Is HODLing Flawed?

I often see this argument brought up in bitcoin debates’, and would love to hear peoples take on it:

For bitcoin to ever truly be adopted into the mainstream, don’t we need to be encouraging the use of bitcoin as a currency, rather than just accumulating it as an investment?

Good Question!

In reality, there is no such thing as perfect distribution model. Even with traditional currencies; the distribution is extremely skewed because of ‘fractional reserve lending’ which gives banks the power to essentially ‘create money’ out of thin air.

It depend’s what you want to gain from Bitcoin; If you distributed the 21 million bitcoins equally to every person on the planet, each person would get about 0.003 BTC.

Distribution of wealth does not seem to be a problem right now. Whatever new btc from mining will usually end up in the free market because miners will need to sell a portion to cover their overhead cost.

Furthermore, with current difficulty that keeps increasing, it’s hard for a single node to grab all the btc, thus wealth distribution at this stage is not a major issue.

And at the very least it’s better than banks being able to create $10,000 from $1,000, and have all that money on their books.

1 Like