What should we focus on more? Demand or Supply?

[suzanne5223]

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price. <mostly speculators>

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them. <No matter how low the price is>

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins. <So when the price increase, you will not have regrets that you spend those coins>

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption <Merchants & Bitcoin users >   

There is no incentive for most people to use bitcoin to make payments that could have been made perfectly fine with fiat, without losing your bitcoin position.

Why would people want to use bitcoin, something scarce and limited in amount, to buy stuff, stuff which could be perfectly bought with fiat, so you lose the easy money (fiat) while saving up the hard money (bitcoin)?

I don't see bitcoin being integrated within economic activity anytime soon. There would need to be a catalyst for that, like the governments banning physical cash so people are forced to look for alternatives, and bitcoin would be the best one, so there we would see a rise in goods and services being sold for bitcoin under the radar.

But until then most people are simply going to keep using bitcoin as a better gold, not as a fiat replacement. You don't see people paying with gold in shops, yet gold is worth 7+ trillion. So that's a potential 7 trillion dollar market there without necessarily being used as a common way to make payments. Will the day of common BTC payments come? only the future will tell.

Merchants should create the incentive, by offering "discounts" to people who pays with bitcoins. Why? ..because the merchant does not have to deal with large amounts of cash or expensive credit card transaction fees. The savings can be used to fund these discounts. 

The user will obviously opt to use Bitcoin, because these discounts does not apply when you pay with any other payment method.

You're right what you said about the merchant. Despite the fact that bitcoin payment will ease the merchant stress/cost in  terms of transaction I don't see the merchant giving discount to their customers unless they make use of crypto project like mozo or other loyalty offer project.

[Mjadon15]

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price. <mostly speculators>

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them. <No matter how low the price is>

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins. <So when the price increase, you will not have regrets that you spend those coins>

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption <Merchants & Bitcoin users >    

The game has to be played wisely. Economics has to be applied at full potential. Bitcoin is at the fore front of the new generational currencies know as cryptocurrency, not yet fully accepted generally, but the acceptance rate is still massively encouraging. Demand and Supply, as it applies to Fiat currencies like Dollars and Pounds, so also is it with Crypto - Currencies. Just that the whole world is already used to the FIAT currencies and they are generally accepted.

Bitcoin now has to be handled with all principles of economics backing Demand and Supply so as to control its market volume and price. This should be so,  so that the coin will be acceptable to all like Fiat Currencies and at the same time, the value of the coin will be retained.

[Mjadon15]

Unfortunately, people ignorantly push the supply of Bitcoin into the market by selling and dumping. Unknowing to them this won't help the price of Bitcoin. These coins needs to be valued. They need to be wanted. It's good Cryptocurrency has handed onto us Bitcoin and other Crypto-coins to manage by ourselves, that doesn't mean we should abuse these coins by transacting anyhow with them. Probably, there should be some formal education or seminar on how to handle Bitcoin. Also, if there could be some regulations guiding selling and buying, maybe this will further help BITCOIN's price.

[Mjadon15]

Very important to drop this too. We need to understnad  that the value of something is not the same as its price; value is what people perceive a product is worth, while price is what they pay for it. Even so, value and price go hand in hand: the price of something is directly related to its value and vice versa.

The market value of Bitcoin; that is, the money that people are willing to pay for it, follows the same old basic demand and supply rule: a high demand increases its price and a low demand decreases it.

According to an article in the Economist, the increasing trend in the price of Bitcoin is what drives people to invest in it.
People are investing because they believe that, following the trend so far, they would be able to sell their Bitcoins for a much higher price in the future, which the article argues is a perfect example of the greater-fool theory.

You can read more in the  Economist article.

[jak3]

just imagine everyone starts to have demand on bitcoin then who is really gonna supply them. And if no ones do supply any bitcoins they the price is not gonna rise instead it will drop down even further. To Increase the Bitcoin price we have to increase the demand and decrease the supply just enough to make everyone keep using it. you can not ask 10000$ for 0.1btc that will not work.

[Escf4]

In this cryptocurrency world wherein there are many new introduction and launching of coins in the ICO projects ,which add the supply of tokens to the market, so we must be focusing on the demand of this coins ,because we can not deny that supplies os coins now are flooding in the market, so we will promote on the demand in the market place.

[Astra2127]

We should focus on both supply and demand because those 2 components are important in our economy. It should be balance. Remember that supply and demand works together and connected.

[adzino]

Holding is not like cutting off the supplies. It is more like limiting the supplies. Even if we hold off the coins, new coins are generated every day. The holding increases the value of the coins, and as usual more people are attracted towards investment as they see the price increase. So eventually the price will start increasing more, that is more demand and the supply won't be reduced since fractions of the coins will carry more value than before which people will be buying (what I mean is that people will then focus on investing on fractions of coin rather than one whole coin). The more we dump, the lesser the value will be.

[Zooplus]

I think we need to focus on increasing the demand as we need mass adoption to increase the flowing of transactions. The more the flow this can attract more people to use Bitcoin as for digital payments.

Yes you are right, the price will only increase if the demand in the market increase so people should invest even more in order for the volume in the market to drop.

Agreed.If the demand for crypto increases,the price will definitely increase even reaching to a new heights instead.Hopefully,mass adoption will soon to take place since digital currencies are already making it popularity wider thus leaving marks to the people.

[Eigig]

As of now that the tokens ansd altcoins in the market now is very plenty then their will be much supply in the market, so our focus now is to promote the the demand of this supply of coins ,so that to achieved a balance business in cryptocurrency.

[Oasisman]

OP has point on the idea of how to increase the demand, and I have to agree with the idea. But, hoarding coins is another idea of attracting more investors to the market, as hodling will increase the price (Bitcoin for example.)  So, either of the two could be a way of executing more demand. What I like about the OP's idea is, the development for mass adaption of cryptocurrency. We need to maximize the use of Bitcoin, in a way of promoting and encouraging merchants to accept Bitcoin as a payment option.

[marcbitcoins]

I see no difference between the two because both are necessary to maintain the balance for the better and successful market performance of the coin. It is good to attract more people to invest but if there is no strong holders but more sellers then attracting more people will become useless and the same situation if there is low supply with a high demand because the market price will be nailed to its latest value due to the supply circulation movement was limited in which no one want to trade but just keep on holding.

[Vaculin]

We should focus on both supply and demand because those 2 components are important in our economy. It should be balance. Remember that supply and demand works together and connected.

I agree.We should promote to increase its demand and supply because they should be working hand in hand.Because it's still useless if there will be more demands already but the supply is still less.Still crypto would not be that essential.

[Sled]

The demand is what we should focus more because if we will focus on supply then it will just overwhelm the demand and if the demand cannot keep it up with the supply then the price of the cryptocurrency will just fall and that is not a good thing for investors or holders to see that the price is falling down so it is best to focus in demand.

[maculeth]

actually both are important. but for one reason, supply is more important for the ongoing economy. because if it runs out of supply, the economy will fall apart.

[goaldigger]

We should be focusing more on demand because its the basis of everything. If the demand of cryptocurrency increases people would definitely make a way to supply them using altcoins. If the people demnd it, the government would also legalize it in return, plus oversupply with less demand doesnt makes sense.

[MMysterious]

I think we should focus on demand, simply because the higher the demand of a certain product the higher the value of the product will go. Even we have limited or unlimited supply if the demand is not their the price will not go up. for me, Demand is the deciding factor of a price action. Just like bitcoin, we have a limited amount of bitcoin in the market and it has a total of 21 million all in all. its a good thing that we have limited supply but its the demand of the people to the bitcoin that gives a big value to it.

[beatzcoin123]

I see a lot of people that are hoarding 100% of their bitcoins, because they believe cutting off the supply, would be enough to increase the price. <mostly speculators>

Would it not be better, if we increased the demand by increasing Bitcoin awareness and convincing more merchants to offer Bitcoin payments?

A 100% hoarding strategy is more harmful, because it cancels all the good work that was done to get merchants to accept Bitcoin as a payment option. A merchant will stop accepting Bitcoin, if their is no demand or transactions being generated for their business from the Bitcoin payment side.

We should actively encourage local merchants to start accepting bitcoins and then we should start supporting them. <No matter how low the price is>

Just buy back the bitcoins that you spend and you will be fine or use money that you would not have hoarded and buy the goods or service with bitcoins. <So when the price increase, you will not have regrets that you spend those coins>

Adopt a 80% hoarding and 20% spending strategy and we will see a massive increase in Bitcoin adoption <Merchants & Bitcoin users >    

the wisest decision now is to demand for more btc, demand and stock as much as you can, the future is bright, positive publicity about bitcoin should be carried out to encourage people to come and invest in bitcoin.

[andriarto]

We should be focusing more on demand because its the basis of everything. If the demand of cryptocurrency increases people would definitely make a way to supply them using altcoins. If the people demnd it, the government would also legalize it in return, plus oversupply with less demand doesnt makes sense.

right, high demand will have a positive effect on the price of bitcoin. with the least number of sellers, the buyer will dare to buy a high price, so that if it continues, the price will be higher, and in accordance with the expectations of all of us

[MMS2017]

Demand should be the main factor behind the bitcoin price rise and normally people do trade during these days i am happy when the price rise and then i hold my bitcoin for further investment now i am investing in ICO which is also very profitable way and if you have multiple coins then you can trade easily.