Buying Bitcoin is like a phase out of Faust. You’re cursed if you do it and damned if you don’t. On the one, if you buy, you belong to the elite that has Bitcoin and you are not on the outside of this modern digital gold hunt. On the other hand: What the hell are you going to do?
Well, I never had this problem, because as a reporter I never invested in cryptocurrencies. But a tip in the Bitcoin community I have always stayed as probably the only way to not go crazy when you have bought some digital coins that are constantly rising in value until finally they stop-and this is: HODL.
It’s an anagram of the word “HOLD” and it’s possible that you’ve seen this meme somewhere on the internet, if you’re watching Bitcoin. It’s a mantra, no matter if the price of the Bitcoin rises or sinks – don’t sell, wait. As he pointed out on Twitter a few days ago Neerajh Agrawal, the Coin Center, the post on the Forum Bitcointalk, with which it all began, becomes four years old. It was made by a man named “GameKyuubi” and the download with the anagram became immediately after a legendary longer crash in the price of the bitcoin in December 2013. It was titled, “I AM HODLING”.
HODLing simply means not selling your coins, even when the price falls or is swallowed. It’s about the long-term strategy and not being misled by the promise of fast money, if you spend all day, every day with the look stuck in the price tables, trying to guess the best time to buy or sell. “Because I’m a bad investor and I know it,” wrote Gamekyuubi. “In a zero-sum game like this, investors can only take your money if you sell.”
Basically, if you bought Bitcoin, bear in mind that you’re not a banker, just because you’re a bank on your own and if you think you’d be very good at investing small caps, then you’d already be rich.
The main thing is that those who buy Bitcoin – that is, they buy listings in a digital ledger – bet that this ledger will be used for something someday. But no one knows what that will be, if anything. It seems increasingly less likely that the ledger and its currency will be a way to pay for things like hosting services, gift cards, domain registration, vpn services as well as tangible products such as furniture (from overstock) and clothing.
Now a group of cryptocurrency fans are comparing the bitcoin with an investment in a commodity, such as a barrel of oil. From this one understands that no one has any idea where this is going to go. You can spend the whole day trying to figure out the phase and how to make a profit or just don’t worry. I know which sounds better.
In addition to peace of mind, there are other reasons not to sell. One argument is that one day you can sell and become surprisingly wealthy, which, OKAY, okay, I don’t know.
Another is that if you do not sell, the Bitcoin market remains stable, as you do not contribute to the massive clearance that causes price declines. Finally, the most fanatical of cryptocurrencies will tell you that the block chain does not care about the value of the money document and neither should you – all that matters is having some Satoshi (the smallest Bitcoin subdivision) after the revolution of Bitcoin, where everything is counted in BTC.
But I think the main thing is that you don’t get nervous. That’s true, whether you have Bitcoin or not.