Stop Hoarding Bitcoin! Here’s Why You Should Spend It

Name: Stop Hoarding Bitcoin! Here’s Why You Should Spend It
Uploaded: 2025-10-02T23:31:49+00:00
Duration: 38 min 10 s
Channel: Crypto Robot

Crypto Robot

Bitcoin isn’t just an asset to hoard — it was created to be spent. 🚀 While many see BTC as “digital gold,” the truth is that its real value comes from being used in everyday life. Adoption only grows when people actually use Bitcoin for payments, not just as a store of value.

In this video, we’ll explore why you should spend your Bitcoin instead of just hoarding it. We’ll break down how real-world usage increases demand, strengthens the Bitcoin network, and accelerates mass adoption across merchants, online platforms, and global payment systems. We’ll also discuss whether spending BTC today could actually make it more valuable tomorrow.

Should Bitcoin be treated only as an investment, or should we start using it like cash? Stick around for insights into crypto adoption, real-world use cases, and why spending BTC could be the next big catalyst.

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00:00welcome back to the deep dive today we're really embarking on I think an essential mission we're

00:10going to dissect this core conflict right at the heart of the digital asset space we're looking at

00:16sources exploring that big tension yeah the tension between Bitcoin's original idea you know

00:22peer-to-peer electronic cash right and what it's mostly become culturally this digital gold idea

00:29just a long-term store of value and that tension that constant sort of tug-of-war between saving it

00:36ocho dealing and actually spending it it's not just some like philosophical debate is it it feels almost

00:41existential for Bitcoin it really does so our deep dive today it's aimed right at you our listener

00:46because you follow this stuff yeah we want to figure out exactly how this choice hodl or transact

00:52how that dictates the assets utility yeah it's ability to scale and really the big one its path

00:58towards mass adoption can it be everyday money and the central paradox the thing that really grounds

01:03this whole conversation is that the system you know Satoshi's white paper it was built for transactions

01:09but the success story we tell it's almost entirely built on not transacting on inactivity it's kind

01:16of wild when you put it like that we love that hodl culture drives scarcity drives the price up we all

01:21check the charts but if we only treat it like this appreciating savings account are we accidentally just

01:26sort of glutting its chances of ever being that global transaction layer exactly how do we keep that

01:32investment idea alive the number go up part while also you know feeding the transactional engine that's the

01:38mission today okay so let's maybe unpack this core issue first this fundamental tray off right for what the last

01:44decade the main story has been Bitcoin's number one job is store of value digital gold driven by that

01:52mathematical scarcity yep and the logic follows the more people hodl the fewer coins are floating around

01:58circulating and the higher the price goes it's presented as this like beautiful almost automatic

02:02mechanism it is appealing but the question is what price are we paying for that what does that long-term

02:09saving strategy due to the short-term usability the day-to-day function yeah well it's almost a textbook case

02:15isn't it where the assets perceived value starts to cannibalize its actual intended use also hodling is the engine

02:24driving scarcity that's undeniable when long-term holders you know pull their coins off exchanges lock them away in

02:31cold storage for maybe years for restricting supply exactly which lines up perfectly with that digital gold story the

02:38stock-to-flow models all those predictions of huge price targets and if you're just an individual

02:44investor focused only on number go up then hodling is completely rational behavior why spend something

02:50you think will be worth way more tomorrow it's and here's the kicker if everyone follows that perfectly

02:56rational individual strategy then bam you run smack into the utility paradox explain that well look the whole

03:03point of a payment network any payment network is utility and that comes from transaction density lots of

03:08payments happening all the time if say 99 of all the Bitcoin is just locked away gathering digital dust

03:15in cold storage transaction volume plummets right down to almost nothing potentially and if that happens

03:21the entire business case for anyone or merchant a payment processor to accept it just collapses why bother

03:28precisely think about a big retail chain they've got to spend real money time resources to integrate a new

03:34payment system training staff compliance checks it's a whole project huge and if after all that hassle

03:41they only see like one Bitcoin payment every three months it's a money pit the integration is a liability not

03:47an asset exactly it's a sump cost with zero return and okay this brings us back to that you know famous or maybe

03:54infamous economic idea Gresham's law ah yes bad money drives out good we hear it all the time in crypto right

04:01the idea is people hoard the good money the appreciating asset Bitcoin and they rush to spend the bad money the

04:08depreciating stuff fiat so does that old law fit perfectly here is that what's happening well the sources we looked at they bring in a really crucial

04:16nuance here and this is where we have to you know look a bit deeper than just the catchphrase okay

04:21historically Gresham's law usually worked in systems where using or converting currency was like mandated by the government

04:28right like a fixed exchange rate exactly think of a bimetallic standard gold and silver coins if the government set the price of

04:36silver too low compared to its market value people would hoard the silver coins or melt them down yep the state's own pricing structure force the good money out of the state's

04:44force the good money out of circulation but that's not quite our situation today is it no it's different today fiat currencies and

04:52Bitcoin just coexist and for most people certainly in developed countries the choice to spend their dollars or euros which are losing

05:01value slowly or spend their Bitcoin which they hope is gaining value the choice is completely voluntary there's no government mandate

05:08forcing one out so the bad money the fiat isn't technically driving the good money out not in the class

05:14classic Gresham sense it's more like the individual holder is voluntarily pulling the good money Bitcoin out of circulation because of the

05:22investment potential exactly it's an investment strategy a rational one maybe for the individual but it's one that collectively stifles the transaction density we need so the end result looks similar lack of circulation

05:34but the reason behind it is different it's behavioral choice investment math not a government rule precisely and that means if we really want Bitcoin to succeed as actual cash we need to figure out ways maybe behavioral nudges or structural changes that make spending it also a rational useful choice right alongside saving it okay so the need for transactions

05:56seems clear to avoid that paradox but let's get fundamental why must transactions happen for Bitcoin to move beyond just being you know a speculative thing held by institutions and HO dealers why isn't just big money buying it enough

06:09allegations yeah why can't institutional buys and custody solutions alone prove it works because well institutional investment validates Bitcoin as a store of value maybe digital gold but only actual transaction

06:22volume validates it as a functioning medium of exchange as money you can use okay it really all comes down to the merchants viewpoint and the practical justification for them to even bother integrating it the ROI argument again exactly retailers need to see a measurable return on investment think about all the costs involved for them we touched on it integration

06:52it's the risk of price swings between the price swings between accepting the payment and settling it

06:58wow yeah that's a huge list of operational hurdles it really is and if the volume the number of transactions isn't there to offset those costs and hassles the whole integration effort is just wasted money and time absolutely that high barrier to entry for merchants it's only ever going to be justified if there's high velocity lots of people actually wanting to spend it

07:17so spending is like real world proof undeniable proof it's evidence of utility that goes way beyond any white paper any investment thesis any billionaire tweeting about it okay spending demonstrates to banks to nervous regulators even to competing businesses that there's real consumer demand here people actually want to use this thing for everyday commerce and without that proof the whole system stays kind of fragile doesn't it it relies entirely on the hope of future price gains

07:46future price gains not on any like foundational economic activity happening right now and we don't need to just talk hypothetically here we've got a pretty stark real world example right the pay fast case study out of South Africa oh yeah this one it perfectly illustrates what happens when the HDL culture just completely dominates utility tell us about pay fast what happened there it's really a cautionary tale should be required reading for anyone thinking about crypto adoption pay fast they're a pretty big deal major South African pay

08:16payment gateway and they were actually quite forward thing got it early super early they integrated Bitcoin payments way back in 2014 enthusiasm was high then lots of buzz they were building the rails okay so they were pioneers definitely but then just five years later in 2019 they made a public announcement they were dropping support for Bitcoin entirely Wow so what was the official reason why pull the plug after investing in it and this is the crucial part

08:45it wasn't it wasn't because of regulators cracking down it wasn't a technical glitch or security breach so what was it purely economics low usage volume simple as that nobody was actually using it to pay well not enough people the sources we looked at confirm the transaction density was just so low so that the ongoing costs of keeping it running maintaining the specific code for Bitcoin payments managing the security side dealing with the inevitable customer service questions that pop up just wasn't worth it financially exactly the cost

09:13the costs outweighed any revenue or benefit they were getting from it they had to pull the plug because the users in what was a relatively stable economy compared to some neighbors they overwhelmingly chose to HODL their Bitcoin hoping it would appreciate rather than spend it so the inertia of saving just crush the need for spending in that market at least perfectly put and the wider impact of a decision like that you know it can't be overstated how so well when a major

09:43established payment processor especially one known for being an early adopter publicly retreats like that it sends a really bad signal a powerful negative signal to every other retailer every other payment gateway around the world who might be thinking about integrating Bitcoin it basically says this technology isn't ready for primetime commerce exactly or at least the demand isn't there yet it creates this chill this merchant confidence failure

10:13enough not even close infrastructure needs fuel it needs transactions flowing through it to survive the pay fast story confirms that this HODL paradox we're talking about isn't just academic theory no it has real direct and pretty damaging consequences for adoption in the real world absolutely okay let's shift gears a bit let's move away from these developed economies where you know HO dealing is largely a strategic investment choice

10:43right where Bitcoin isn't right where Bitcoin isn't right where Bitcoin isn't about getting rich it's about getting by exactly because here's where the story of Bitcoin as a transactional tool really comes alive isn't it in places fighting hyperinflation or where the local currency is just collapsing spending Bitcoin isn't a choice between potential gains and a cup of coffee it's actually a means of financial survival yeah this contrast is so important for understanding

11:13Well in markets like the US or Europe holding Bitcoin is mostly about optimizing your investment portfolio right managing capital gains sure but you go to places grappling with serious inflation think Argentina Zimbabwe Nigeria Venezuela even parts of South Africa we mentioned using Bitcoin or often stable coins built on similar rails it's about preserving the value you need for tomorrow's food it's about survival so when your local fiat currency is losing say 5% of its purchasing

11:43power every single power every single month you have a massive urgent incentive to get your value out of that collapsing currency immediately and move it into something more stable right which in many of these places turns out to be Bitcoin or maybe a dollar pegged stable coin you hold it there just to stop the bleeding so the actual spending we see there the transactions yeah it's not speculative churning it's essential stuff totally it's paying rent buying groceries sending money to family across borders remittances are huge real utility

12:13absolutely and this usage is organic it's urgent it's sustained day after day people are actively spending Bitcoin or stable coins because holding the local currency guarantees you lose money can you give an example sure think about a merchant in say Nigeria selling maybe imported electronics or something durable they might actually start pricing their goods in Bitcoin not in Naira right because they literally can't trust that the Naira they receive today will be enough to buy replacement inventory next week or next month inflation is eating it too fast

12:43Wow so that force is a kind of circular economy doesn't it driven purely by the need to escape inflation exactly necessity becomes the mother of adoption and the sources we looked at they also frame this kind of necessity driven spending as something more like a political act yeah how does that work how does using Bitcoin in these places actually put pressure on regulators well it fundamentally shifts the power dynamic doesn't it okay when using Bitcoin becomes a

13:12essential for financial survival like when using it to send remittances home bypassing strict government capital controls or when local shops start pricing basic goods in BTC because the fiat is worthless what are they doing they're essentially building an independent parallel financial system one that operates outside the government's direct control outside their ability to inflate away savings or seize funds easily precisely and this activity it's not hidden

13:42undeniable it's undeniable it's happening out in the open in marketplaces so regulators can't just ignore it or dismiss it as some fringe tech thing not anymore not when their own citizens are relying on it daily just to function it forces them to confront the reality that Bitcoin is already acting as a primary medium of exchange for a growing number of people so it forces recognition but from the bottom up driven by the users not by some top-down government decision exactly it doesn't matter

14:12this real world usage pressures local banks they have to figure out okay how do we interact with this stuff it pressures the central bank to at least acknowledge its velocity and impact that seems like the ultimate proof of utility right right when it works precisely because the traditional system has failed people couldn't have said it better myself it operates where the old system has broken down so if this necessity is driving usage how do analysts actually measure this specific activity

14:42moving coins or exchange activity yeah that's key we rely on pretty granular on-chain analysis good analysts have tools to filter the firehose of data oh they work hard to differentiate between what you might call whale movements these are typically large infrequent transactions often linked to institutional custody wallets or big exchange balances okay the HR dealers or traders right differentiate that from the high frequency small value transactions that characterize retail spending and you can see that

15:12graphically increasingly yes increasingly yes in places like Nigeria or Argentina if you see a sudden sustained spike in the number of daily transactions coupled with a decrease in the average size of each transaction that suggests lots of small payments like buying coffee not a car exactly that's a strong indicator of retail activity we look at specific metrics like spent output volume broken down by geographic region trying to isolate activity in wallets that show a high turnover rate coins coming in and going

15:42out quickly so a pattern of small amounts moving fast between many different user wallets that's your smoking gun that's a clear sign that bitcoin is being used as actual cash where its immediate utility is valued more than its potential future price gain okay that necessity case is really powerful but let's swing back to the developed world for a minute where the challenges are different the barriers are more structural right where people could spend it but often don't exactly if spending is so vital for the network's health and we

16:12theoretically theoretically have the infrastructure like payment apps and processors why do even the biggest bitcoin fans in say the US or the UK or Canada still hesitate why don't they use that spending wallet more often what's the biggest single roadblock oh without a shadow of a doubt the number one structural problem the biggest point of friction in most developed economies is the tax compliance nightmare taxes always taxes yep and it's not even necessarily the tax rate itself that's

16:42the killer it's the killer it's the sheer administrative burden it dumps on the average user explain that what's the core issue well take the United States is the prime example the IRS right now officially treats Bitcoin not as currency but as property like a stock or a house okay and the implication of that is every single time you spend it every single transaction is considered a disposal of property which means it's a potentially taxable event with every coffee every online purchase

17:12every single one imagine you're trying to actually use your Bitcoin spending wallet like cash you buy a coffee then grab some groceries maybe pay for a subscription online dozens maybe hundreds of small transactions over weeks or months exactly and for each one of those according to the current rules you are technically required to calculate the capital gain or loss you realized how would you even do that you'd need to know the price you originally paid for that specific fraction of Bitcoin you just spent

17:42you spent it that sounds impossible for small amounts it's incredibly burdensome crippling really you have to track your cost basis for every tiny fraction of a Bitcoin did you buy the Bitcoin you use for that $5 latte six months ago when the price was $20,000 or yesterday when it was $60,000 because the game is different massively different and if you've bought Bitcoin at multiple prices over time which everyone does and your wallet mixes

18:12you have to have a lot of complex accounting methods like FIFO first in first out or maybe LEFO last in first out just to figure out the tax liability for potentially hundreds of tiny spends over the year so buying a coffee turns into potential accounting homework or worse potential trouble with the tax authorities if you don't do it right this level of compliance friction just completely obliterates the seamless easy user experience that real cash needs yeah cash is supposed to be simple instantaneous

18:42exactly this tax treatment is fundamentally at odds with the very idea of using it as cash okay so if that property classification and the resulting tax burden is the main barrier in places like the US surely there's a regulatory path forward a way to fix this absolutely and the good news is we're already seeing sensible solutions emerge the sources point to clear pragmatic regulatory fixes Australia's great example what did Australia do they implemented a

19:12really crucial exemption they basically recognize that treating every tiny personal purchase as a capital gains event was unworkable and discouraged use they changed the rule yes they created a rule where Bitcoin use for day-to-day personal purchases below a certain threshold I think the figure often cited is around 10,000 Australian dollars per transaction is exempt from capital gains tax a de minimis exemption exactly that kind of regulatory clarity is a total game changer because it sends a clear signal to users look for

19:42for your everyday spending your coffee groceries don't worry about tracking the cost basis just use it it removes that massive administrative roadblock for casual commerce it aligns the tax rules with how people might actually want to use digital assets as money precisely it seems like the most sensible path forward if you actually want widespread adoption for payments okay but until that kind of clarity becomes the norm in major economies like the US which could take a while could take a long while how does

20:12the average Bitcoin or navigate this someone who believes in the tech wants to support the network by transacting but also doesn't want to risk their main investment stash or get buried in tax forms yeah what can you the listener do right now this is where that really practical actionable strategy comes and the one highlighted in the sources it's called the two wallet strategy two wallets okay sounds simple enough it is conceptually it's built on deliberately separating your funds based on their purpose

20:42so you can't be able to do it yourself walk us through the two wallets walk us through the two wallets what are they and what do they do okay wallet number one is your savings wallet think of this as your deep cold storage your long-term

20:52HODL stack the digital gold part exactly these funds are purely for preservation for wealth accumulation you secure these with the absolute highest security standards you can manage maybe an air-gapped hardware wallet multi-sig whatever works for you and you don't touch it often ideally almost never it's locked away not exposed to online risks and it represents that core investment thesis that's the number go up stat okay got it savings wallet what's the second one is your

21:22the second one is the key to actually making transactions feasible and less stressful that's your spending wallet okay think of this like the cash you keep in your physical wallet or purse it's a separate pool of funds specifically earmarked for daily or weekly transaction needs coffee money grocery money online shopping money precisely and crucially how you fund this wallet matters for managing that tax headache we talked about how so ideally you fund the spending wallet with fresh fiat deposits that you convert to btc right before

21:52spending or maybe with a small specific allocation of bitcoin where you know the exact cost basis ah so you can track the cost basis for just that small amount making the tax calculation way simpler if it's still required exactly it simplifies the accounting dramatically but maybe even more importantly there's a huge psychological benefit what's that by consciously setting aside a specific limited amount just for spending

22:22feeling like you're feeling like you're feeling like you're feeling like you're giving up potential future gains every time you buy something small because you've already decided this particular pot of money is for spending right you're not debating the investment case for your coffee money you're just using the cash you allocated for transactions it removes the decision paralysis okay that makes sense but isn't there a security trade-off keeping a hot spending wall that one that's

22:43online and easy to use. Isn't that riskier than the cold storage savings wallet? That's the

22:49critical risk management piece. Absolutely. And the strategy inherently addresses this by

22:54limiting the exposure. How? Your spending wallet should only ever hold a relatively small amount

22:59of funds, an amount you could afford to lose, frankly, maybe just what you expect to spend in

23:05a week or a month. So if it gets compromised, it's annoying, but not catastrophic. Exactly.

23:10It's easily replenishable. You wouldn't keep your life savings in your physical wallet, right?

23:14Yeah. Same principle here. This small sum may be held in a reliable mobile wallet or even better,

23:21a Lightning Network wallet. Ah, Lightning. Yes. That provides the day-to-day utility you need

23:27without putting the vast majority of your wealth safe in the savings wallet at risk. And the goal

23:32really is for these spending funds to eventually flow mostly through layer two solutions like

23:36Lightning. Because they're built for exactly this. Fast, cheap, small payments. Precisely. Lightning

23:42is designed to solve the speed and cost issues of on-chain transactions, making it perfect for that

23:47spending wallet use case. Okay. The two-wallet strategy gives individuals a practical way to

23:53participate. But for spending to become more than just a niche activity for enthusiasts, we probably need

24:00more, right? We need actual tangible incentives to nudge people's behavior. Yeah. To get them to

24:06choose the Bitcoin spending wallet over their default fiat debit card. Exactly. What kind of incentives

24:12have actually worked in the real world to kickstart this? Incentives are absolutely crucial, especially

24:17in the early stages. They're like the bootstrapping mechanism for any new payment network. And they work

24:23best when they make the crypto payment option demonstrably better or at least cheaper than the old way.

24:28Got examples. We saw some really powerful ones again in South Africa. Remember, PayFast pulled

24:33out due to low volume, while others tried to boost volume with rewards. Like who? The big national

24:39grocery chain, PicknPay, during some of their early trials with Bitcoin payments, they offered 10% cash

24:45back in sats. Wait, 10% back paid in Bitcoin just for using Bitcoin to buy your groceries? Yeah. That's a

24:52direct, immediate economic motivation. You're basically getting a 10% discount just for using the crypto

24:58payment rail instead of your regular card. That's pretty compelling. Behavioral economics 101,

25:03right? Immediate reward. Totally. Reinforce the desired behavior with a tangible benefit.

25:08And the incentives actually got even more aggressive in some cases. Platforms like Binance QR payments,

25:14also in South Africa, were offering rewards of up to 50% back in sats for certain early payments.

25:2050%. Wow. Yeah. Obviously not sustainable long term, but as a short term promotion,

25:25it directly drives utility, gets people over the hump of trying a new payment method,

25:30familiarizes them with the interface. And crucially, it generates that initial transaction volume,

25:36the volume needed to convince payment processors and merchants that it's worth supporting the system.

25:41Exactly. It kickstarts the flywheel. Okay. So incentives help get individual transactions

25:45going. But the ultimate goal, as the sources seem to define it, isn't just random scattered

25:50payments. It's building something more systemic, right? A closed loop system. That's the holy grail.

25:57The circular economy, an ecosystem where Bitcoin comes in, gets spent, gets earned,

26:02and circulates within the community without immediately needing to be cashed out to fiat at every step.

26:08Where can we actually see this model working, not just in theory, but on the ground?

26:11The prime example, the one that gets talked about a lot, and for good reason,

26:15is Bitcoin Ikasi in South Africa. Tell us about Ikasi. What is it exactly?

26:20So Bitcoin Ikasi Ikasi means township isn't some big corporate project or marketing stunt.

26:26It's a genuine grassroots community initiative. It's focused on a specific township near Mossel Bay.

26:32And the mission? The mission is explicitly to build a parallel functioning local economy that runs

26:37primarily, almost exclusively on Bitcoin, and crucially using the Lightning Network for most

26:42transactions because it's fast and cheap. Wow. So what does daily life look like inside

26:47Bitcoin Ikasi? How do they actually achieve that level of transactional density?

26:51It really comes down to saturation and commitment within that community.

26:55They actively educate and onboard local merchants, everyone from the corner store owner,

27:00the barber, street food vendors, even local taxi services to accept Bitcoin, usually via Lightning

27:06wallets on simple smartphones. So the places to spend it are readily available.

27:10Yes. But here's the critical part for circularity. They also work to get local wages,

27:16stipends for community work, even tips for services denominated and paid out in Bitcoin.

27:22So people are earning BTC locally.

27:24And then they can immediately spend that BTC at the local grocery store, which also accepts it.

27:29Maybe pay their rent in BTC to a landlord who accepts it.

27:32So the Bitcoin stays within that local system, circulating between residents and merchants,

27:37before anyone feels the need to cash out to fiat.

27:39Exactly. That achieves true high transaction density. The money is moving, providing utility,

27:45supporting the local economy without constantly hitting a bank or a fiat conversion bottleneck.

27:50That really proves the concept, doesn't it? That a high velocity, resilient Bitcoin economy

27:56is possible, at least on a micro level, if you have that social buy-in and the right tools like

28:02Lightning.

28:03It's a powerful demonstration and it stands in pretty stark contrast to some of the,

28:08you know, splashier corporate adoption attempts we've seen.

28:11Like what? You mean like the Tesla example?

28:13Exactly. Remember all the massive hype when Tesla announced they'd accept Bitcoin for car

28:18purchases back in 2021? Huge news cycle.

28:21Massive. And it certainly generated high transaction value because cars are expensive,

28:25but it generated extremely low transaction volume.

28:28Right. Not many people actually bought Teslas with Bitcoin.

28:31Probably very few, relatively speaking. And while those headlines are exciting for sentiment,

28:36a handful of huge multi-thousand dollar transactions does absolute nothing to build the

28:40day-to-day operational density or the payment channel liquidity that a stable payment network

28:45actually needs. So Bitcoin Icosi, with its thousands of tiny daily lightning payments,

28:51a coffee, a haircut, some groceries. That's actually far more important,

28:55far more fundamental to proving Bitcoin's long-term utility thesis than a few Teslas being sold.

29:01It builds the base layer. Okay. Last point on this section. Why does building this stronger

29:06Bitcoin payment culture, whether it's through grassroots projects like Icosi or through broader

29:11incentive programs, why does that matter for the rest of the crypto and Web3 world?

29:16Because that base Bitcoin payment layer, especially using things like lightning,

29:21it really acts as the foundation. It's the bedrock upon which almost all other decentralized finance,

29:28Web3 payments, stablecoin usage, a lot of it is ultimately built or at least referenced back to

29:33Bitcoin. How so?

29:34Well, if users become comfortable, fluent, just used to using a decentralized cryptographic payment rail for

29:39simple everyday things. Like buying lunch with lightning.

29:41Yeah. Then it dramatically lowers the mental barrier, the adoption friction for them to try

29:46related technologies. It makes using stablecoins seem less weird. It encourages the growth and use

29:52of the lightning network itself, which is vital for scaling Bitcoin. It builds familiarity and trust in

29:58the whole concept of non-traditional payment rails. Exactly. So conversely, a weak, unused utility layer

30:04for Bitcoin payments means a shaky foundation for the entire vision of decentralized commerce and

30:10finance. They're interconnected.

30:12Okay. So we've talked about the need, the barriers, the strategies, the examples. But at the end of the

30:17day, the big question remains, is this spending culture actually making any headway against the

30:23deeply entrenched HODL culture?

30:25Right. Are we seeing a real shift? How do we even measure that? We need to look beyond just the price,

30:29right?

30:30Absolutely. Price tells you about investment sentiment, maybe. But to understand utility,

30:34we need to focus on specific, actionable data points, metrics that track this cultural evolution

30:40on the ground.

30:41So if analysts are trying to gauge this balanced utility versus storage, how do they actually

30:46quantify the difference? How much Bitcoin is just sitting there versus how much is actively being

30:50used for payments?

30:51Yeah. The main tool here is analyzing unspend transaction outputs, or UTXOs, essentially tracking

30:57chunks of Bitcoin on the blockchain. Analysts filter the total supply based on the age of

31:02these UTXOs, how long it's been since they last moved.

31:06So you can see coins that haven't moved in years.

31:08Exactly. We track how much BTC is sitting dormant in wallets for long periods, coins unmoved for six

31:14months, a year, five years, even longer. That's generally considered the HODL supply or long-term

31:21holder supply.

31:21Okay. The diamond hand stash.

31:23Pretty much. Then you compare that relatively static HODL supply against the volume of coins

31:29that are moving frequently, especially those moving in smaller amounts associated with retail.

31:34That's your active payment volume indicator.

31:37So what's the key signal you're looking for?

31:39You're looking for an increase in the velocity of the circulating supply coins changing hands more

31:44often, even if the total HOBL supply remains large or keeps growing. If velocity picks up,

31:49especially in smaller transaction sizes, it suggests the spending engine is starting to rev

31:54up, even while the savings function remains strong.

31:57Right. But we know on-chain transactions for small payments are slow and can be expensive.

32:02So doesn't that mean we need to look very specifically at the tech built to fix that?

32:06Absolutely critical. You have to look at the Lightning Network's growth.

32:09That gives you probably the most vital insight into the health of the actual spending infrastructure.

32:16What specific Lightning metrics matter most?

32:18You track several key indicators, the number of active Lightning nodes participating in the

32:23network, the total channel capacity, that's the amount of Bitcoin locked into Lightning

32:28channels ready to facilitate payments.

32:31More capacity means more potential payment volume.

32:33Generally, yes. Higher capacity suggests more liquidity is available to route payments

32:38quickly and reliably across the network. And you also look at actual payment success rates

32:44and estimated transaction volumes on Lightning, although those are harder to measure precisely

32:48because it's off-chain.

32:50So Lightning network growth is basically the barometer for Bitcoin's potential as actual cash.

32:55It's a huge part of it. This infrastructure, built for instant payments and tiny fees, is the

33:00direct technological answer to that utility paradox for everyday spending. If Lightning adoption

33:06is accelerating more nodes, more channels, more apps, more users, it means the structural ability

33:11to spend Bitcoin easily is maturing.

33:13Okay. And what about tracking those necessity-driven markets we talked about? Places like Nigeria or

33:19Argentina where utilities growing fastest out of need?

33:22Yeah, you need to keep close tabs on those. Analysts maintain detailed on-chain activity analysis

33:28broken down by region. It involves sophisticated filtering to try and screen out noise from large

33:35corporate treasuries or exchange wallets and really isolate the organic peer-to-peer retail activity.

33:42Looking for those spikes again.

33:43Exactly. Consistent, sustained increases in transaction density, more transactions per day,

33:48especially when concentrated in these inflation-hit countries. Those are powerful signals.

33:53And if those spikes aren't just temporary blips, but they continue over months or quarters.

33:57Then it tells you something real is happening. That necessity is genuinely forcing users to

34:02integrate Bitcoin or related stablecoins into their daily financial lives. They're using it as money.

34:07And that provides the undeniable utility proof that maybe the rest of the world needs to see.

34:12Okay. And finally, maybe the simplest metric of all, but maybe the most telling.

34:18Yeah. The simplest one is just the merchant adoption rate. Pure and simple are more businesses,

34:24online platforms, payment processors, adding support for Bitcoin payments than are dropping it.

34:30Net additions versus net subtraction.

34:31Exactly. The loss of PayFast back in 2019, that was a huge red flag, a big negative signal.

34:38On the flip side, the quiet proliferation of lightning payment apps being adopted by thousands

34:43of small businesses globally, whether it's in El Salvador, parts of the US, Europe, Asia.

34:48That's a positive signal.

34:49A strong positive signal. It's probably the purest proxy we have for real-world viability.

34:54If merchants are adding support, it usually means they're seeing some demand, some volume,

34:58or at least they anticipate it if they're dropping support, like PayFast did.

35:01It means the HODL paradox is winning out, at least in that context.

35:05Precisely. It's the bottom line for practical adoption. Hashtag tech tech outro.

35:09So we've really covered a lot of ground here, from the deep cold storage HODL strategies,

35:15all the way to those hyperinflationary markets where Bitcoin is literally a lifeline.

35:19Yeah, it's a complex picture.

35:20It really is.

35:21Yeah.

35:22But I think the key takeaway, the thing we've distilled from all these different sources and angles,

35:26is this. Bitcoin probably can't succeed solely on preservation, on just being digital gold.

35:33While HR dealing is crucial, it drives that scarcity, feeds the price appreciation narrative.

35:39Right. But long-term success, especially fulfilling that original

35:43vision of peer-to-peer electronic cash, it seems to demand finding this really critical balance.

35:49An equilibrium.

35:50Yeah, an equilibrium between preserving your capital, your investment,

35:54and actually intentionally using the network, practicing utility.

35:58Because if the asset is never actually used for its intended purpose.

36:01It risks just staying stuck as a purely speculative investment, right?

36:05Never quite reaching its full potential as that decentralized medium of exchange it was designed to be.

36:10And maybe this whole conversation forces a bit of, you know,

36:13self-reflection for you listening right now.

36:15Well, ask yourself, in your own financial life, your own decisions,

36:19do you truly think of Bitcoin as functional money, something you could actually use?

36:23Or is it really just an investment you hope to sell for more fiat later?

36:27Can it successfully be both? That's the big question.

36:30It is. And here's a final thought experiment for you to chew on. Imagine if every single person

36:36holding Bitcoin today consciously decided to allocate and spend, just say, 1% of their holdings each year.

36:43Just 1%? Through a dedicated spending wallet? Maybe on Lightning?

36:48Yeah. Small transactions. Would that small but widespread commitment be enough transactional fuel?

36:55Would it be sufficient to genuinely speed up global adoption, convince more merchants,

37:00and help Bitcoin finally reach that critical mass as usable money?

37:04That is a fascinating challenge. And honestly, we'd love to know what you think. What's your answer to that?

37:08Yeah. Let us know. And hey, if you found this breakdown useful, if digging into why spending

37:13Bitcoin actually matters was insightful for you, please take just a second to support the channel.

37:18It really does help. It does. Go ahead and smash that like button, hit subscribe if you haven't

37:22already, and definitely ring that notification bell. It genuinely helps crypto robot grow, boosts our

37:28visibility in the algorithms, and it lets us keep bringing you this kind of high signal content every

37:32single week. We appreciate it. We really do. And comment below. Let us know. Are you primarily

37:37a spender? Are you a strategic saver? A HO dealer? Or have you maybe implemented that two-wallet strategy

37:44to try and be both? Tell us your approach. We'll read through the comments and feature some of the

37:49best takes in the next deep dive.

38:02The answer to the question for every chant there that actual meditation or a

38:22group of people of people of people of the world series, inclination and t cleanse yourись.

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Stop Hoarding Bitcoin! Here’s Why You Should Spend It

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