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RE: HODLer Communities: A New Type of Trading Group That Can Change The Game
HODL will not work over the long term, simple economics. If everyone agrees to never sell, eventually the incentive for one party to cash out and sell everything will be too big.
In the start this is okay because people can just buy said party's share, but eventually there is no money left to buy for and then the bubble collapses.
This is the reason why a duopoly in the normal world would never work over the long term. At some point the incentive to break the agreement, dump the price and take all the customers is too big.
I would stay away, there is going to be some bagholders.
It will work since people don't ever have to sell coins as they can get residual income from masternodes.
I see that on Chaincoin this became a huge success. But on a different example we might see whales entering and dumping on people, causing massive panic to make even people with masternodes panic sell. Do you think that's a possibility? I am really wondering about it. Because if risky issues get solved, these communities will bring huge benefits to the cryptocurrency market, and blockchain technologies in general.
The incentive not to cash out is the masternodes. They earn you an income, yet your investment retains it's value.
That sounds like a risky prospect, you'd still need to sell the income from masternodes to cash out. It's hard to inflate the price above the market value over long term. But we'll see :)