ELI5 why we are hodling crypto instead of spending

I have just considered, why people still continue to hodl Bitcoin or any other altcoins (not meme coins) for life instead of creating an economy with it and start actually using it. I mean I know people in the dark side or some very small amounts of business are using it but I’m asking about the “gurus” that sells courses. Why they don’t teach the students to start to implement crypto in their small businesses and accept it as a payment all over the world. Bitcoin and ETH fees are high but maybe we could come up with a solution, init? If all the hodlers would use it globally in their daily life buying coffee literally in every small business,trust me Starbucks or Taco Bell will follow the same after a while. wouldn’t it be better to be recognized as global currency and increase its value to the real moon instead of being a gambling machine?

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45 thoughts on “ELI5 why we are hodling crypto instead of spending”

  1. I would be be spending it if more places accept it

    Currently I’m limited to selling it to fiat and loading it up on prepaid debit cards like CDC if I want to make a purchase

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  2. I would convert every dollar I have into it if it were accepted readily. I hate to say it but it’s level of complication is also a massive hurdle for a lot of the general population. Until transactions are simplified basically down to a credit card level, I have a hard time seeing mass adoption ever happening.

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  3. Delayed gratification. It’s that experiment with the kids in the marshmallows. You can have one marshmallow now, or have two marshmallows later

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  4. *WHY AM I HOLDING? I’LL TELL YOU WHY. It’s because I’m a bad trader and I KNOW I’M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro. Likewise the weak hands are like OH NO IT’S GOING DOWN I’M GONNA SELL he he he and then they’re like OH GOD MY ASSHOLE when the SMART traders who KNOW WHAT THE FUCK THEY’RE DOING buy back in but you know what? I’m not part of that group. When the traders buy back in I’m already part of the market capital so GUESS WHO YOU’RE CHEATING day traders NOT ME~! Those taunt threads saying “OHH YOU SHOULD HAVE SOLD” YEAH NO SHIT. NO SHIT I SHOULD HAVE SOLD. I SHOULD HAVE SOLD MOMENTS BEFORE EVERY SELL AND BOUGHT MOMENTS BEFORE EVERY BUY BUT YOU KNOW WHAT NOT EVERYBODY IS AS COOL AS YOU. You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell.*

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  5. There are 2 reasons :

    First there’s the negative feedback loop of : Nobody pays with crypto —> Business won’t go through the hassle (look at Steam and Shodan reasons for why they stop accepting crypto) of accepting just for a tiny percentage that would just pay with another way if crypto is not available —> there’s no place that accept crypto —> Nobody pays with crypto.

    Second no one currently buys crypto in the hope of using them someday as a regular currency. Everyone buys them in the hope that they ll be worth more later, nobody wants to be the guy who spend 10 BTC to buy a pizza.

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  6. Different coins, different functions. In the case of Bitcoin, it’s a different asset with multiple functions.

    Some will use it as if they just bought a piece of land, and some will use it as if the currency exchange is favourable.

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  7. People like me who are living in a third world country and want to come out of that type of country cryptocurrency is one of the good options and that’s why we are investing in the market.

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  8. The reason is simple people just want to be rich and there is nothing wrong with that mentality and I hope people will understand that this is one of the reason of cryptocurrency being famous.

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  9. Ill start spending when I know that the merchant that accepts it doesnt immediately turn around to sell it for dollars.

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  10. I finally love my crypto portfolio even if Iam down significantly. I might sell some of it some time, but Iam a hodler

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  11. Could it be that stonks have unlimited float and they can issue more stonk, fiat is debasing as the goverment prints, but there is like 21 mil btc.

    I don’t feel like spending nor do I want to trade, I want to hodl. And that’s my right to 🙂

    Remember the pizza man

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  12. When you achieve that the volatility will disappear and the guy whos been holding it forever makes all the money. Just like with fiat. Old money has almost all the money. The hodler doesnt help create the world you want, but they benefit from it when it happens in spite of them.

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  13. Good question. It wasn’t started as a store of value. It was started for p2p transactions. People got rich and changed things.

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  14. Because crypto is an asset, not a currency. The people holding crypto are hoping it will go up so they can sell for actual cash. Crypto doesn’t need mass adoption to become currency, fiat has to disappear.

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  15. If we are here for a good reason then I think investments would be one of those reasons because people really want to be wealthy and that’s why they are fighting here.

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  16. Because this is what happens when you don’t have inflation it ruins the economy. Because people aren’t willing to spend, Which means businessesdevelopers don’t get any customers, Which means people earn no money. Which means theres no incentive to open shops or build apps. Inflation is important to create a thriving economy or a thriving blockchain ecosystem. Its very basic economics. What Ethereum is doing with their ecosystem screams greed. Trying to make it deflationary will kill its long term growth all in pursuit to pump the price of the token. They did this because the Ethereum foundations wallet supply is down 97% and they are running out of tokens to sell . So they chose to increase the price more short term over the long term success of the ecosystem.

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  17. BTC is widely treated as a store of value. ETH does get spent. There is a huge market for NFTs. Some people use the tech, some people invest.

    To answer your last question, no. Spending Crypto won’t make the price go up. Adoption and return on investment are completely different. Example: Monero. Monero is fairly simple in what it wants to do, and it does it well. That also means there is no incentive to hold it and the price will suffer as a result.

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  18. Because we’re still early and haven’t hit mass adoption yet, and it’s too valuable for most people to spend much of it yet.

    Keep in mind, currency is only one aspect of crypto. It’s been over shadowed by a ton of new utility. Self-banking, ownership, security, store of wealth, independence, decentralized finance, etc…

    When smart contracts came out, it really opened the can of worm on even more utility. The sky is the limit now.

    There’s just so many better utility now than just spending it.

    I still use crypto for purchases on a regular basis. But most of it I hold for utility, to have real money I can control the way I want, and for an investment.

    But for me the main barrier for spending it isn’t even volatility, fees, or anything like that. I’ve never had an issue with those. It’s taxes.

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  19. crypto is a speculative asset, not a currency. It’s just not good as a currency. Banks and cards and cash are better in every (?) way as a currency

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  20. BTC and Eth are set to rise A LOT in price. Our currencies look set to drop a lot in value. I know which one I’d be spending

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  21. Best we have is companies like cdc, Binance etc, offering the cards you can top up and convert to fiat. Small businesses and individuals accepting crypto is a sure fire way to have them bankrupt

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  22. I use Banano on JungleTV. Have used LTC to pay for a miner. Also used a memecoin called Planetwatch to buy sensors.

    Used a few cryptos without spending them like Algo and moons for governance. Providing liquidity for Doge and few other coins.

    If you think about it, a lot of us are already using crypto.

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  23. Because when the time comes, you don’t need to. Just barely holding the coin would give you highest rank of credibility and you could borrow as much fiat money as you want. You don’t want to disturb the fiat money game, since that will irritate the regulators and even disrupt the macro economy

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  24. I hold ETH and BTC in terms of savings, and spend the smaller coins with applications (e.g. gaming, DEFi). Did not buy real world stuff with crypto yet though

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  25. I spend it all the time. ETH for Gods Unchained, BTC for any other coin in whatever game I play or to boost my Hive account.

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  26. Plenty of people spend crypto. The trick is if somewhere accepts crypto or the product or service you want only accepts crypto, buy the same amount of crypto using fiat as it is for the purchase you made. 0 Loss of your holdings, you get your product, and you contribute to the cryptocurrency ecosystem.

    Pro tip – if you make regular purchases using crypto, buy a little more crypto than you spend. natural DCA

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