so..when hoarders realize by not allowing bitcoins to circulate, they will have no worth, some will start to sell their holdings since it becomes obvious they a

so..when hoarders realize by not allowing bitcoins to circulate, they will have no worth, some will start to sell their holdings since it becomes obvious they are not going to continue appreciating. This causes circulation to increase again, which will make the currency more valuable again. The point is, people are just assuming that both extremes happen--hoarders hoard forever, despite the currency going to zero. In reality, there is a feedback loop and an equilibrium will be reached.