Bitcoin Forum

you see now that bitcoin has a greater value it's more easy for everyone to spend 0.03/0.05 more than one times, instead of spending a greater amount, like 0.2/0.3 few times, when btc has a low value such a $250
so i think the greater is the value of bitcoin, the more people will spend it

what you think?

How you are connecting this two things together?  ::)

I don't think spending will have any connection with value of bitcoin other than the one who are holding bitcoin from really long time so they will have more in fiat, and they may tend to spend more in terms of fiat.

True, but there will always be some who'll remember the story of the guy who bought pizzas for 10,000 bitcoins. (then valued at $25). (now @$7.65m)
What if it happens to them as well?(Like instead of $765 now, it'll become $7,650 in 5-7 years time?) ;D ;D ;D
http://www.coindesk.com/bitcoin-pizza-day-celebrating-pizza-bought-10000-btc/

Still, we gotta appreciate a currency wherein purchasing power is actually rising, which is the opposite with fiat.

http://www.investopedia.com/terms/p/purchasingpower.asp

Purchasing power of bitcoin is just like gold which tend to remain same or rise if compared with fiat. Why this?
Because both Gold and Bitcoin's supply is limited but in paper cash government can print whatever amount they like or private banks wants.

Greater value simply doesn't suggest more people will start to use bitcoin or spend it, this may decrease the total bitcoin that will be cashed out in terms of fiat because when someone spend bitcoin for some services those services will just convert those bitcoin into fiat not to get affected by price volatility.

I cannot see how would you correlate two different subject matters. It's like you comparing apples and sausages at once. Most of the time, people tend to hold longer whenever there is a price increase because they expect a higher return on their coins and tend to not spend those precious coins.

So, does this mean that the reason for purchasing power decrease of fiat is because of its virtually unlimited supply?

It's true both gold and bitcoin supply is limited,though gold's purchasing power isn't very apparent because valuation in dollars doesn't spike so much, but it is stable.
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2011 : with $3 I could buy a gallon of milk,  whereas in 2016  I'd need $4 to buy the same
2011 : with 3BTC I could buy a gallon of milk, whereas in 2016 I'd only need .0052BTC   
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I know that most hold during price increase but a good number are also spending as they like the benefits of getting more goods/services for less btc. Granted these people are mostly those who mainly uses btc as a currency, are not into speculation, or cannot afford to hold.

I would rather say, the higher the value is ... the less people will spend Bitcoin .... they would rather convert it to fiat and then spend it. The

value of Bitcoin does influence the spending habits of the people, but they actually buy less Bitcoin when the price is high. When they start

selling at high prices... the exchanges gets flooded with BTC and the price goes down again.  ;D

But the expectation of getting greater value will make anyone to haord. People will spend only when they need not just due to price levels. Maybe sometimes higher prices will push them to spend but how long?

It can cause people to be more likely to spend btc than regular moneys.

For example if they used their taxed wadges to buy btc

btc increases 20%

they buy product directly with btc instead of converting to usd which would impose a capital gains tax on them.

The connection is to encourage merchant to accept bitcoin.  The more merchant accept bitcoin, the more option for users on where to spend their bitcoin.  This result to mass adoption.  Mass adoption is not possible if there is no merchant accepting bitcoin.  So to encourage them that there is profit in bitcoin, we need to spend.  Spending will serve as catalyst to speed up merchant adoption and then mass adoption will follow.  This will result in incline of bitcoin price eventually.

If I understand this correctly, do you mean people should spend and not hoard ? That is true, but there aren't a lot of opportunities to spend bitcoin. Most of the people who I know into bitcoin are just using it for gambling or an investment.

As for value, the more the value rises the more people usually hold their coin.

I think it is not logical to combine these two things. I do not think the price increase Bitcoin will somehow affect the costs of users.

It doesn't work like this. The Dollar has been gradually losing its value, does that mean more people are hoarding?
If Bitcoin starts gaining value the traders will keep trading and the holders will keep holding. That's how it was when Bitcoin was worth $10 and $100, why shouldn't it be the same when the price is $1000?

To the people who say that we should spend more please point to us where we could spend our BTC on. There really are not that many merchants online and offline that accept BTC. Believe me, a lot of us would love to spend some BTC but theres no good place to spend them to. All the good products can be paid by credit card or cash. So why not use that? It is much easier and I can save BTC at the same time.

It's different for each person. It's indeed true that the higher the price is, the more likely (more than when the price sits at much lower levels) it is for people to spend some of their coins, but that's definitely not the case for all people. The majority of the people only get more incentive to hoard coins at current prices, or to hold them for even a longer period as it is much more expensive to buy yourself some coins nowadays. Other than that, people are free to hold/hoard or spend their coins. It's a bit of freedom that no one can take away from them.

I don't think that holding bitcoin on wallet is hoarding. because there is a huge volume of btc circulating on the market and i'm sure no one can hoard btc because it's volume is always increasing everyday. This will just possible if the difficulty of the blocks to mine will took too long that can cover the everyday demands of the user of btc. But for now, Hoarding is impossible and saving bitcoin is the best option better than spend it now so that you can enjoy the huge price of it in next year.

You mean to say at $760 value, I may prefer to spend 0.1 btc only one time and if bitcoin values $7600 then I will prefer to spend 0.01 btc more number of times due to I am spending less quality in bitcoin units yet same USD value ?

I do not think so. People will spend based on value of bitcoin not just based on how much bitcoins they are having.

That's right and in fact that most of the merchant whose stores are accepting bitcoin often use dollar to determine how much bitcoin will be sent to them
There might be some people who actually accept bitcoin directly in their shop and put the price in bitcoin form but they're actually had been calculating what they will got if they received certain amount of bitcoin and calculate the value to dollar

yes and i think people are more willing to spend tiny fraction of bitcoin than big fraction, and this is more true when bitcoin has higher value, because tiny fraction will be worth more, it make sense to me
and in the end they will spend more not the same amount of usd

don't be so sure about the bolded part, people love their bitcoin, so the less bitcoin(and not usd, see the difference here) they spend the more happy they are

you are not making any sense in my opinion.
because prices per se` doesn't change the fact that people spend or not. bitcoin price can be 1 million dollar and people spend it the same as if it were 1 dollar.

what changes people's mindset to spend or not are only two things:
1- volatility
2- number of places to spend bitcoin.

People will spend bitcoin by converting them to fiat money, then the barrier of limited option to buy is changed to variety of option.  I believe that converting Bitcoin to fiat currency is the same as spending it buying a currency.  So there is no difference whether you buy in bitcoin or fiat currency form the converted bitcoins.  As long as there are third party processor I don't think that the option where to spend bitcoin is limited.

it's a mentality thing in my opinion

Whether you spend your coins at stores that accept Bitcoin through BitPay for example, or cash out your coins to fiat and then spend them, there is indeed no real difference. In both cases the coins get converted to fiat. Other than that, people nowadays mostly use Bitcoin for investment purposes and not really to spend them. Right now we're in very exciting times with the recent increase to where we are right now. People expect an even bigger increase to happen, so the majority of the people will surely not spend much.

I think what encourage spending is back to how much merchants that accepted bitcoin in your neighborhood/city/country, if you don't have any option to spend than hoarding is one of your choice in case of savings or waiting for more stores accepted bitcoin payment.
For now fiat money become a major payment method on daily basis because it's an official and accepted currency for everyone, same thing will happen to bitcoin if we have more adoption and more stores accepted bitcoin, but I hope there is no regulations that prohibits bitcoin payment in my country in the future.

What most of us who fail to see the real situation is if everyone wants to make people spend their BTC then they must first earn their salaries or business profits in BTC. Most of us here do not have real jobs that earn in BTC except for a few free lance jobs and signature campaigns that does not pay enough. Some people have use fiat to buy BTC so of course they are waiting for it to go up in value.

when you buy bitcoin you buy it with fiat for example if you want to buy $250 right now you get ~0.333BTC and then you spend accordingly also.
the only difference is only for those who have bought it long ago when price was a lot lower for example back when it was $400 or $200 but if you are regular spender it really doesn't matter how much the price is.

As quoted the increasing price have helped to spend more compared to the days of low bitcoin price. What needs to be considered is the price hikes, during the same time period commodity price hikes were high. This makes the spending on needs when bitcoin price at $250 and right now the same with small variations.

A lot of people here have the same thought, so whenever the price rise and then fall down in the next day.
But, I stand on the other side and choose not to sell my bitcoin instead of spending it directly on the shops/stores.
Unfortunately there is no any stores nearby yet, I will wait and open one in the future hopefully people would get more familiar with bitcoin and using it to spend and not just hoarding.

Increased price of anything doesnt encourage spending it sadly. Not in the real world  at least. If people expect to have more by doing something, they will likely do it. In this case hoarding the bitcoins. Such are the simple laws of economics.

i know that i'm spending more now than when bitcoin was at $250