I think you are not entirely wrong to think that. But it's a fallacy to think that you have more incentive to hold than to spend just because it's fixed supply. If all of your money is held in Bitcoin, it's easier to understand. I don't have dollars... I still have to eat, I still desire to build things. That means I still have to spend money. Doesn't matter what kind it is. Spending is spending. What it really create disincentive for is malinvestment. You are more careful with spending. You still spend. You just make better investments with that money.
Spending is spending. Contrary to popular belief, saving is high time preference. In order to grow wealth, I mean really grow wealth, you make investment that have a return on those investments. People that make good investments will outperform those that hodl in a world entirely on a Bitcoin standard.
You are right that it's circulation will be hampered by its massive increase in purchase power. But it's not the fixed nature that's the cause. It's because Bitcoin has to monetize from zero. It's hard to know where you are in the S curve. It also doesn't matter when you no longer have any other form of money. People still want to just do things.
OceanSlim
npub1zm…v7f60
2025-05-07 12:28:20
in reply to nevent1q…54x7
Author Public Key
npub1zmc6qyqdfnllhnzzxr5wpepfpnzcf8q6m3jdveflmgruqvd3qa9sjv7f60Published at
2025-05-07 12:28:20Event JSON
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"content": "I think you are not entirely wrong to think that. But it's a fallacy to think that you have more incentive to hold than to spend just because it's fixed supply. If all of your money is held in Bitcoin, it's easier to understand. I don't have dollars... I still have to eat, I still desire to build things. That means I still have to spend money. Doesn't matter what kind it is. Spending is spending. What it really create disincentive for is malinvestment. You are more careful with spending. You still spend. You just make better investments with that money. \n\nSpending is spending. Contrary to popular belief, saving is high time preference. In order to grow wealth, I mean really grow wealth, you make investment that have a return on those investments. People that make good investments will outperform those that hodl in a world entirely on a Bitcoin standard. \n\nYou are right that it's circulation will be hampered by its massive increase in purchase power. But it's not the fixed nature that's the cause. It's because Bitcoin has to monetize from zero. It's hard to know where you are in the S curve. It also doesn't matter when you no longer have any other form of money. People still want to just do things. ",
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