Everyone's Hodling Bitcoin: Only 1.3% of Transactions are Payments in 2019

Bitcoin needs the hype to attract mass appeal to be considered a viable electronic alternative to money but it has developed a culture of ‘hodlers’ who advocate accumulation rather than spending.”However, it could be that the new economics of a vigorously deflationary currency like bitcoin that drive this market behavior, not peer pressure. At the bottom of the culture of “hodlers” who advocate accumulation one may find it is the “invisible hand” of Adam Smith who guides these economic decisions based on specialized knowledge and self-interest.––and a rather self-evident economic principle called “Gresham’s Law.”“Bad money drives out the good.” -Sir Thomas Gresham (1519–1579), English financier during the Tudor dynastyWhat bitcoin hodlers know — or think they know — is that bitcoin is “good money” while dollars are “bad.” That’s not necessarily because they just like bitcoin, or don’t like dollars, or just happen to be inveterate contrarians.It’s because banks designed the U.S. monetary system for dollars to lose an average of 3% of their value every year as the Federal Reserve that issues them steadily expands the money supply.