Does buying bitcoins and not spending them have negative influence of the bitcoin price? [duplicate]

Question

I'm curios whether stock investing behavior have negative infect on the price of the bitcoin and other cryptocurrencies. Since popular delusion is that the crypto is like a stock where you buy coins and wait for the right time to exchange it. What if most of the people don't wanna spend there bitcoins will that make them unpractical for use?

Answer 1

Every investor has a different threshold for risk tolerance. A price one investor might consider as cheap, might be expensive for another investor (read Greater Fool Theory.) If the investor base of bitcoin is considerably large, at any point in time you are highly likely to have two parties trying who will be willing to take opposite positions. Improvement in liquidity, introduction of new financial contracts (futures, derivatives) can go a long way in helping improve the price volatility in bitcoin and attract a wider base of investors.

Answer 2

No, it won't.

Why do I buy things with dollars rather than used toilet paper? I have lots of used toilet paper. I don't need it. I would much prefer to keep my dollars and get rid of my used toilet paper. But instead I buy things with my precious dollars. Why?

Simple. I buy things with dollars because the people I trade with really, really want dollars. They don't want used toilet paper. Because they really want dollars, they offer me good deals when I pay with dollars. Thus, even though I'd prefer to hold my dollars, I use them in trade precisely because other people also want to hold them, which makes them ideal for trade.

The more people want to hold bitcoin, the more useful they are in trade. The people I trade with want to hold them, and so will offer me good deals to make my part with my previous bitcoin.

Answer 3

I think, it does not. Because we also don't buy things with gold. But the value of gold is not lessing. We have gold jewelry and it does not lose is value because of laying in our caskets