There's a reason why a currency that is rapidly appreciating in value encourages hoarding. It's not a fallacy - if you have reason to believe your currency will

There's a reason why a currency that is rapidly appreciating in value encourages hoarding. It's not a fallacy - if you have reason to believe your currency will be worth more tomorrow, you shouldn't spend it unless you absolutely have to. On the other hand it makes a lot of sense for vendors to accept BitCoin for the very same reason. If you are a vendor, why wouldn't you want to accept something that could appreciate in value 10-fold, 20-fold tomorrow? Unless, of course, you instantly convert it into dollars. This is why BitCoin will eventually be useful as a currency. This produces a network effect. More vendors will accept currency because it is so valuable so the currency will become more and more useful to consumers as time goes on. The value of being in the network is enough of a reason to join the network, until some plateau is reached. I don't think BitCoin will be particularly useful as a currency until it stabilizes in value. Until then from a consumer's perspective it is probably most used as an investment.