Brief History of „HODL“

teampresearch (30)in #presearch • 6 years ago

[classic “HODL chain” img src= https://t.me/presearch]

Whether you’ve been in the crypto space for a long time or you’re a complete n00b with no experience, there’s almost no way you have not come across one extraordinary term: “HODL”, or in other modifications HODLing, HODLer etc. Moreover, while most of you are probably familiar with what HODL means, let me briefly explain it to everyone who doesn’t. “HODLing” a cryptocurrency refers to the strategy of buying and holding it long term, which means that the person who “hodls” does not sell quickly or sell according to random, sudden market movements, especially when the markets are moving downwards, or also in longer-term bear markets. However, to best explain the word we will need to refer to where it originated.

So, let’s take a look at the meaning behind HODLing and the funny story of how this new word was born on December 18, 2013. At this point in early Bitcoin history, the price of BTC had first surged from $15 at the beginning of the year to an impressive $1,100 at the beginning of December 2013. But this all-time high was followed by a rapid and cruel price crash of almost 40%, that scared many crypto enthusiasts into panic selling. But not one exceptional individual with meager keyboard-typing skills under the influence, whose legacy is now known to us as HODLing.

The term HODL is in fact a misspelling of the English word “hold(ing)” by said particularly passionate and considerably inebriated crypto aficionado/a on the Bitcointalk forum who goes by the name of “GameKyuubi”. At the time, said Bitcoin-talker had no idea about how this very typo was about to make crypto-history and lay out the foundation for a whole new attitude among the crypto community - And that’s how the HODLING started.
If, in the future, our grandkids will take college courses on the historical development of classic memes and the beginning of the decentralization movement, GameKyuubi will certainly be mentioned in the annals of cryptonomics as a forward-thinking pioneer.

(If you have never read the original “I AM HODLING” post, I strongly advise you to do so because, well, it’s hilarious: https://bitcointalk.org/index.php?topic=375643.0)

HODLosophy – HODLING is more than not selling – it’s a mindset

GameKyuubi, in his/her almost stoic grace, was aware of his/her non-existent trading skills, or to put it as eloquently as he/she did initially, “pit pat piffy wing wong wang” those highs and lows of the infamously volatile crypto markets. Therefore, GameKyuubi stuck to the “know your strengths but also know your weaknesses” mantra with the iron fists of a whiskyfied Internet troll. By taking a strong stance against the siren fearmongers and “trading experts” accusing him of not having sold, GameKyuubi finished his/her short philosophical essay on crypto-economics and market psychology by stating that:

“In a zero-sum game such as this, traders can only take your money if you sell.”

This last sentence probably serves as one of the greatest lessons we can learn from wise grandmaster GameKyuubi. However, the more important thing to take away from his/her statement is that you should never let anyone else pressure you into buying or selling or any other important financial or life decisions. The crypto space can be very tough, relentless even. Nevertheless, it’s also a great place to learn many valuable skills that you can use not only in this space but life in general. Some of those virtues include: patience, making your own sound decisions, doing your own research, controlling your emotions (especially during periods of high FUD* and bear markets), discuss and debate with others without succumbing to tribalism, rumors or generally being manipulated by others.

*“FUD” - Another one of those special crypto terms that stands for Fear Uncertainty & Doubt

HODLING ever since

Since GameKyuubi’s original I AM HODLING post, five long years have passed (which is the equivalent of 50 crypto years). For many in the crypto community, HODLING has become a statement, a movement or way of life even. The HODL strategy of “buy-and-hold” is a widespread phenomenon throughout the crypto world. The “HODLers” are the ones who refuse to give in to market sentiments like FUD, rumors or the latest trends. If they believe in a project, they stand by it and don’t sell their coins/tokens in support of its long-term value rather than possible short-term gains or panic sell-offs. The patient HODLer does not chase quick and easy money but instead, puts his money where his mouth is, having faith that the true value of something will sooner or later also be adequately reflected by adoption and in the markets alike.
HODLing isn’t for those with “weak hands”, which is what panic sellers are often accused of. True-to-form HODLers are long-term investors and believers with nerves of steel, because - as we all know - this space can be unforgivingly brutal and sticking to your plan can be incredibly hard if there are chaos and freak-outs happening all around you, and your favorite Telegram chat-groups start to feel more like group therapy or anger management classes. Therefore, HODL(ing) has become a symbol of strength, patience, and endurance in the crazy world of cryptocurrencies. Although HODLing alone certainly is not enough to create a sustainable and beneficial future with valuable projects furthering decentralization and sound money (think of “BUIDLing”), we cannot imagine crypto without HODL anymore!

So, KUDOS to all the HODLERS for having faith in what you believe in and supporting your favorite projects long term!