Why would I spend bitcoin when the value is soaring?
Because I have no alternatives eventually.
See, let's say i start out with 5k worth of bitcoin and 5k worth of USD.
The bitcoin go up in value while the USD go down via QE.
As you suggested I avoid spending the 5k in BTC but thing is eventually I will run out of USD and even if I don't because say I got a day job source of USD income eventually I will want to buy something which is above my pay rate and I will have to use my btc.
The same thing happens with gold or with an estate property, only thing, bitcoin is more liquid than that and unlike gold or a house I can decide to use a tiny part at anytime without selling or exchanging the whole cake.
And with BTC merchant can offer discounts which may encourage the use of btc.
Your argumentation is valid yet I bet that you are very unlikely to invest all your money in Bitcoins thus you will not run out of USDs or Euros, whatever. Let's see.
See, let's say i start out with 5k worth of bitcoin and 5k worth of USD. The bitcoin go up in value while the USD go down via QE.
As you suggested I avoid spending the 5k in BTC but thing is eventually I will run out of USD and even if I don't because say I got a day job source of USD income eventually I will want to buy something which is above my pay rate and I will have to use my btc.
The same thing happens with gold or with an estate property, only thing, bitcoin is more liquid than that and unlike gold or a house I can decide to use a tiny part at anytime without selling or exchanging the whole cake.
And with BTC merchant can offer discounts which may encourage the use of btc.
Time will tell.