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Are you familiar with the Tragedy of the Commons? "Oh, well of course it's important to keep bitcoins circulating... but it won't hurt anything if I hoard my co
by jff 15y ago
Are you familiar with the Tragedy of the Commons? "Oh, well of course it's important to keep bitcoins circulating... but it won't hurt anything if I hoard my coins, I'm just one person! Besides, I know there are other people hoarding theirs, so I might as well do the same!"
- p1980 15y agoyou miss a point--there will be certain players whose opportunity cost will be higher than waiting for others to liquidate theirs. Those people will liquidate theirs for USD to do productive investment that will earn returns far beyond just playing chicken with the rest of the people to see who will circulate theirs first. So it's not a tragedy of the commons situation--it will make perfect economic sense for certain people, if the hoarding gets too extreme, to change their currency for USD or other assets.