Bitcoin encourage spending and not hoarding

[Vaccinus]

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?

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[piloder]

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.

[acroman08]

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?)
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.

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

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

[amacar2]

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

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

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.

so i think the greater is the value of bitcoin, the more people will spend it

what you think?

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.

[dothebeats]

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.

[acroman08]

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

Purchasing power loss/gain is an increase or decrease in how much consumers can buy with a given amount of money.

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.

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.
---
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   
---
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.

[Kprawn]

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.  

[streazight]

so i think the greater is the value of bitcoin, the more people will spend it

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?

[Tmdz]

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.

[BitFinnese]

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.

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.

[ajaxmoor]

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.

[staff_1307]

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.

[coolcoinz]

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?

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?

[pinkflower]

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.

[1Referee]

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.

[BlockEye]

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 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.

[wuvdoll]

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?

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.

[TastyChillySauce00]

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?

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

[Vaccinus]

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?

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.

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

[Red-Apple]

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?

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.