Topic: HODL mentality destroys the currency aspect of Bitcoin - page 5. (Read 1012 times)
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.
Couldn't agree more, Look what happens in Japan.
That is right . This way the essence of bitcoin and the reason why it was inceptioned is fading everybody . Everyone aims too hold it until it gets a good price and then sell it for a good amount of money . The major reason behind it is that most of the people don't have the other option of holding it and using it in place of money . Then why would they hold it if it is of no use ? Fiat and other legal factors won't let bitcoin fulfill the reason of its establishment .
We really can't force people to do what we ought to think was or is right in the first place. It's a safe
assumption that bitcoin is a victim of it's own success. Holding however has it's pros and cons, well
pros mostly for the time being. Prices decreasing offers little options and sometimes to no avail we
sell low. But it wasn't always like this back then, when bitcoin was just starting nobody ever thought
that it would be this big and profitable. Prices were considerably unsatisfactory and growth was
a matter of speculation and personal belief. But it did overcame and push through expectations and
that was it's initial success, people saw what bitcoin was capable of and in that innate moment
bitcoin grew out of it's shell and evolved. It may never fulfill it's original reason fully but maybe it's
just bound for something better and bigger.
I disagree as holding Bitcoin or other crypto currency is the most effective technique to earn from investment. One should not take bitcoin investment as a short period plan; rather a long period plan with it will bring fruitful result.
Holding of the bitcoin is no doubt one of the best thing to do and that it can surely help you in making of a huge amount of money as well and that you can get a very good profit by doing so. Bitcoin is most effective when you plan to hold it for longer period of time and that it can indeed help you in so many ways as while holding, you can also manage to do some other business as well. 
Yeah you said it right hodling and keeping Bitcoins for investment is not a joke because it is opposite on what Satoshi the founder and Bitcoin he want it to be.
It may sound a bit harsh, but Satoshi's 'vision' doesn't matter anymore, and it has been like that for years. Sad reality but we cannot control anyone they can do whatever they want with their Bitcoins.
Why sad reality? Bitcoin offers people the freedom to do whatever they think is needed with their coins. Even if it's to buy drugs with, it's their choise, and their value.Though they really don't understand or maybe they just grab the opportunity where potential in investment industry is profitable nowadays compared to having it spent to goods or services.
I think you don't understand how things work here. People aren't obliged to use Bitcoin in one specific way. If people see only value in Bitcoin as an investment tool, then it's their choise. If people want to hold Bitcoin as long term store of value tool, then it's their choise. People should understand that every form of usage, is allowing Bitcoin's utility to increase, and so does its price.If there were no people holding their coins, the price would likely remain far below the $1000 level for ever. If there wasn't a thriving altcoin market, which makes sure hundreds of thousands, perhaps millions of Bitcoins, remain off the regular Bitcoin market, we wouldn't even manage to break through $500 and maintain it for a longer while. Be careful with what you guys wish for.
Once bitcoin will go mainstream, there are chances of it becoming stable and then people will use it like currencies are. But with a prediction of 30k dollars, the best is to buy bitcoin now and hold it.
You offer a perfect example of what is called a non sequitur.
You offer a perfect example of someone who doesn't understand something so therefore thinks it is illogical.
High price for genuine jewelry doesn't mean that people buy it for the purpose of investing.
I'm not saying they buy it for investment but that the choice of precious metals and gems performs that function. If they just wanted it for ornamental purposes why do they pay hundreds of times the price they need to?
What I am saying is the reason jewellery has been made from gold since time began is because of its limited supply and therefore its function as a store of value.
It is simply pointless from an economic view-point. Those who are investing in precious metals buy coins and bars.
Actually, serious investors will do it through ETFs as that makes much more sense if viewed purely from an economic standpoint. But again that misses the point. The only reason there is demand for gold through jewellery is because of its function as a store of wealth.
Or do you seriously believe that when two people marry, they buy gold rings for investment purposes?
Do you seriously think that is what I'm suggesting?
Note that I don't reject the fact that high demand for gold and low supply of it account for the high prices of this precious metal.
So you understand part of the picture.
But the demand comes mostly from the glamor and personal adornment industry, but that has nothing to do with investing in precious metals.
And that industry only exists because gold acts as a store of wealth.
In fact, I wonder if bitcoin has changed the way or the end goal. After the success and especially in 2017. bitcoin value is reversed when constantly encountered obstacles from communication, facebook, google, mtgox ... We all know that, Hold is the most beneficial thing for business. Because of the nature of the supply is dispersed and waiting from the miners. That is the right business perspective and profitability is the goal of all. It will not affect the bitcoin characteristics.
I decline to accept this attitude as "the right business perspective", let alone "profitability for all" aspect of it simply because it is impossible for everyone to be or stay profitable in speculation. Bitcoin - as well as other cryptocurrencies - is essentially a zero-sum game as told by many and many times. And as I explained in OP, the HODL mentality is in fact quite detrimental for the long-term success of the whole crypto scene even though it may provide transitory, short-lived benefits for speculators and short-term investors.
In fact, I wonder if bitcoin has changed the way or the end goal. After the success and especially in 2017. bitcoin value is reversed when constantly encountered obstacles from communication, facebook, google, mtgox ... We all know that, Hold is the most beneficial thing for business. Because of the nature of the supply is dispersed and waiting from the miners. That is the right business perspective and profitability is the goal of all. It will not affect the bitcoin characteristics.
I'm sorry but that claim has little, if anything, to do with reality. People buy jewelry exclusively as ornamentations such as rings, chainlets, earrings, necklaces, etc. In fact, this is the very definition of jewelry. For investment purposes people buy gold bars and coins because jewelry is not very useful as a store of value. When you buy a piece of jewelry, the price of gold in it amounts only to a certain percentage. It is mostly craftwork, anyway. And if you decide to sell it, you won't be able to get the purchase price.
If that was true then imitations made with non-precious metals and gems would be valued equally. What I said is the reality. Gold derives its value from finite supply and the fact you can't fake it, just like Bitcoin.
You offer a perfect example of what is called a non sequitur. High price for genuine jewelry doesn't mean that people buy it for the purpose of investing. It is simply pointless from an economic view-point. Those who are investing in precious metals buy coins and bars. Or do you seriously believe that when two people marry, they buy gold rings for investment purposes? Note that I don't reject the fact that high demand for gold and low supply of it account for the high prices of this precious metal. But the demand comes mostly from the glamor and personal adornment industry, but that has nothing to do with investing in precious metals.
I'm sorry but that claim has little, if anything, to do with reality. People buy jewelry exclusively as ornamentations such as rings, chainlets, earrings, necklaces, etc. In fact, this is the very definition of jewelry. For investment purposes people buy gold bars and coins because jewelry is not very useful as a store of value. When you buy a piece of jewelry, the price of gold in it amounts only to a certain percentage. It is mostly craftwork, anyway. And if you decide to sell it, you won't be able to get the purchase price.
If that was true then imitations made with non-precious metals and gems would be valued equally. What I said is the reality. Gold derives its value from finite supply and the fact you can't fake it, just like Bitcoin.
Gold has more than enough real value and utility, for example, as jewelry. If I'm not mistaken, over 50% of all gold produced annually is used in jewelry across the world. Apart from that, such countries as India, China, and Russia are ready to buy massive amounts of gold whenever its price declines a bit. In fact, only around 15% or so of all gold in the world is held by central banks and governments. In other words, there is real demand for it which supports its price at pretty constant levels.
Gold's only utility beyond a store of wealth is as a shiny pet rock. People buy gold jewellery precisely for the reason that it does store wealth. It is easy to resell and recover your investment +/- change in gold price.
I'm sorry but that claim has little, if anything, to do with reality. People buy jewelry exclusively as ornamentations such as rings, chainlets, earrings, necklaces, etc. In fact, this is the very definition of jewelry. For investment purposes people buy gold bars and coins because jewelry is not very useful as a store of value. When you buy a piece of jewelry, the price of gold in it amounts only to a certain percentage. It is mostly craftwork, anyway. And if you decide to sell it, you won't be able to get the purchase price.
Gold has more than enough real value and utility, for example, as jewelry. If I'm not mistaken, over 50% of all gold produced annually is used in jewelry across the world. Apart from that, such countries as India, China, and Russia are ready to buy massive amounts of gold whenever its price declines a bit. In fact, only around 15% or so of all gold in the world is held by central banks and governments. In other words, there is real demand for it which supports its price at pretty constant levels.
Gold's only utility beyond a store of wealth is as a shiny pet rock. People buy gold jewellery precisely for the reason that it does store wealth. It is easy to resell and recover your investment +/- change in gold price.
There are striking similarities in the reasons there is demand or gold and the reasons there is demand for Bitcoin.
It has happened over a much longer timescale with gold but there are also striking similarities in the charts.
https://www.tradingview.com/x/Z0AO8pk7/
From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.
So by that logic, gold has limited real value as it has limited real usage and the amount of gold being held in reserves by central banks makes gold more susceptible to liquidity storms.
Gold has more than enough real value and utility, for example, as jewelry. If I'm not mistaken, over 50% of all gold produced annually is used in jewelry across the world. Apart from that, such countries as India, China, and Russia are ready to buy massive amounts of gold whenever its price declines a bit. In fact, only around 15% or so of all gold in the world is held by central banks and governments. In other words, there is real demand for it which supports its price at pretty constant levels.
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.
Apparently, the HODL mentality kills the currency aspect of Bitcoin.
Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.
From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.
It really comes down to utility vs price, holding is good for the price but it harms the potential for bitcoin to have a high utility. The holding contributes to speculation which leads to wild price swings that make bitcoin near unusable as a currency and limit its utility. Without some utility holding will become a pointless and useless exercise because there will be no demand.
And we seem to have already reached the point of saturation from where we can only roll downhill with minor rebounds and reversals. However, we can't deny the fact that crypto is quite useful in payments across the globe. Everyone knows its advantages and benefits, so there's no need to repeat them. It is quite possible that the most of Bitcoin's current price is due to plain speculation but the transactional utility is real and it won't go away just because of price hitting the floor. That thing accommodates at least some room for hope.
That's one thing that has always worried me about bitcoin in terms of an investment. It makes no difference from a utility perspective if bitcoin costs $10,000 or $1. As long as people are still converting fiat to btc, then sending btc and then converting the received btc back in to usd. They'll just send more or less bitcoin. The only real driver then for the price to increase is that there's so much demand and some people take advantage of that by holding.
In other words it only means that trading would be no longer helpful? i guess this is where it will be going then, but to some point i agree with you guys. Most of the times when people asked what to do in every crucial situation in the market, they will just say HODL for it. At some point yes it has good impact, while some people keep on holding and limited supply of bitcoin are circulating in the market, more and more the demand will rise, and as of now that there are new investors who only knew bitcoin recently, and it makes the market more competitive.
Transacting in bitcoin is what's important, because then the demand is from a utility perspective instead of a speculative one. If there is no use case and instead everyone held, there would soon be no demand for bitcoin other than speculative demand and that would quickly disappear as well. There does not need to be a huge amount of utility but some amount is pivotal, gold is an example of this, for the most part it's fairly useless but there are some use cases and so the holding mentality mixed with the limited demand for its utility is enough to keep the price trending upwards.
I think just the opposite because you can't even imagine what amounts of fiat money is not being used as a cash. It helps BTC's price to be on a certain level.
That is right, but we cannot blame people who wants to hold bitcoin since that is the best potential way for them seeing the value of coin, we cannot control them besides all of us here wanted to have high bitcoin value.
I think just the opposite because you can't even imagine what amounts of fiat money is not being used as a cash. It helps BTC's price to be on a certain level.
I think yes because if you see the many people hold the bitcoin for many years and the value raise up to higher than $20,000 or more the currency possible will appreciate because they are hardwork and patient.
The statement was a little different but still you are right in your opinion too. As people are continuously working in bitcoins. Some of them are holding bitcoins even from last 3 or 4 years and some legends are saving them from 5 years and more. All these traders or holders will be getting maximum of profit from bitcoins as their patience and work should be appreciated, and they will be achieving this.
Well, your submission is not far from the truth and that is the only factor that will help grow the market value of bitcoin not doubt.
I think that only positive information movement around Bitcoin can increase the demand for this coin, and it is tantamount to increasing its price. Well, while the popularity of Bitcoin is below the level, When it was back in 2017.
Holding is good, i do it also with my fiat savings. But i do spend my crypto on goods also 
When i buy something from friends or other people, i always try to make the transaction in crypto, i love it
When i buy something from friends or other people, i always try to make the transaction in crypto, i love it Yeah you said it right hodling and keeping Bitcoins for investment is not a joke because it is opposite on what Satoshi the founder and Bitcoin he want it to be.
It may sound a bit harsh, but Satoshi's 'vision' doesn't matter anymore, and it has been like that for years. Sad reality but we cannot control anyone they can do whatever they want with their Bitcoins.
Why sad reality? Bitcoin offers people the freedom to do whatever they think is needed with their coins. Even if it's to buy drugs with, it's their choise, and their value.Though they really don't understand or maybe they just grab the opportunity where potential in investment industry is profitable nowadays compared to having it spent to goods or services.
I think you don't understand how things work here. People aren't obliged to use Bitcoin in one specific way. If people see only value in Bitcoin as an investment tool, then it's their choise. If people want to hold Bitcoin as long term store of value tool, then it's their choise. People should understand that every form of usage, is allowing Bitcoin's utility to increase, and so does its price.If there were no people holding their coins, the price would likely remain far below the $1000 level for ever. If there wasn't a thriving altcoin market, which makes sure hundreds of thousands, perhaps millions of Bitcoins, remain off the regular Bitcoin market, we wouldn't even manage to break through $500 and maintain it for a longer while. Be careful with what you guys wish for.
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