Hoarding or Spending, Which Is More Important in the Cryptocurrecy Ecosystem?

[tosmartak]

We all know the Bitcoin world consists of two broad camps: those who hoard and those who spend it. Depending on whom the question is thrown to, hoarders are either a problem or the solution.
Someone recently posted a tweet about how “hoarders are more important than spenders.” A very interesting comment that caused a bit of a huge outrage among Bitcoiners on Reddit.
From your own point of view, who is more important?

[Xester]

We all know the Bitcoin world consists of two broad camps: those who hoard and those who spend it. Depending on whom the question is thrown to, hoarders are either a problem or the solution.
Someone recently posted a tweet about how “hoarders are more important than spenders.” A very interesting comment that caused a bit of a huge outrage among Bitcoiners on Reddit.
From your own point of view, who is more important?

Both are important. Hoarding makes the supply in the market short and it will cause a price inflation. While spending bitcoins makes the market move. If all we do is to hoard bitcoins without spending then bitcoin will lost its value. But if we spend bitcoins without hoarding the value will no longer increase and the users will be discouraged and will cause a panic selling and dump. Thus to make the market livelier it is good to do both since it is how the market works.

[DoublerHunter]

We all know the Bitcoin world consists of two broad camps: those who hoard and those who spend it. Depending on whom the question is thrown to, hoarders are either a problem or the solution.
Someone recently posted a tweet about how “hoarders are more important than spenders.” A very interesting comment that caused a bit of a huge outrage among Bitcoiners on Reddit.
From your own point of view, who is more important?

I think it is important to have a balance between those two because if there is no hoarders then there will be a lot of volume in the market that can slow the growing price while if there is no spenders, then the market will no supply and there will be a lot of stuck demand so i think it is important to always have a balance and do not stick to just one.

[pooya87]

as far as price is concerned both of them have a lot of effect, hoarders buy and hold bitcoin and then buy more and more as they get money so there will always be more buy support than sell pressure.

but spenders are more important because they not only are the buy support and demand but also they are causing the more adoption. someone who holds is just holding bitcoin for himself but when people spend bitcoin they are encouraging more services/merchants to start accepting bitcoin and that helps the "ecosystem" and then as merchants accept bitcoin (for example imagine Amazon adding bitcoin payment) more people will adopt bitcoin as the result.

and the chain continues.

[QuestionAuthority]

Without hoarders there would be no reason to hoard. The price would drop as hoarders dumped their coins to buy product. The vast majority of Bitcoin holders get their coin by mining it. If all they ever did was mine and immediately sell for fiat what would the exchange rate be? Who would be left to buy all the coins without hoarders?

The velocity of Bitcoin (turnover of the money supply) would increase with spending and create a nice stable low price.

Miners holding and buying more coin to hoard = price up

Miners spending by selling immediately and not buying more to hoard = price down

So what's more important hoarding or spending?

Read this to learn what experts think about the Bitcoin price: https://www.sec.gov/comments/sr-nysearca-2017-06/nysearca201706-1642431-146543.pdf

[MiguelTheMVP]

We all know the Bitcoin world consists of two broad camps: those who hoard and those who spend it. Depending on whom the question is thrown to, hoarders are either a problem or the solution.
Someone recently posted a tweet about how “hoarders are more important than spenders.” A very interesting comment that caused a bit of a huge outrage among Bitcoiners on Reddit.
From your own point of view, who is more important?

Those two are very important in the world of cryptocurrency. Those two need a balance to maintain the Power of the Bitcoin.

[buenav]

Hoarders generate value through a reduction in supply whereas spenders generate value through an increase in demand. Currently with sky high transaction fees it is arguable that hoarders are more important since the network can't really support more spenders. But without a general state of crisis there will never be a solution to the scaling issues so in that sense even now the spenders are most important.

[ecnalubma]

The law of supply and demand applies, both are important in the cryptocurrency ecosystem. The point of hoarding is to gain more profit in the future, but technically not guaranteed.

[Juggy777]

We all know the Bitcoin world consists of two broad camps: those who hoard and those who spend it. Depending on whom the question is thrown to, hoarders are either a problem or the solution.
Someone recently posted a tweet about how “hoarders are more important than spenders.” A very interesting comment that caused a bit of a huge outrage among Bitcoiners on Reddit.
From your own point of view, who is more important?

Hoarders and Spenders are two sides of a coin, Bitcoins needs both of them. Now imagine if people only spend and spend the supply will exceed the demand and prices will crash, however if at a relevant time there a decent holding done it keeps the supply In check or let's say increases more demand and that gives a boost to the prices. In the earlier years you could say people will only hoard, and that was true cause you could not buy much with Bitcoins but now days you can virtually buy almost anything. In simpler words Bitcoin is like a car and Hoarders and sellers are it's two tires, now if any one of the tire bursts you can imagine what can happen. The new trend is delightful as people are selling also so the fears of Hoarders are coming down. This year we will see a mixed trend to early to say where the momentum will shift.

[digaran]

Idiots should be the third group of people, those who buy Bitcoin and sell with loss, 16.4M Bitcoins are in circulation until now.
I wonder how many of them are actually active as being in exchanges and being traded all the time?

If dumpers are dumping and hoarders are hoarding then price shouldn't go down constantly and after a while if the people owning large amounts stop converting to fiat and if some people stop buying altcoins paying with BTC and just mine altcoins and sell for Bitcoin we should see some of the whales running dry on supply.


I'm one of the same traders rush to sell when price goes down but that's I suppose is human nature we only think and care about what's in front of us and are usually unable to think about the future.

There is a circle of hoarders, some of them at some point in time will dump for fiat and some others pick them up and keep holding until they see an opportunity to cash out as well, if we had 10 people like Satoshi holding 1M coins each which I suspect we already have price should increase over short time.

When price goes up the volume in fiat of course increases but volume in BTC decreases and that is a good sign to know people really care about the system.

[BitcoinHodler]

Without hoarders there would be no reason to hoard. The price would drop as hoarders dumped their coins to buy product.

this is only true if you are assuming bitcoin is not money!
but it IS money.

and with that deffinition what you said makes zero sense. when you spend you are putting the coins from your cold storage (in your mattress) into circulation. and that only helps the economy of bitcoin.

The vast majority of Bitcoin holders get their coin by mining it. If all they ever did was mine and immediately sell for fiat

you can't immediately sell bitcoin that is earned through mining (aka from coinbase transaction) because that transaction can not be spent until it is at least 100 blocks deep.

and they do immediately spend it as soon as they can because majority of them are pools and have to pay the miners and miners have to pay the bills and grease some palms to continue operating with cheap electricity.

[QuestionAuthority]

Without hoarders there would be no reason to hoard. The price would drop as hoarders dumped their coins to buy product.

this is only true if you are assuming bitcoin is not money!
but it IS money.

and with that deffinition what you said makes zero sense. when you spend you are putting the coins from your cold storage (in your mattress) into circulation. and that only helps the economy of bitcoin.

The vast majority of Bitcoin holders get their coin by mining it. If all they ever did was mine and immediately sell for fiat

you can't immediately sell bitcoin that is earned through mining (aka from coinbase transaction) because that transaction can not be spent until it is at least 100 blocks deep.

and they do immediately spend it as soon as they can because majority of them are pools and have to pay the miners and miners have to pay the bills and grease some palms to continue operating with cheap electricity.

The way Bitcoin is being used Bitcoin is NOT money. It could be someday but it's not today. Bitcoin is currently a speculators commodity. Bitcoin has almost NO VELOCITY. That's the number of times bitcoins change hands in a day. There's a shitload of dollars, right? Enough that every person in the world can wipe their ass on them daily and it would take a long time to run out. The derivatives market alone is worth 1.2 quadrillion of them. But the velocity of dollars is 1.56. That means, on average, every dollar in existence changes hands 1.56 times a day. Dollars are being used as money as support economies all over the world. Without a real economy Bitcoin is not money or is not being used as money. The closest thing Bitcoin ever had to a real economy was when Silk Road was in operation.

Don't be silly. Mining pools are continuously streaming payoffs to their supporters. Each participant in the pool gets a transaction for their share of the block reward and fees. That's what makes up a large part of the daily transactions (which are pathetically low at less than 300k per day). That's not spending. Electricity and upkeep cost is not spending either. I don't know what you're talking about with grease. The block reward alone is $22,000 every 10 minutes (that's $3,168,000 a day or $1,156,320,000 a year), that's a shitload of grease.