How long do you have to hold on to money before it's hoarding? A second? A minute? An hour? A year? The vast majority of money is hoarded because most people don't earn a dollar on one hand an immediately spend it on the other.
Deflation is something that happens to an economy; it can be a result of constrained supply of currency in the economy, but constrained supply of bitcoin now, which accounts for a very small share of the currency used in exchanges in any coherent economy isn't deflationary, even if the supply characteristics of bitcoin are such that it would be deflationary if it were a dominant currency.
> How long do you have to hold on to money before it's hoarding? A second? A minute? An hour? A year?
Probably best to say that any money held in cash is "hoarded", and characterize hoarding by degree rather than as a binary quantity.
> The vast majority of money is hoarded because most people don't earn a dollar on one hand an immediately spend it on the other.
People who deposit money in a bank (which amounts to a loan, even though it may be at an effective zero or, given fees charged by the institution, negative interest rate for some accounts) are not hoarding it. And, neither, for the most part, is the bank, who is turning around and investing/lending most of the funds deposited.
If people are cashing their paychecks and stuffing the money in their mattresses, then, yeah, they are hoarding it, but that's not all that typical.
This really isn't very complicated.
Yes, because how else are they going to buy weed, ecstacy, cocaine, illegal electronics, steroids or any other banned substances that form the backbone of the commodities people are actually purchasing with bitcoins. Have you ever been to the Silk Road site? I bet you haven't. Here's a hint: you won't be able to use your browser to go, so look up Tor.
Edit: For the noninformed who say "dollars?" There is a huge incentive to use Bitcoins on Tornet sites like Silk Road to trade black market goods. This is because Bitcoins can cross international borders and are encrypted, are not subject to bank regulations, etc. They are essentially difficult for Law Enforcement Agencies to trace, but not impossible.
With dollars?
Did you know that prices in Silk Road are pegged to USD? As it should. Either way, that's called argument ad populum. "And yet despite no revenue sources people are buying dotcom stocks"...
> How long do you have to hold on to money before it's hoarding?
This is called moving the goalposts. It's also a stupid argument in many other ways, by the way, and you should know better. "Evolution does not happen because not every single organism gives birth to one of another species"...