If people only hoard it won't propagate.
If nobody sells nobody buys.
And merchants won't implement a payment solution and wait for people to stop hoarding somewhere in the future.
Hoarding *is* the process of propagation. If 5 million people buy bitcoin and hold it, then 5 million people now have Bitcoin.
Who was buying Bitcoin when it wasn't going up in value? Nobody. No propagation.
These are stages. This is not the end of the story.
The increase in value encourages people to buy in.
While they "hold" ... the infrastructure is being built.
In the meantime, Merchants are incentivized to accept Bitcoin. This increases infrastructure. It works perfectly.
And yes, merchants will wait. Why wouldn't they? Its no skin off their back to allow it as an additional payment option, while still accepting Visa & MasterCard.
This is all part of the process of:
(1) Encouraging infrastructure to be built and
(2) Encourage consumers to acquire the currency for future spending.
Everyone is looking at the *current* situation as the *final* stage.
Its only the beginning of what is to come. Stop looking at Bitcoin as a completed product. Its nowhere near that yet.