Bitcoin Forum

If you don't know what hodling is, you need to read this thread (https://bitcointalk.org/index.php?topic=375643.0) first.  When done chuckling, come back here.

I think that anyone that believes in cryptocurrencies should consider hodling forever, and never cash out to fiat.  Maybe you want to speculate on some alts here and there, and that's fine.  But keep it in crypto.

Why?

Because long term, you will be able to buy with cryptocurrencies anything that you could buy now with fiat.  And by NOT buying fiat, you are strengthening your crypto hodlings vs fiat.

If you do cash out to fiat

1) You are likely to get burned when the market turns around and you don't buy back in quick enough, as so many have learned.
2) You are weakening the value of crypto for current holders, and thus undermining your future self if you do intend to buy back in.

Still not a believer?  Have a look at this chart:    ( from thread (https://bitcointalk.org/index.php?topic=366214.0) )

https://i.imgur.com/XBIAG55.png&t=535&c=GktO9rG4vTIYzw

So when I look at that chart, I say... well I should just hodl for at least the next 3 years.  And by then, I bet I could buy most anything with BTC.    So why cash out....  ever?

So I'm hodling and buying, never selling.

But there is more.

I am also SPENDLING.  When I spendl, I am keeping crypto within the crypto economy.  An in exchanging it for an actual good or service, I am distributing the crypto more widely and into more hands.  This further increases its value, as more people can then hodl and spendl.  yay!    But the key thing is that I immediately (or in advance) buy back at least as much crypto with fiat as I just spentl.  So in effect, with my purchases I am converting nasty fiat into widely distributed crypto.  yay again.

That, in a nutshell, is how to hodl and spendl effectively and with enlightened self-interest.

Additional arguments for hodling and spendling?

I'm down with the plan in the OP. And I think that the days where we will never have to cash out to fiat are much closer than most people realize.

Regarding the chart:

That's what I do. Merchants need to know I am buying from them in bitcoins. The net value effect is null, except for the marketing effect and the increase in bitcoin liquidity.

By doing this all the time, we have made ourselves ready for the day when we are also paid in bitcoins, and then the circle would be complete.

Good post. What we need is more merchants accepting bitcoins.

not only, we should spend as many as we can to encourage other merchants to adopt bitcoin as a payment method

I prefer encouraging others to spend ;)

I think one of the largest arguments is that most tax codes encourage hodling and spendling. For example, under US tax law if you trade BTC for USD and have a profit then you are subject to tax at either short or long term capital gains rates or ordinary income rates depending on the tax treatment. This means a guaranteed loss of X%. See A Lawyer's Take on Bitcoin and Taxes (https://www.coindl.com/page/item/104) for more detail on the tax landscape.

Interestingly, the 'crashes' have never really been enough to compensate for the time value of money on this guaranteed loss, conversion rates, fees and risk on not being able to reestablish one's BTC position.

But that is premised on whether you think BTC's market cap should increase relative to other assets and asset classes. Being that crypto-currency is a currently empty storage vessel that has no counter-party risk and cannot be seized it is realistic that trillions of USD of value could flow into it. So the upside is tremendous.

From RunToBitcoin.com (http://www.runtobitcoin.com):

http://www.runtogold.com/images/potential-bitcoin-prices.jpg

I want to spendl on a hooker

Its' a free country, well that's what they tell you anyway ;)