503.5 Lesson - willBeHoarded

Screen: willBeHoarded

Headline: The Misconception of Bitcoin Hoarding

Reward: 4

Text: There is a common belief that the fixed supply of bitcoin incentivizes hoarding, or the act of holding onto bitcoin rather than spending it in the economy.

However, this logic has a few flaws. First, saving, or the act of setting aside income for future use, is often conflated with hoarding. In fact, saving is a necessary precursor to significant investment and can be seen as a responsible financial practice.

Second, holding onto bitcoin, or any form of money, is a common way to hedge against future uncertainty and does not necessarily mean that it is not being used.

As Pierre Rochard pointed out, "all bitcoin are always held by someone, payments only change who is holding it." In other words, the act of holding bitcoin is itself a use of bitcoin.

=================================================================

QUIZ

Question: Is holding bitcoin the same thing as hoarding bitcoin?

Answer: No, holding bitcoin is a way to hedge against future uncertainty and does not necessarily mean it is not being used

Feedback: Congratulations, you're on the right track! As Pierre Rochard pointed out, 'all bitcoin are always held by someone, payments only change who is holding it.' Well done

Correct: true

Answer: Yes, holding bitcoin is the same thing as hoarding bitcoin

Feedback: Uh oh, it looks like you might have fallen for the hoarding misconception! Holding bitcoin is a common way to hedge against future uncertainty and does not necessarily mean it is not being used

Correct: false

Answer: It depends on the individual's intentions and financial goals

Feedback: Sorry, but the distinction between holding and hoarding bitcoin is not dependent on an individual's intentions and financial goals. Better luck next time!

Correct: false