Yes, there will be (at some point) a downward force on the value of Bitcoin due to hoarding. But that will not be the only force. At some point, it will seem th

Yes, there will be (at some point) a downward force on the value of Bitcoin due to hoarding. But that will not be the only force. At some point, it will seem that its probably not going to rocket upward any more, and it might fall a little and then people start actually using it. Also- its important to remember that there are relatively few places to 'use' it now compared to most other currencies. I cannot pay my rent, groceries, etc.... I think to trying to sort it into neat categories of 'investment' or 'currency' is a bit flawed. Its a bit of both. Gold (at least to some degree) was used as a currency at various points in history, but now paying with gold doubloons is difficult for most transactions. The hoarding of gold makes it deflationary as well, but doesn't prevent it from being traded frequently as well (well, at least futures of it on the exchanges). Gold backed dollars at one point were theoretically limited in number as well. Another claim against Bitcoin is the fact that it isn't "backed by anything", but neither is gold. Its value is what we assign to it as a market. Aside from industrial processes, the inherent value of gold or diamonds is very low. I don't think Bitcoin is perfect. I'm glad I bought a handful a few months ago. But some of the 'flaws' that people find aren't as much as flaws as features. One of the things that I do love about Bitcoin is that it isn't a theory- its happening. We could talk all day about the things that are supposed to happen with it from a variety of perspectives, but the experiment is being actively run in a real market which is challenging the perspectives of 'what might happen if...' with what's actually happening. If we were talking about USD as a new concept, we could write tomes on the 'flaws' of it as a currency. It has nothing backing it. It can be infinitely created at will. A private entity (federal reserve) controls a huge amount of policy. It can be lost, destroyed, stolen. Political forces of a single government can have massive impact on it. It is hugely regulated, and can be relatively easily tracked in its system. Yet, it largely works.