It’s interesting that in the Bitcoin world, the desire to save is called “hoarding”. Conversely, when people put money into a savings account with their bank, we don’t usually call it hoarding.
There are many enthusiastic “Bitcoiners” who preach spending as a way to drive adoption. But that is not the way I see it, not from the beginning, and not now.
What drives adoption is Bitcoin’s price. With an ever-increasing price, Bitcoin adoption is a given. And when people saving Bitcoin finally get around to spending it (which they obviously will at some time), it will be because they value whatever they are spending it on more than the bitcoins themselves.
When I consider my own Bitcoin saving strategy, I already have a plan as to when and why I would spend it – in both the near and long term. In other words, I certainly plan to spend my bitcoins, but at a time and on terms that will benefit me the most.
Think of it this way. If you were to purchase 10 bitcoins and just turn around and spend them, would you consider that a rational economic action – especially if you had good reason to believe they would triple in value in one year’s time?
I think the only people who would consider the spending option in that scenario are those who have so much money that a mere 10 bitcoins is nothing to them. But for those wanting to get ahead financially, the temptation to save those 10 bitcoins would be considerable.
If you’ve been pondering this conundrum – to spend or save Bitcoin – then have a read of this interesting article:
I’m Hoarding Bitcoins, And No You Can’t Have Any
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