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.
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Cheers,
MAXIDIGI