If the value of bitcoin as speculative asset is going to rise, then it is best to not spend it, but to hoard it. If everyone is hoarding bitcoin how can you use it to buy things?
If it is a currency then it needs to have a stable value. If the value stabilizes, then no one will want to invest in it. Since it does not have any "real" commodity value it would then death spiral. I don't know how you square this circle.
> If everyone is hoarding bitcoin how can you use it to buy things?
When people need something more than bitcoin, they'll trade for it. Food, shelter, medicine, etc. People will certainly trade for these things. But maybe they'll pass on replacing a phone that's only 2 years old or getting an xbox or 6 pack of beer.
It's fascinating to me that people say currency can't be deflationary or people will hoard it. You're so against people hoarding, i.e. saving money? People act like the economy will stop, but no matter how deflationary a currency is, people will still trade it for needs like food and shelter.
The problem with this kind of system: It's not just about saving. What's actually happening is those who have saved more are accumulating even more money by doing nothing, and everyone else who needs to spend it to buy food and shelter is suddenly losing more and more of their money. When it starts happening at a faster rate than the economy is producing actual value then you hit hyperdeflation and the economy spirals.
> When speculative investing involves the purchase of a foreign currency, it is known as currency speculation. In this scenario, an investor buys a currency in an effort to later sell that currency at an appreciated rate, as opposed to an investor who buys a currency in order to pay for an import or to finance a foreign investment.
BTC has been subject to massive swings. Just looking at CoinDesk, it was easy to find a time where it doubled in value in less than a month. Why would any reasonable person spend that sort asset?
I think the dynamics of the market are as important as the technical features that some digital currency has.