of us transfered their bitcoins between each other we would see  to long waiting times for a transaction to get confirmed, hopefully this all will be sorted out during next month. But the answer to your question is (in my opinion) there are like 60% - 80% holders and rest are people who are using it. Well bitcoin is still something new.

with bitcoin:
most people do see it as just an investment.
but there are also a lot of people who want it as a currency and have been using it (spending) on many places online or offline and enjoyed the profit that way.
and there are lots of way to maximize that profit like buying ultra cheap gift cards and then buy goods with them with big discounts!

with altcoins:
there is nowhere to spend them so you have no other choice to invest, wait for the rise, then dump for profit. mostly to gain more bitcoin and get out to hold or use that bitcoin instead.

We are cutting away the fat from the flesh now. There were a bunch of short term speculators who has been pushing up the price and that was

not sustainable. The sudden decline in the price is scaring off these speculators and they are panic selling like crazy. We will start buying again,

once these people have left the scene. When last have you seen such cheap coins?  ;D

No, if people continue to hold their currency and demand stays the same or increases the long-term price will increase.

As far as statistics, the most reliable set are from the charts at Blockchain.info (https://blockchain.info/charts).

Alternative currencies can't really be spent anywhere. For example, who accepts Ripple or Dash for payment of goods and services?

And as for Bitcoin, its acceptance as currency isn't widespread or consistent around the globe. And the fact that transaction fees have increased and confirmations are taking hours it's become less attractive for retailers to adopt as a currency for payment. This tends to have the benefit of keeping prices up, but it also requires that demand remain stable at least.

This last week we've seen a sell off and that's because people are selling their Bitcoin (and other cryptocurrencies). I believe it's due to fear related to the Aug. 1st Segwit activation, but that's just speculation on my part.