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> On the other hand, these bitcoins that are hoarded in a bunker are extracted from the economy as long as they are there. These bitcoins were bought with cash
by 21 8y ago
> On the other hand, these bitcoins that are hoarded in a bunker are extracted from the economy as long as they are there.
These bitcoins were bought with cash, which is now sitting in the sellers "savings" account. The dollars did not disappear in thin air.
- lmm 8y agoThose dollars continue to circulate, contributing to a functional dollar economy. Those bitcoins don't, so we don't have a functional bitcoin economy.
- 21 8y agoAt some point, after the last central bank and Buffet bought bitcoin reserves, it will stop appreciating in value. Then it can start to circulate.
- lmm 8y agoBut what bitcoin owner is going to be willing to sell up and lock in their losses? They'll keep HODLing to the end, with only the occasional sale (to someone else in the ever-shrinking circle of people who care about bitcoin) to meet immediate needs.