What should we focus on more? Demand or Supply?

[Kakmakr]

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 >    

[bobo012]

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 good thing about bitcoin is that you can easily spend if you want, while maintaining the same values as gold. With gold you cant spend easily if you want. Both storage and spending is good for bitcoin as both means it is getting more valuable. We will see what happens

[damberg]

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 >    

I understand your call for broader Bitcoin adoption and more intensive spending. Although I completely agree with you, I don't think it would impact the price significantly (in a hypothetical scenario of 80% hoarding and 20% spending) because majority of regular shopper will not convert fiat to Bitcoin if they can pay with fiat itself with lower transaction costs. 

[jseverson]

I see where you're coming from, but I don't think HODLers' primary objective for HODLing is to cut off supply. Most of them just want their coins' value to grow and that's it. HODLIng, in a way, could even raise demand by attracting even more new HODLers courtesy of increasing prices lol. But yeah that's simply unsustainable.

I understand your call for broader Bitcoin adoption and more intensive spending. Although I completely agree with you, I don't think it would impact the price significantly (in a hypothetical scenario of 80% hoarding and 20% spending) because majority of regular shopper will not convert fiat to Bitcoin if they can pay with fiat itself with lower transaction costs.  

To be fair, Bitcoin payment processors often charge less in fees than credit cards, so there's a legitimate case for merchants to accept Bitcoin. Customers themselves won't really feel the difference though, because credit card fees are often already integrated with the price of products. Maybe it would be more effective if we encouraged businesses to accept Bitcoin rather than encouraging end users to spend them lol.

[Torontello]

In the real world as soon as the value of a currency is going to increase (or expected) its holders are trying to hold it (not to spend) and visa verse.
I think that merchants will start accepting BTC only when their main expenditures are nominated on BTC (rent, salaries, loans+interests).

[TRUSTIES]

Bitcoin installment processors regularly charge less in expenses than Visas, so there's a true blue case for traders to acknowledge Bitcoin. Clients themselves won't generally feel the distinction however, on the grounds that Visa charges are frequently effectively incorporated with the cost of items. Perhaps it would be more powerful on the off chance that we urged organizations to acknowledge Bitcoin instead of urging end clients to spend them

[MilkyMilton]

I've been a student of Economics for some time now. Not in an academic setting by the way. But I have undertaken studies of Economics individually. In this time, I have never seen a case where hoarding any product has worked for good. It always end up more like a lose-lose situation. And this is a strategy only amateurs engage. I totally agree with the poster. The only way to improve Bitcoin prices is to create awareness to induce the public's interest. In other words, only increased demand ever benefits a particular market.

[bob123]

Maybe it would be more effective if we encouraged businesses to accept Bitcoin rather than encouraging end users to spend them lol.

Well, IMO encouraged users who want to actively use and spend bitcoins at a store, can have an influence on the owner of the store to accept BTC (to encourage businesses).
But encouraged businesses which accept BTC don't have such a big influence on their customer to pay with BTC. Most of them would probably stick with their credit card (regardless of a "BTC Accepted Here" - sticker).

A user base (and new user who want to actively use BTC as a currency) are thriving the adoption forwards. Not businesses accepting it as a payment option per se.

[Janation]

I agree with this though I do not know what will we do to increase their awareness to these cryptocurrencies especially Bitcoin since a lot of online sellers and merchants know what Bitcoin is. I don't encourage people who sell on markets since in our country, a lot of people are being scammed using the name of Bitcoin so I don't think they will be doing it.

There are a lot of other alternatives to Bitcoin or cryptocurrency payments that is better, efficient and cheap though not anonymous. I guess Bitcoin will stay as it is since people will just be continuing what they are doing in the past, hold it and sell it in the time that it's price increases. Let's just stick in that for the mean time, that time might come but not only Bitcoin will be in this talk.

[yugyug]

We see a big potential for bitcoin as the next thing of digital currency but the draw back is that it can not be do a faster transaction confirmation or in other words low transaction speed compared to VISA and for its still in infancy until it is bloom bitcoin is still not a merchant friendly like for convenience store and grocery stores some HODLers are hoarding the bitcoin until the full blown hi speed network will be fully implemented and that's the time the flow of supply and demand is quite stable.

[Btcepenbob]

I think if we are going to make the economic subject as the baseline then I think demand will be the one who could drive the market to have a huge recovery. This movement will be brought by an increasing demand.

[Neraj Evad]

In cryptocurrency ,we should be more focus on tbe demand ,because when we talk of supply there are many supply of coins flooding in the market and this many coins ,would need a much demand from the customers and investors to invests in this much supply of coins in the market.

[Hydrogen]

I'm not certain on the demand versus supply dichotomy. Expanding bitcoin's userbase and the amount of information and knowledge publicly available on the topic could be a goal worth pursuing for HODL'ers and those interested in seeing crypto currencies grow beyond their current horizons. The further into the public consciousness bitcoin and crypto are able to expand, the more peoples eyes might be opened to potential of innovation and progress over current era financial institutions.

There are video clips on youtube where people try to give away a chunk of gold or silver to people on the street for free and no one accepts it. They wouldn't begin to know what to do with it. Where to redeem it for fiat. What the laws and regulations are surrounding it. And so they avoid it completely. I think bitcoin and crypto suffers from a similar negative precedent where there's a complete lack of information and awareness on it which causes people to avoid it like the plague.

That could be the area to focus on. We need youtubers and social media people to post clips of themselves using bitcoin and crypto. And to discuss their experiences and the current state of things in the sector. That's probably the best way to get the word out there imo.

[Coin-1]

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

I think that Bitcoin is likely an investment asset. For example, the Lightning Network technology can be a solution for merchants who accept Bitcoin. The inflation of Bitcoin is still significant (12.5 BTC for each mined block), so the new coins come into circulation every hour.

Of course, high demand with low supply will skyrocket the price of Bitcoin "to the moon", and HODLERS wait for this. In my opinion, Bitcoin should be a reserve crypto currency without instant payments.

[Harlot]

From what I remembered the merchants are the ones who pulled out on accepting Bitcoin because of the price drop that happened in Mid-December to January, the price drop of course could simply mean that the supply of the whales is being sold in the market already which means the supply is increasing but the effect you wanted is obviously not what most merchants wanted, what they see is a falling payment method that if they accepted would give them a lot of financial losses. So I don't think that not hoarding your coins would be a solution for this one.

[talenah kotang]

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>

Yes, that's right, so we always contribute to the sustainability of the bitcoin market and prices will stabilize. Maybe a method like this must be applied and will attract new investors.

[jseverson]

Maybe it would be more effective if we encouraged businesses to accept Bitcoin rather than encouraging end users to spend them lol.

Well, IMO encouraged users who want to actively use and spend bitcoins at a store, can have an influence on the owner of the store to accept BTC (to encourage businesses).
But encouraged businesses which accept BTC don't have such a big influence on their customer to pay with BTC. Most of them would probably stick with their credit card (regardless of a "BTC Accepted Here" - sticker).

A user base (and new user who want to actively use BTC as a currency) are thriving the adoption forwards. Not businesses accepting it as a payment option per se.

Yeah, but then it becomes a chicken-and-egg scenario when you consider that regular BTC users themselves won't bother paying with Bitcoin if they're not getting anything out of it. They're HODLing because there's financial incentive for them to do so, and spending doesn't even net them a discount. We could easily say that they'd be willing to spend because of ideological reasons, but we all know a big subset of the community is only here for the money.

Businesses, on the other hand, have the immediate incentive of higher profits (1% transaction fee vs 2%~5%), and they get to attract a new demographic to boot. More businesses that accept Bitcoin = more opportunities for Bitcoin to be spent. It might be easier for us, the consumers, to nudge them towards that direction.

Then again, if this problem were as simple as our discussion, more people would be spending their coins and more businesses will be accepting them lol.

[zhanyiguai261315]

The price of cryptocurrency is also determined by the relationship between supply and demand.
In the case of a small amount of liquidity, if good news is good, it will lead to an increase in demand, which will quickly push up the price of the currency. If there is a large amount of liquidity, even if the demand is large, the price increase of the currency is limited.

[Eijrafarm]

Both of this must be put in focus. This is the basic fundamental the all people must be aware of since it is a direct contract with any forms of sales where in we must consider both of this two to establish a good market.

[Wenmanong]

People must be aware how the market goes I think we have to focus in both, we have to know how manage between the supply and demand.