HODL mentality destroys the currency aspect of Bitcoin - page 4.

Bellator

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Quote from: SixOfFive on March 23, 2018, 07:33:15 PM

Rightly said, HODL has destroyed the real purpose of Bitcoin. BTC originally invented as the alternative payment source not as a Financial saving instrument. Rising Price of BTC made people forget the concept behind it and start buying and HODL it to earn huge profit.

I agree with that holding bitcoin vanishes its purpose,we practically used it for long term investments,thinking that it would reach more higher than today.People take advantage to hold and buy since the price goes dip and hold for long.Instead of using it in paying online transactions of different goods and as payment of bills.
I just thought that people had already opened up some ways inorder to make bitcoin as a useful tool most specially on making profit.Bitcoiners used to go with the flow on the current usage of bitcoins.People mine,trade,hold and make it as a form of payments.

Menawi12

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Quote from: Canis Majoris on March 23, 2018, 08:06:34 AM

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

I think its about speculation on cyrptomarket. People want to make profits from their speculation and thats normal because people want doubling their money. Bitcoin or crypto now unspendable to purchase but with crypto market capitalisation growth, price must be rising too

Scallywag

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the volatility is what attracted people to bitcoin , 99% don't even care about the uses it has/can have. so this what you get , a market driven by greed. that isn't solely the reason , bitcoins own scalability and transaction time problems certainly did their part in that.

bitkanu

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Quote from: markk94 on March 29, 2018, 07:38:03 PM

kinda agreed with your point in the last of your post. the currency aspect of bitcoin kinda forgotten these days because of the HODL mentality like said before too. i think that there is HODL mentality because of the bitcoin price had gone too high. because of many people that greed of much amount of profit and many people heard from others how beautiful its profit. then, HODL mentality born.

Hold mentality also can be found on another currency like USD, GBP, and many more but the interesting fact is that none of them get affected. Bitcoin as a currency is divisible into decimals amount so why worry so much?
Even if the price of bitcoin could just go to 1 million dollar, you can still spend an amount equal of $1 by using bitcoin, so there's nothing to worry.

markk94

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kinda agreed with your point in the last of your post. the currency aspect of bitcoin kinda forgotten these days because of the HODL mentality like said before too. i think that there is HODL mentality because of the bitcoin price had gone too high. because of many people that greed of much amount of profit and many people heard from others how beautiful its profit. then, HODL mentality born.

Harrisonimo

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Well, HODL is a form of investment and I don't think it destroys the Bitcoin but rather it will strengthen its value. There are also the volume in circulation that is actively being traded, making the market alive.

Leonia-Ridinger

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Yes, great point! The catch is that for something to become a currency, it has to have much much lower volatility than bitcoin has now. I'm not going to buy coffee for bitcoin if I can see that it can possibly 1) buy 2 coffees using the same amount in a week, or 2) I could have bought 2 coffees for the same amount a week ago. When the price stabilizes then it will be much more viable as a method of payment. Although to be fair, I do use bitcoin as a method of payment every now and then, by converting fiat into btc, and buying the thing right away, so it doesn't have time to change value significantly. That works, but it's cumbersome, can have a lot of fees and of course, that's not the point of crypto. So, I guess we'll be waiting for some big institutional money to come into crypto, which will cause more adoption, which will cause the price to stabilize in the end after having a big climb

ceferov

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There are better crypto currencies for daily usage but everyone knows that BTC holds value of cryptos as gold. I it's normal that new technology gets so much interest but people should stop making money on it really and work on it to make it really usable

Razick

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It is true that holders do not spend coins as they just buy and wait for prices to go back up and then sell. A lot of people do not understand that using bitcoin as a currency would actually help increase its value. When you can buy and sell with bitcoin and do all sorts of transactions with it, then that means it is useful and people would want to get in which would increase the price.

Andrej Peiboski

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This is not a problem of mentality, but simply to make the choice that - from an economic point of view - is considered more convenient.
And at the moment it is better to preserve what one has.

Canis Majoris

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Quote from: harizen on March 23, 2018, 01:25:32 PM

Above all of your point of view, may I know if majority of bitcoin users really HODLing their coins? If you will only based on the statement or discussions here in the community or whenever you see some on social media then I don't see any sense here. As if those HODL coins by an average player scan make an impact on the whole bitcoin volume on the whole as they hold. If HODL mentality kills the currency aspect of bitcoin then why it isn't happening now or before? Make sense.

There is enough what is called circumstantial evidence. Indeed, you may disagree but the consensus has it that I'm right, after all. Apart from that, I've written everything in the first post. If people buy bitcoins on exchanges, it is unlikely that they will be spending them en masse. So the only option that remains now when the prices are falling is HODLing. Just claiming that something is not the case on the basis there is seemingly no real stats is not much better until you yourself provide these "real stats". Otherwise, it is a moot point in general. Unless we look at the circumstantial evidence, of course. For example, all big wallets are known, and coins there are not moving anywhere, so they are HODLing.

MCVXYZ

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Quote from: Canis Majoris on March 23, 2018, 08:06:34 AM

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

I think the HODL mentality doesn't kill the currency aspect of bitcoin,But partly I agree with you because we need processes like this,People must start using bitcoin everyday for their purposes,it will be the best way for price rising and I also want to say that this process is not connected to this mentality,It sounds a bit antagonistic but its my opinion.Today Its obviuos and already tendence as for goverments as small business investors to use bitcoin as for their payment system and therefore bitcoin has a devloping nature,Today It may not be as comfortable for people to use it for their everyday purposes but I hope it will be in the near future.

Kambal2000

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Quote from: Canis Majoris on March 29, 2018, 02:00:02 PM

This is not necessarily so. If people could actually spend their coins on goods they need or services they require, it may in fact be a viable option. Even though that would be a purely psychological thing, of course. I mean spending crypto directly would be effectively the same as selling the coins for fiat and then spending the proceeds, but it would feel completely different. You wouldn't have to go through all the psychological stress and suffering of accepting your losses, so ego wouldn't be hurt very much, if at all.

All of us here have different perspectives and thinking in life, if people will still hold their bitcoin of course that is what they will gonna advise to some people, but if people will not hold due to some reasons then it is their decision, they are free to do what is best for them.

Canis Majoris

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Quote from: Ranly123 on March 29, 2018, 10:15:22 AM

Quote from: Canis Majoris on March 23, 2018, 08:06:34 AM

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Basically we invest in order to earn. It would be a bluff if you are going to invest and loss everything. No matter what you say, he mindset of every investor is to have profit in their investment. So how can they profit in their investment if the price is going down? The answer is HODL. That is how you can benefit from it.

This is not necessarily so. If people could actually spend their coins on goods they need or services they require, it may in fact be a viable option. Even though that would be a purely psychological thing, of course. I mean spending crypto directly would be effectively the same as selling the coins for fiat and then spending the proceeds, but it would feel completely different. You wouldn't have to go through all the psychological stress and suffering of accepting your losses, so your ego wouldn't be hurt very much, if at all.

Ranly123

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Quote from: Canis Majoris on March 23, 2018, 08:06:34 AM

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Basically we invest in order to earn. It would be a bluff if you are going to invest and loss everything. No matter what you say, he mindset of every investor is to have profit in their investment. So how can they profit in their investment if the price is going down? The answer is HODL. That is how you can benefit from it.

nightfury

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Well, if hodling has helped the price of bitcoin to slide down deeper, then there's no problem with that since we already know bitcoin is way more than an investment than what it is really its purpose as what is being written on Satoshi's WP.

Canis Majoris

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Quote from: xdrpx on March 23, 2018, 01:02:48 PM

There was a time when there were advertisements on /r/bitcoin and people used to consider Bitcoin as "Magic Internet Money". There were discussions on Bitcoin transaction fees vs that of Western Unions, people performing micro transactions and tipping each other (Changetip) and discussions on how remittances and sending Bitcoins via SMS would be possible. All of these changed when the price of Bitcoin started rising sharply and countries Governing bodies started classifying Bitcoins as cryptoassets or some form of "stock" or "Derivative" to trade as. This switch in thinking and rise in price (sometime in 2016-2017) lead people to "HODL" through it and it's a common technique used for a "Get Rich Quick" cycle. I think the current dip is price is an excellent price correction and I feel when there's more stability in price, there's lower transaction fees and less panic transactions happen. This should allow people to transaction more and I believe as long as the price of Bitcoin comes into factor (with a possibility of a rise) there's always the possibility that people will save rather than spend.

Missed this post somehow. All in all, I agree with your point, and in fact I remember the overall message back then even though I hadn't been much interested in crypto myself at that point. Honestly, your train of thought resonates well with my own understanding and ideas. We may need lower prices - maybe back to 3 digits - to make Bitcoin great again, so to speak. Great as a currency, not as a vehicle for speculation, obviously.

keycellko

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Well apparently, bitcoin is not anymore perceived as a currency. If you try to ask people why they want to have bitcoins, most of them want it because it increases in value overtime. You cant blame them. Basically, thats the marketing strategy of someone asking people to invest in bitcoin. Once you invest in bitcoin, that is the mentality you get. The spendable and usable aspect of bitcoin is almost always is ignored.

goku1525

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Quote from: okissabam on March 29, 2018, 09:40:31 AM

The reason why people always advice everyone to hold their coins is that they want greater profits and that’s what destroys the aspects of bitcoin. They all are longing for huge gains and that’s the irony of some holding their coins especially Bitcoin too.

We have different perceptions and different mentality how we can get huge profit on bitcoin wether a long term or a short term, all was based on prices they hodl their bitcoin because the prices is on dump and to avoid losses of coins. A deeper minded person always bring positive result in a given period of time.

Netnox

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Quote from: okissabam on March 29, 2018, 09:40:31 AM

The reason why people always advice everyone to hold their coins is that they want greater profits and that’s what destroys the aspects of bitcoin. They all are longing for huge gains and that’s the irony of some holding their coins especially Bitcoin too.

And what is wrong with that? Everyone wants good returns from their investment and the same goes with crypto-currency investments as well. Only the losers and jealous individuals will be having a problem with that.

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