Discussion about the HODL concept - Your opinion is needed
HODL - GOOD OR BAD FOR CRYPTO?!
Hello my dear Steemians,
Unfortunately I didn't have the chance to write a post yesterday and the day before that, but today I would love to have an educating and interesting discussion with everyone involved in cryptocurrency... If you are reading this article, this includes you!
I would like to hear your opinion about the HODL concept/idea and specifically the effects of HODL on the cryptocurrency market.
Basics: What is HODL?
If you are new to Bitcoin and the cryptocurrency space, you may not know what HODL means. Below you will find a short explanation:
“HODL” was originally a typo which has now popularly earned the status of a humorous backronym:
- “HODL” – “Hold on for dear life”
In other words HODL means not selling your cryptocurrencies (as long as you are on a loss).
Why are we having this discussion?
The term HODL is being used everywhere in the cryptocurrency space and is widely known to crypto enthusiasts, like myself. HODL has become a reassurance for a lot of people: "Cryptocurrencies are crashing... No problem my friend, just HODL and your money will be back soon!"
However yesterday I had a short discussion about this on Social Media and it seems opinions about the consequences of this term and how this concept actually affects the cryptocurrency market differs.
I have to say the opinion of my conversation partner really confused me, I have already discussed our arguments with a few friends; they think we are both right in our own way. Now I wonder what you think...
The subject
So on Facebook I came accross this video, this is where the discussion started:
Description of the video: A very short video about HODLing
I didn't really agree with this visualisation of the HODL idea, in my opinion HODL was always very good for cryptocurrencies and prevented our beloved coins from collapsing. So on this video I reacted the following:
- "You do realise the HODL concept keeps cryptocurrencies from crashing? Telling people not to HODL is basically increasing volatility and increasing the possibility of bigger corrections..."
A person whom I will not call by name answered the following:
- You do realize holding creates more volatility? If we held 80% of the coins the whales trading the remaining coins could manipulate even easier and also when there's a lot of holders the crashes will naturally be more brutal.
Your opinion
As I still find it unclear who is right in this case, I would love to hear your opinions... Seriously please enlighten me Steemians, what are your thougths on this?
Is the HODL concept good or bad for Cryptocurrencies in general?
Ofcourse I understand that trading efficiently is more profitable than HODLing your cryptocurrencies... but isn't the HODL concept the main factor why we didn't crash 80% or 90% at the end of 2017? We saw a correction happening of around 60%, this could have been a lot worse if there was no crypto community shouting HODL all the time... Right?
Thank you for reading.
Feel free to upvote, comment, resteem and/or follow my blog @maxdigi if you liked this post! I greatly appreciate your support.
Cheers,
MAXIDIGI
Hey mate. Good to see you posting.
Regarding #my2cents on HoDL - don't consider listening or taking advice from people on this topic. No one can actually predict how this will go. Too much variables...
🗝️🗝️🗝️ - What you should do instead is decide for yourself if you believe in concept of crypto currencies, block-chain. Do you believe in their potential (what they can do to industries) and then decide which ones you believe the most...
... & Base your decision on that. Because HoDL means not holding for days, weeks but for months and years to come, but most people looking to cash in and out fast so they are complaining.
I hope it makes sense🤔
👊#hodl 👌
I appreciate your fast answer Kurt, I agree with you and I have always been really positive about the HODL concept. But I have to say the answer of this guy got me pretty confused...
I mean come on if 80% of the coins were not sold, how would the price come down a lot harder? This makes absolutely no sense in my mind since in this case only 20% of the coins would be sold...
I find it interesting to hear others opinions on this so thank you for your comment, I believe in crypto and I will HODL my coins, but apparently not everybody has the same idea of HODL and how it actually affects the cryptocurrency prices... I mean seriously it's simple logic right; if you and a lot of other people don't sell their crypto, the price won't go down that much.
I think HODL is key in the stock market and if you were involved in the 2013 bitcoin crash you would be thanking your hodling ways. I think Hodl doesn't help the whales at all it only helps you when you are smart enough to know you can't time the market. Weak hands are what help the whales. Many more weak hands than holders. 100% hodlers = no whales.
Thank you Gabby, so basically the argument of this other dude makes no sense right?
I totally agree with you, whales profit from the weak hands who sell in panic and sell their cryptocurrencies for low prices... If the market HODLs; whales would be forced to buy in at higher prices.
Thanks for confirming my thoughts, I hope we are right about this ;)
The best coins end up in peoples portfolios. It's the way it should be.
The only time hodling will be an issue is when the cryptocurrency selection shrinks (and it will in the distant future) to reveal the most supported tech, coins, and platforms.
By shrink I mean most coins, platforms and tech will prove to be failures and no longer have any value or usage. This means more will hodl the majors and leave scraps for other investors.
Or that's my opinion on hodling. It's cool while supply and ideas are still abundant.
Glad to see another person in favor of the HODL concept although I do agree it makes no sense to HODL coins without a future. As I discussed in a previous article investors shouldn't be hoping for miracles; only the best cryptocurrencies will survive in the long term.
Bro , According to me if the coin you're holding is a coin with so much repo then it's better to hold ( check it's rank in coinmarket cap) . But if the coin is of very low rating then risk factor would be higher , but who knows it might bounce rapidly and give you more profits than big coins . It's all about the psychology of people that runs the market :) . Thanks for asking the question :)
Thanks for your opinion bro, I totally agree with your statement. But what about the statement of this guy saying that if more people HODL the crashes would be more brutal? This makes absolutely no sense to me. What is your opinion on this matter?
Hey @maxdigi
My opinion on the matter of HODL or SELL.
As long as your initial investment has been taken out, what are you really losing? Cryptocurrency is a high risk you really need to enjoy the lows as much as the highs. For me: I'm HODL the technology behind some of these cryptocurrency is simply amazing and it's the way of the future.
Thanks.
-Dan
Thanks for your comment Dan, I agree with your opinion. But we should all be aware that HODL doesn't work for every coin, some shitcoins will never go up again... All I'm saying is HODLers shouldn't be waiting for miracles to happen but yes the cryptocurrencies with great projects are definitely worth to HODL.
If you have faith in a coin that you are holding with SOLID projects and potential for growth to solve real life issues, you should hold those coins for the long haul. In other words, you believe Litecoin will be mass adoptive by mainstream and being used in the future for real life transactions in 2-3 years, then you know as long as you HODL, when a coin reaches a specific goal price, that's when you can choose to take most of your profits in one go! Sure you do not profit at all in the short term but one should buy more on the dips and sell them when the prices spiking and you think it may be reaching its peak before a correction happens. (IN other words, don't have to HODL 100% of your coins if you want to take in profits and buy back in when it dips low enough.) Hope this helps! :) Upvoted! Great post!
Waiting for ATH, I will start selling slowly at that point :) I hope we can reach new highs this year, I just posted an article with 5 amazing reasons why this could still become an amazing cryptocurrency year!
Thanks for your comment denox, really appreciate it. HODL!
No problem! And I will be checking out your post shortly. :)
When you don't sell, you don't lose.