Hoarding Vs Spending Effect on Price

[dsp]

Is there any differences between hording vs spending a coin as it relates to supply and demand.

Scenario 1 Coin is hoarded or saved for one year so functionally it is not for sale on the exchange.

Scenario 2 The coin is continually spent over and over again the value is only exchanged by proxy to its market value.

Since bitcoin is dividable it functionally does not matter over all if there is coin shortage. But in the long run could bit coin pull the head fake of the century as speculators may see what will looks like a price bubble from hording but if it is in fact driven by economic exchange.

Right now I would imagine the circulation loops are pretty short but over time they can get longer and longer as there are more participants. Right now we can all speculate as to what is driving the price (speculation) but if the situation reverse at some point a chart will not really show you why.

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[walidzohair]

I think hoarding, stock circulation, vomiting, exchanging for other currencies are all bad for bitcoin.

the only good thing is when it is circulated for goods again and again so the value keep accumulating inside the bitcoin hole and the demand raise!.

But Again that have a minor effect as the bitcoin do not have the scarce factor.

As I do believe we have bitcoins more than the earth + March populations together! (21 Million BTC * eight small bosoms in every bitcoina).

Of course this is by design!

So, Every human been can have like 4 bosoms (4 of the smaller bitcoina unit) and yet we still have a lot of bosoms intake!

[Grinder]

Generally hoarding will probably make the price peak higher, but more volatile. Spending it will make more bitcoins available for buyers and sellers, so it will probably make the price lower but more stable. That will make it more viable as a "real" currency in the long term, which is good. Unfortunately it will also make it more certain that it will be very valuable in the future, which will make it more attractive to hoard it. It's still much better than hoarding if you want to make bitcoins live on, though.

[FreeMoney]

Can we discuss saving vs hoarding here?

[Jixtreme]

Can we discuss saving vs hoarding here?

Have you been on the internet long? 

anyway...

Hoarders will become our biggest spenders once BTC is back on the up and up. The tricky part is getting there...

[FreeMoney]

Seriously someone point out a difference between saving and hoarding please. I'm at a loss.

[adamstgBit]

Seriously someone point out a difference between saving and hoarding please. I'm at a loss.

i guess, one could say:

Saving is when you buy btc only to spend them in a few months..

VS

Hoarding is buying BTC as a store of value. (very risky, but potentially very rewarding.)


I'm hoarding about 30 bitcoins.

[Jixtreme]

Seriously someone point out a difference between saving and hoarding please. I'm at a loss.

Pick up a dictionary.

[nighteyes]

Seriously someone point out a difference between saving and hoarding please. I'm at a loss.

Pick up a dictionary.

http://blog.mises.org/5763/saving-versus-hoarding/

hehehe, whats MtGox's email address again?