Bitcoin is fundamentally flawed, right?

I have been invested in Bitcoin since 2017 and I always saw it as a store of value / unit of account. But recently I’ve seen a lot about Bitcoin’s potential and how “unlocking Bitcoin” will happen when it becomes a medium of exchange. So what I’m hearing is that one day, if I buy a pizza as comfortably and easily with Bitcoin as I do with USD now, Bitcoin will have reached its potential.

In my opinion, this does not make sense in the current climate.

People are accumulating Bitcoin and don’t have plans to sell it. Michael Saylor at MSTR is saying he will never sell their Bitcoin and people tout having cold wallets they can forget about for years.

That makes sense to me - if you have an asset you think will increase in value, you want to hang onto it.

The problem is, you are taking an asset with a finite supply off the market. That will continue to drive supply down and the price up. That is great for everyone with Bitcoin holdings, but not great for the “medium of exchange” angle of this.

I think the cognitive dissonance with Bitcoin has reached a fever pitch, and I’m not sure what I’m missing.

People will continue to hoard Bitcoin like digital gold. The transaction flow will decline and Bitcoin’s potential to be the currency of the future will never be realized because it will never be a wide scale medium of exchange.