An analogy for Bitcoin as a medium of exchange : Bitcoin
I see the argument a lot that lack of adoption is pushed by Bitcoin not being a broadly accepted medium of exchange, and that we have to spend Bitcoin as a substitute of hodl or else it’s going to vanish into obscurity. In gentle of the worldwide pandemic, I assumed of an analogy which may strike a chord with some of you.
Let’s say you might have been stocking up some meals to be higher ready for lockdown or provide chain disruptions. You have recent fruit and veggies, as nicely as packaged and canned items. Which meals do you eat first? I believe the apparent reply is you eat the recent meals, the meals that’s going to spoil first, or a minimum of favor it closely, as a result of for those who solely eat the canned items then by the point you are hungry for the recent meals it will likely be spoiled already.
I believe the identical factor occurs with cash. Hard cash like Bitcoin is much like canned items on this analogy, as it’s going to retain the worth for for much longer than one thing that was already beginning to spoil the day you bought it.
Why would somebody spend Bitcoin when their paper cash is actively spoiling and dropping worth? As lengthy as another person is keen to just accept your comfortable cash in exhange for one thing you need, it’s in your greatest curiosity to spend it first. Then when all of the comfortable cash is spoiled and you may now not discover somebody keen to exchange for it, you can begin consuming into your exhausting cash.