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Ah, the old and false "holding" argument.

2 million coins have changed hands in the last 30 days: http://bitcoinity.org/markets/list?currency=ALL&span=30d And that is just on these exchanges, not even counting other places of exchanges (coinbase which is probably the 2nd largest coins seller in the US), or purchases (Bitpay signed up 10 thousand vendors!), etc.

If this rate is kept, the entire existent volume of bitcoins, a bit less than 12 million, would change hands in the next 6 months.

It doesn't matter if it is 1 coin changing hands 12 million times, or 12 million coins changing hands one time each. Volume is volume. And it proves that not that many coins are being hoarded.




> It doesn't matter if it is 1 coin changing hands 12 million times, or 12 million coins changing hands one time each. Volume is volume.

Correct

> And it proves that not that many coins are being hoarded.

False. There's nothing in what you said to give any logical or empirical evidence that coins aren't being hoarded.

You'd be better off making the argument that it doesn't matter that they're being hoarded because the market is still liquid.


Strictly speaking, you are right. It is theoretically possible that 11,999,999 coins are hoarded, and only 1 coins is being exchanged many time.

I should have said simply that because the market is very liquid, it does not seem to suffer from hoarding and/or hoarding does not matter.


What you haven't shown is that the market is liquid when it comes to cashing out. Not too long ago someone dumped a bunch of coins at once and the market cratered in a matter of hours.

That's the only statistic that matters: how much USD-equivalent is being injected into/out of system. That tells you whether they're being hoarded.


"What you haven't shown is that the market is liquid when it comes to cashing out".

I showed it. When 2 million coins are changing hands per month, it means 2 millions coins are sold/"cashed out" (and 2 millions bought).

"That's the only statistic that matters: how much USD-equivalent is being injected into/out of system. That tells you whether they're being hoarded."

No. If the rate of transactions per user remains constant, and if the user base grows, you would see exactly that: more USD being injected in the system, than being taken out of it. This would not mean there is hoarding, but simply that the economy is growing (which is exactly what is happening). Again when you see a single Bitcoin payment processor like Bitpay reaching the "10 thousand vendors signed up" milestone, it is hard to reject the claim that the Bitcoin economy is growing...




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