Topic: Is HODL is a good policy? - page 2. (Read 525 times)

True. A man killed himself after he lost 60% when he buys Bitcoin at ATH (after he sold his house, cars, and other properties).

Who knows what will happen if he doesn't care about short-term price at that moment.

Its a good policy if you are not used to day/swing trading and if you are in a general uptrend.
Otherwise its a horrific policy that has seen ppl hodling down from all time highs to zero.
If you don't take profits, you get took.

The best policy would be to hold and not read anything about crypto for the next five years. Better for your heart and blood pressure, too.

Sadly, that would be just as difficult as to quit breathing for the next five years.

It's not an investment or a currency, it's freedom.
Never selling that.

I agree that OP got a point. Bitcoin must circulate. But I don’t agree with his reasoning.


They are able to pay me because people buy bitcoin using fiat, and spend those bitcoins on the site.


Probably not. I haven’t exchanged any into my fiat currency, but I’ve spent some. I’d prefer to spend my bitcoins directly to buy goods and services but that will depend on my personal situation, the price of bitcoin in fiat terms and how fast mass adoption is reached.

Yes, of course. RESISTANCE is also a wise way to get lots of profits with high selling prices, because the development of altcoin prices also increases at any time.

Well, OP got a point. Bitcoin must revolve market, It's simply a supply and demand argument. If the demand is high and the supply is low how would that certain campaign pay you in Bitcoin? Let me put it this way, you are currently in a campaign which is an established online gambling site, How does your campaign earn Bitcoin to pay you? They technically also sell (above those other service, sponsors, etc. that campaign do). So, at some point in time you are going to sell your Bitcoin, especially when you cash it out in your native currency. Everybody will sell there coins eventually.

That’s a contradiction again. For me earning bitcoin, like from the signature campaign I am in, nobody needs to sell.

What I have been doing is using it to buy things with and then immediately I use my online account and buy the same amount of BTC.

This way I feel like I am doing something positive for the BTC ecosystem and also I am not separating myself from what WILL be substantial raises of the value in bitcoin.

HODLing is a good idea, especially right now at under $10k, but help the system gain adoption by moving those coins around.  If you have a business, start accepting bitcoin for payments.  Boom! Instant HODLing! 

The 100% HOLD strategy hurts the Bitcoin ecosystem but people need to balance.
I mean, for example, I am actively using Bitcoin on a regular basis, but I also try to save some coins in case I have a hard time, some months I can some months I can't. It's like IRL when you try to save money with your saving account, sometimes you can, sometimes not.

If nobody sell how you will earn?
First you have to think clearly what do you think of Bitcoin ? A currency or a speculative investment tool?

If you think currrency, then there is no place for HODL.
If you think it is an investment product , then HODL is the worst investment strategy that we are recommending to each other. HOLDERs failed to take profits when they are supposed to. Investment should follow some investment principle not some mere speculations.

@Comino,@Elqui
I agree investment can be risky but they are not same as gambling. HODL do not make a good investment strategy at all.

If that means a long term game, then yes, Hodling is a great strategic. Not to panic, not to cash out, not to make quick decisions. But as a matter of fact, sooner or later you will sell

HODL has a good and bad effect for sure. it is great for altcoins specially when it only just begun and you think that it will be doing great in the future.

its like gambling, youll never know if the price will moon or just dump so its a risk.

I don’t see your point because your reasoning is based on a contradiction:

 
HODL isn’t opposed to earn bitcoin. It is opposed to selling, but you can keep earning and buying more.

If you earn bitcoin, like on this forum, there is a transaction sent to you every time you get paid. If you buy bitcoin, the same happens. So, miners get their fees and they keep working. Then, there are many people whom HODL but spend a small percentage of their bitcoin holdings.

Therefore, I see no trouble here.

HODL is very popular in Bitcoin world and word come into existence when a bitcoin believer  GameKyuubi   misspelt the word HOLD under the influence of alcohol urging fellow bitcoiners not to sell their bitcoin in the crashing market but instead wait for market to recover.

The misspelt word got the fancy of many and HODL stratergy born which simply means to hold your bitcoin in all circumstances. Ironically it is in total contrast with the situation where  laszlo  offered 10000 bitcoins for pizza.

Bitcoiners start popularizing the HODL strategy so much that it raise an important question whether it is a good stratergy or not. First of all,HODL is not a new concept, whenever the market tanks experts always suggest not to panic sell but advice to buy more of stock in cheap to average out and get more gains when market stabilize.

HODL as a concept or stratergy is not at all beneficial to bitcoin ecosystem. Bitcoin is a currency and currency needs to flow, be part of the transactions, involving more and more people using the currency.If nobody use it as a currency then it will just become a speculative asset. Technically Bitcoin network need transactions to keep the miners engaged because block rewards are going to half after every 4 years and Satoshi believed that earning from transaction fees will keep the miners incentivized in future.If there is no transaction fees for miner to earn then why miner will be supporting the network. If there is no network then there will be no Bitcoin, So HODL principle is basically against the Bitcoin network as well as the satoshi dream.

We exactly need a eco system in which we can earn the bitcoin, spend the bitcoin and save some for our future uses. It is similar system to fiat but instead earning in fiat we need to earn in bitcoin.This will hep us to constantly keep earning the Bitcoin and make us free from worry that what is the price of bitcoin against USD and we will be saving in a global currency. HODL mentality will not allow this ecosystem to be active.

In the end, by HODL you might have saved your investment in troubled time but if you think instead of HODL if you tried to average out your Bitcoin or just doubled up then you will be more happier and have more Bitcoin to transact.

So say no to HODL instead try to earn it and spend and  let the currency keep flowing.


Disclaimer: This is the original post by me though I first posted it in Fit to Talk Board.
https://fittotalk.com/english-talk/index.php?topic=183.0