Bitcoin’s economic vision, as laid out by Satoshi Nakamoto in 2008, was never about sitting on a digital pile of gold. It was about creating a living, breathing electronic cash system. Yet, today, the dominant narrative is “HODLing,” with enthusiasts treating Bitcoin as a store of value rather than a medium of exchange. This shift risks undermining the system’s core mechanic: transaction fees. Satoshi’s model could crumble without widespread usage, proving that Bitcoin must be spent, not just stashed.
The fee-driven future
Bitcoin’s blockchain relies on miners to process transactions and secure the network. Miners are incentivized by two rewards: newly minted coins (the block reward) and transaction fees. The block reward halves every four years or every 210k blocks, down to 3.125 BTC in 2025, and will eventually hit zero around 2140. Well before that happens, fees alone must sustain the network. Satoshi foresaw this, writing in 2010 that “the fee market will develop” as issuance slows. But for fees to cover mining costs, transactions need to happen, and a lot of them fast.
Right now, fees are a footnote. But fast-forward a few years: if Bitcoin’s price doesn’t skyrocket indefinitely, fees must rise, or volume must surge to keep miners hashing. HODLing doesn’t pay the bills; usage does.
The HODLing Paradox
The HODLing craze, cheered by Maxis chanting “stack sats,” creates a paradox. Transaction volume stagnates if everyone holds, waiting for the next bull run. Data from 2024 shows daily Bitcoin transactions averaging 300,000-400,000, a fraction of Visa’s (NASDAQ: V) 500 million. Low usage means fewer fees, which could starve miners once block rewards dry up. A network with idle blocks isn’t just inefficient; it’s vulnerable. Miners might abandon ships, weakening security and inviting attacks.
Satoshi didn’t design Bitcoin as a speculative asset. The whitepaper’s title, “A Peer-to-Peer Electronic Cash System,” screams utility. Early adopters like Laszlo Hanyecz, who famously spent 10,000 BTC on pizza in 2010, embodied this vision. HODLing flips that on its head, betting on scarcity over circulation. But scarcity alone won’t sustain the system if no one’s using it.
Usage is the lifeline
For Bitcoin to thrive long-term, it needs a bustling free market driven by real-world use, buying coffee, paying rent, and tipping online. In 2025, only a handful of merchants accept BTC directly, and volatility still spooks spenders. Yet, usage isn’t just about convenience. It’s existential. More transactions mean more fees, resulting in more miners and a stronger network.
Critics argue Bitcoin’s capped supply (21 million coins) makes it too precious to spend. But that’s a self-fulfilling prophecy. If no one spends, the fee model fails, and the whole system falters. Satoshi’s genius was tying security to activity, not dormancy. A Bitcoin that’s hoarded but not used is a ticking time bomb.
Conclusion
Bitcoin’s economic model isn’t built for HODLing alone; it demands usage to survive. Transaction fees are the endgame, and they only work if the network hums with activity. Satoshi didn’t dream of a digital vault; he dreamed of a currency that moves. Without that, Bitcoin risks becoming a relic, a cautionary tale of a great idea that forgot to get used. Fees or bust: it’s time to spend some sats.
Watch: Bringing the Metanet to life with Teranode
title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””>
