/biz/ - Business & Finance

>>57447330
You are so fucking close. Yes, saleability theory accounts for people wanting to hold for an extended duration, any medium will take a time progress from point of buying the money to the point of selling it. However, for one this implicitly acknowledges that money is a medium of exchange. For two, price (be it future points of anticipated price) depends on supply and demand. You've correctly identified the supply part of the equation being inflation, but mistaken demand for this vague concept of "audience". This is why I said you were this close.
The demand (curve) is the function of exchanges based on price (in this case, it's inverted, so it's purchasing power). Higher demand means more exchanges occurring at the same purchasing power. Practically speaking, this means that independently from the effects of the supply curve people conduct more transactions. For what that might be is unknowable by definition since it's a subjective value judgement.
And indeed that might be because of future anticipations for the asset to keep its price. Founded or unfounded, realized on unrealized. But better viewed as money is sold at the end of the day, it is the general concept of "saleability of money" that determines its price alongside the supply curve. And this is why it's retarded to pursue SoV as this end goal, it's the classic example of putting the cart before the horse. Even if you are the most devoted HODLer, Bitcoin will be eventually sold or used. And Bitcoin's price depends on people's judgement on being able to use it. The only reason Bitcoin's price hasn't collapsed yet is the slow and steady replacement of the original userbase with investors and institutionals. They don't care about the abysmal state of the network, the fees, the centralized development, the loss of anonymity. They care that they can sell Bitcoin after the next supply-shock.
I attached picrel if you need help, but do not make me refer back to this post. Read and understand.