Let me tell you an economics story.
When precious metals were used as currency in ancient times, people had an old habit of digging a pit to bury the precious metals, gold, silver, and copper, without exception. Take the Ming Dynasty as an example. At that time, a quarter of the world's silver flowed into China, and China was still in a state of deflation lacking silver. why? Because the mining volume of natural precious metals is very limited, under the conditions of productivity at that time, the speed of mining precious metals is far behind the growth rate of commodities on the market.
This has caused the price of precious metals to be much higher than their par value. Everyone is bullish on the value of precious metals and not bearish. As long as they have the opportunity, they will hoard precious metals, which further reduces the circulation of precious metals on the market and causes deflation Even worse, the economy has been hovering at a low level for a long time. This vicious circle was not resolved until the modern central government-issued paper money. This story tells us an economic principle.
Any currency with a limited output and a bullish but not bearish value will inevitably lead to hoarding expectations and create a situation where there is no market. You use this economic principle to apply a set of bitcoins to see if this is the truth?
Please excuse my weak English.
