Appreciate the question, John. I think it stems directly from the multi-year indoctrination of "HODL" as the ultimate and only philosophy. The community has been deeply conditioned with a strict "neve...
Yeah we never really predicted HODL culture would get us here, it’s become a double edged sword. But I only think this is a part of the problem.
I think if it was convenient enough to spend Bitcoin, people would do it more. Ignoring the chicken and egg problem of not enough merchants vs not enough Bitcoin spenders, there isn’t a direct incentive to spending Bitcoin as there is to saving it.
For almost all of Bitcoin’s history, HODLing was guaranteed to work with a 3-4 year horizon. As a saving mechanism, there was clear evidence of success. And HODLing is physically just easier, you buy and do nothing.
Spending much more complicated. If your cost basis isn’t higher (enough) than today’s BTC price, you’re losing money on each purchase. Spend & replace increases your costs basis which isn’t a great feeling unless your conviction is already high.
I think if price keeps consistently going up, spending will make more sense too as circular economies organically grow. But as another person commented here, circular economies aren’t gonna be a first world thing anytime soon. So it feels like we’re just relying mostly on conviction for spending these days to boost velocity.
I think if it was convenient enough to spend Bitcoin, people would do it more. Ignoring the chicken and egg problem of not enough merchants vs not enough Bitcoin spenders, there isn’t a direct incentive to spending Bitcoin as there is to saving it.
For almost all of Bitcoin’s history, HODLing was guaranteed to work with a 3-4 year horizon. As a saving mechanism, there was clear evidence of success. And HODLing is physically just easier, you buy and do nothing.
Spending much more complicated. If your cost basis isn’t higher (enough) than today’s BTC price, you’re losing money on each purchase. Spend & replace increases your costs basis which isn’t a great feeling unless your conviction is already high.
I think if price keeps consistently going up, spending will make more sense too as circular economies organically grow. But as another person commented here, circular economies aren’t gonna be a first world thing anytime soon. So it feels like we’re just relying mostly on conviction for spending these days to boost velocity.
2❤️1
