What should we focus on more? Demand or Supply?

[SkyFlakes]

In the case or world of cryptocurrency, demand is the thing that should be given by attention. This is because when we talk about supply, it is about the coins currently in the market. There's a lot of coins that can be seen. But the problem is that there's a little demand over those coin. Thus, this would further prove that what we should focus now is with the demand of everyone to the coin s rather than the supply of the coins itself that can be found in the market.

[1713855295]

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[Ilegendph]

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.

Well of course, it is because of the regulating bodies that prevents hoarding the primary needs of people like food. Long way back, when government is not aware of this kind of scheme. The rich takes the advantage when there is a shortage in food, they buy food at low prices then hoard it, of course the effect would make the price of the at the market to be higher. Because of this scheme, poor becomes poorer and the rich becomes richer. Thanks to the government and the regulating agency, we would not experience this kind of inhumane thing.

[Betwrong]

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 agree with the 80%/20% only I can't find much places where BTC is accepted among the services I want. It's a pity that as early as in 2016 Netflix CFO David Wells was talking about the possibility for Netflix to accept Bitcoin payments and yet they still don't accept BTC. It's easier to do if you live in Switzerland where you pay your utility bills and pay for other government services with Bitcoin in some cantons. Let's hope all countries will become Switzerland in that regard somewhere in the future.

[glorybtc]

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 agree with you, I think if the use of bitcoin as a means of payment is expanding, the number of circulation of bitcoin will increase so that the value of bitcoin will also increase

[bintangkejoraku]

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 >    

bitcoin needs more people like that, most people panic when prices drop slightly. for fear of falling prices they end up selling their bitcoin, but that only worsens the situation.

[Kprawn]

It is easier said than done, because a lot of people would be very reluctant to spend any bitcoins when the price is very low.

Since 2017 a lot of speculators have started to invest in Bitcoin and their sole purpose is to maximize their profits. They could

care less about merchant adoption and even considering spending some of their coins. We should focus more on a 50/50

percentage split in our efforts to grow demand and also to limit the supply. Now, I am not saying spending 50% of your

coins, but rather focussing more on spreading Bitcoin awareness. 

[wantjokull]

Off course, for any asset when there is huge demand despite of the supply you can say that it will always grow in its value and thus may get itself to higher levels. In crypto currency demand and supply surely plays vital role in deciding the prices. Though the speculators say that the prices will rise over the time as supply will keep decreasing then also I believe it will take huge time. Because the use is not even that much higher currently as it should have been. The use when will increase in the future then supply will also go limited as well as demand will also rise, so it would be multi fold changes.

[tepakpak]

Obviously, demand is very active in the market because it is the key to running a product. just like crypto, demand will increase the price value, the strategy of using it as a payment instrument is a good thing.

[jaysabi]

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 are far too many bitcoins still being produced for any type of hoarding to constrain supply in any meaningful or measurable way. And you can't artificially create demand for bitcoin. The hype drove the insane demand we saw at the end of 2017 which in turn pushed the price up to the insane levels we saw around $19,000. That was a natural occurrence of the hype driving the awareness and causing people to FOMO into crypto. That's not sustainable, so even if you could replicate that (which I don't believe is possible), it wouldn't do anything but create bubbles. The bubble bursting is why the price is currently languishing. Everybody remembers the hype and that those prices couldn't be trusted to last, so who would want to be buying now without any trust that the price will hold? There's very little spending of bitcoins going on. People are speculating to get rich in USD. There's actually very little comparative interest in crypto as a usable currency.

[Irvinn]

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.

Of course, the net accumulation of virtually all the bitcoins will lead to nothing good. Bitcoin must first of all work as a payment system, as it was conceived. If the situation continues in the same way, it can very badly end for bitcoin: it will grow in price until one day completely collapses in price.

[cellard]

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.

[harizen]

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

Giving them a simple encouragement that they must add bitcoin to their payment method is not enough. It requires massive request. As soon as they don't understand how volatile crypto is, no way they can just accept bitcoin as direct payment. Local merchants must maintain a profit day by day so without understanding fully how bitcoin price moves, they will never risks their profits.

And since we are talking about "local" merchants here, the community around is one of the factors too. If bitcoin is not that popular on their area why they should add bitcoin as payment method? That's why they need to understand all things first about crypto in order to take the risks.

But prior to that, it really needs a serious global push for other countries to follow.

[darkangel11]

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?

I don't understand why you came to the conclusion that hoarders want to increase value by limiting the supply. There's a lot of coins being generated every day and that additional supply has to go somewhere. there have to be buyers every day for the price to remain at the same level. Without a constant demand hoarding won't make anyone rich, on the contrary, they'll be getting poorer every day, even faster than they would holding inflationary fiat money.
Most holders know about it and they're holding because they believe in BTC.

[shield132]

We should always focus on Demand because when there is demand, there is always supply. (well supply has to be created but what I said is like a gold rule). This is generally but if we talk about bitcoin, there are a lot of factors which affect it's price. Firstly it's mining profitability, if we aren't able to profit while mining, this will cause rise in price to make it profitable. When someone owns most % of supply, he/she can affect it's price a lot.

[Ucy]

Hoarding is not a thing n Bitcoin World to be honest. People are holding or saving their Bitcoins, not hoarding them and it is very much encouraged because it helps the network. Holding  makes Bitcoin more valuable and less affected by inflation. This is what we all want, right?

Bitcoin is not commodity by the way— Holding does not cause the shortage of Bitcoin. Hoarding is mostly applicable to commodity. The so called hoarding of Bitcoin is very much encouraged.

[hugeblack]

I agree with you, but I think you forgot the critical point about transactions fees.
If the stores start to accept ]Bitcoin we will notice massive spam of useless transactions "buy coffee and drinks" and thus the high confirmation times and fees.
After solving the Bitcoin problem "scalability", we can talk about daily spending and shop acceptance. Now, raising awareness of using this technology in international transfers rather than well-known bank transfer methods.

[Harrisonimo]

This is only a means to achieving a goal for the market uplifting. The main expectation that will really drive the cryptocurrency market now is the impact the ETF will have when allowed. The other suggestions are mere speculations and may not work or take reasonable effect as the market knows what it needs at this time which is the ETF!

[hahay]

Obviously most people will only hold their bitcoin supply in the event of a crash, if demand increases then prices will increase again too, so I don't think it would hurt to keep the supply when a crash occurs, because if someday there is good news about crypto, then this will lead to increased demand for bitcoin and the market will recover.

[Rath_]

Without a constant demand hoarding won't make anyone rich, on the contrary, they'll be getting poorer every day, even faster than they would holding inflationary fiat money.
Most holders know about it and they're holding because they believe in BTC.

The problem here is that most holders treat Bitcoin only as a long-term investment or store of value. I am not denying that they are right but they forget that Bitcoin can be used as a currency. Many merchants stopped accepting Bitcoin because of high transaction fees. The transactions fees are now low (1 sat/vbyte) and they might become even lower in the future (Bitcoin Core 0.18 -> 0.2 sat/vbyte) so there is no reason why holders would not spend at least some of their coins. The more people spend their coins, the more merchants decide to accept Bitcoin.

[danherbias07]

Very true.

It should not just be over by hodling it.
Invite others although there is much negativity about crypto currencies. Just making them aware might give them that spark to look at it deeply.
With that, they may see the positive feature of crypto currencies specially bitcoin.

It would be lovely if it happens. But some are discouraged because they are rejected or worse they are being mocked by those traditional fial believers.