I don&#x27;t see how you get that conclusion. For one thing, it&#x27;s not even true, people don&#x27;t actually hoard currency. They put it in a bank, which invests 90% of it back out into the economy. They&#x27;ve done that even since currency was backed by gold.<p>Second, even if people literally did fill vaults full of cash, it doesn&#x27;t hurt anyone. It&#x27;s not like all the currency is going to actually disappear and people will have to go back to bartering. The remaining currency just becomes worth more.<p>The bitcoin economy doesn&#x27;t collapse everytime someone loses a wallet. It never will, because the remaining coins can always be divided further, and always increase in value further.<p>Lastly it&#x27;s not like people will literally never spend that money again. They of course intend to spend it at some point. At some point the number of people saving vs taking out of savings will stabilize and everything will be normal. And saving for the future isn&#x27;t a bad thing. In fact it should be encouraged.