HODL mentality destroys the currency aspect of Bitcoin

[rsrb]

I disagree as holding Bitcoin or other crypto currency is the most effective technique to earn from investment. One should not take bitcoin investment as a short period plan; rather a long period plan with it will bring fruitful result.

[1714751915]

1714751915

[Hui8]

Well, your submission is not far from the truth and that is the only factor that will help grow the market value of bitcoin not doubt.

Holding is one of the main purposes of bitcoin. I'm also attracted to the opportunity to keep my savings in bitcoins. I don't care about the price. I'm more interested in protecting my savings from inflation and from banks. We never know when a Bank could go broke and disappear with our money.

Ahm! First of all what you talking about is the process of storing your assets in terms of store value. Bitcoin being the store value here and its price is regardless of that because over the time your bitocin stays as it is. However, I don't agree upon using bitcoin in that way because it's not the real prupsoe of it and it will surely kill the bitcoin over time. Just imagine what happens when people are storing the fiat hidden from the government called as black money form. This disturbs the whole ecsosyemt of the country and thus development halts and we get pressurised about not having proper development, amaenties and much more.

Same can happen with the bitcoin over the time if it is held as it is. If it did not move from one place to other then it will not grow.

[Canis Majoris]

I don't completely agree with you. Ok, you made a point here, but, to me, the point is btc is still "too young" in the market, for you can't buy or sell stuff by using it (yet). If we see something just like an investment or saving, we are not moving it, of course, so the price will not rise soon. In that, I agree. but I don't think the heart of the problem resides just on the "hodling situation", but on the alternative uses of bitcoin. As long as we become able to buy and sell, to access to common products of need by using crypto, it will be finally into the economy. But, for the moment, we need to wait 'till enterprises take the risk and btc actually becomes a payment system.
For now, this is just being used for trading or investing, and the hold problem is just a temporary result of the December's bubble, where many people bought bitcoin as an investment, and they just don't want to lose their money.
Now, the moment btc will be seen as a tool instead of an investment, well, it will change forever the game.

It looks like you don't see the forest for the trees or how that saying actually goes. It is not a problem of enterprises taking the risk and making Bitcoin into a payment system. In fact, there is no real problem in that because the heart of the problem, as you put it, lies with the buyer, not the seller (enterprises). As an economic truism states, if there is demand, there will be supply. But there is no demand for Bitcoin payments and thus no supply of goods for bitcoins. People use crypto for speculation and prefer to use fiat as a means of payment.

[doomloop]

You are right on your point. Actually this happens because different people own crypto for different purpose. Some may think is as asset, some as currency that can be spent. Despite all these, holding ain’t all bad. I think, it increases demand of coins.

I would slightly differ in the point here because right now the bitcoin is not acceptable worldwide and just some countries with some partial parts are accepting it, secondly there are still approx. three and a half million bitcoins which have to enter in the market and lastly that the ratio of familiarization in the people is less than regular currency, so if people give up on HODL then bitcoin wont be able to give a lot of profit as it giving now.

[MainIbem]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

The most investors in cryptocurrency are the speculators. They obviously are investing for gain due to price increase. The economic way to get prices to increase is HODL. So it is not surprising.

[Canis Majoris]

I think he means that the speculative mentality is destroying the currency aspect of Bitcoin: The fact that most of the people are buying Bitcoins only to sell them later.
Sadly, that does destroy the main purpose of Bitcoin and other CryptoCURRENCIES.

You say Bitcoin is being used very well as a currency, but that is just plain old nonsense.
Let me ask you this:
What do most people use currencies, like USD, EUR, etc... for? They buy things with it.
What do most people use Cryptocurrencies, like BTC, XRP, etc.. for? They buy it to make more money through selling it later.

See the difference?
Bitcoin isn't used very well as a currency. Not even close.

What can you do. People think of bitcoin as an investment. You can't change their minds and nor can I. People hate crypto currency, they think of it as a stock. Though not all people don't spend bitcoin or any other cryptocurrency for regular purchases, some make do.
Having said that, hodling is not going to help, and I say that instead of supposedly hodling, mobilize your crypto across the markets, the more liquid the markets get, better becomes our experience and people's stupid conspiracies and shit goes down for real.

I'm curious what you mean by mobilizing "your crypto across the markets". Yeah, I really am. The majority of people are here for the quick buck, they are not particularly interested in the currency aspect of a cryptocurrency. As I said somewhere in the tread, maybe even in the OP itself lol, there is no economic reason to spend crypto when it works as a financial capital for the investor. And I don't think that people will be more inclined to spend their coins if they see massive losses on their investments, though the latter point is actually in question.

[blue_nexus15]

I disagree as holding Bitcoin or other crypto currency is the most effective technique to earn from investment. One should not take bitcoin investment as a short period plan; rather a long period plan with it will bring fruitful result.

Because bitcoin in general and other altcoins in the cryptocurrency market are volatile, it is recommended to keep bitcoin for long-term investment. If you want to invest in short-term you must be a good trader otherwise you are very easy to lose your property due to the rapid change of this market. Bitcoin is not only considered a currency but also a valuable asset.

[LodisMcguire]

For the small holder like many of us,hodling is the best way to expect profit and it has been proven.It's still a long way to expect bitcoin to act as currency with stable rate.Before the bitcoin is distributed enough through out the world,it will keep treated as investment.

[weblouartisan]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.

[Canis Majoris]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.

From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.

[doycku]

For the small holder like many of us,hodling is the best way to expect profit and it has been proven.It's still a long way to expect bitcoin to act as currency with stable rate.Before the bitcoin is distributed enough through out the world,it will keep treated as investment.

But judging by the circumstances that are on the market today, I'm inclined to assume that the long-term prospects of Bitcoin storage profit increase every day. And the impression is that you'll have to wait long enough, when you get at least some profit from storing Bitcoin.

[eminemcookie]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.

From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.

It really comes down to utility vs price, holding is good for the price but it harms the potential for bitcoin to have a high utility. The holding contributes to speculation which leads to wild price swings that make bitcoin near unusable as a currency and limit its utility. Without some utility holding will become a pointless and useless exercise because there will be no demand.

[jagdeepjd]

I partially agree with you that initially bitcoin was introduced as an payment option as against fiat or simultaneous with fiat. But over the time people are now starting to believe in bitcoin and it is being considered  as gold standard for crypto. And go serve as a payment processor there are many other cryptocurrencies to serve this object.
But the fact is we are very far away yet to see cryptoa are bei g used as a payment options as a daily driver.

[Canis Majoris]

Well, your submission is not far from the truth and that is the only factor that will help grow the market value of bitcoin not doubt.

Holding is one of the main purposes of bitcoin. I'm also attracted to the opportunity to keep my savings in bitcoins. I don't care about the price. I'm more interested in protecting my savings from inflation and from banks. We never know when a Bank could go broke and disappear with our money.

Ahm! First of all what you talking about is the process of storing your assets in terms of store value. Bitcoin being the store value here and its price is regardless of that because over the time your bitocin stays as it is. However, I don't agree upon using bitcoin in that way because it's not the real prupsoe of it and it will surely kill the bitcoin over time. Just imagine what happens when people are storing the fiat hidden from the government called as black money form. This disturbs the whole ecsosyemt of the country and thus development halts and we get pressurised about not having proper development, amaenties and much more.

Same can happen with the bitcoin over the time if it is held as it is. If it did not move from one place to other then it will not grow.

I don't think that exactly the same can happen. It just can't possibly happen because Bitcoin, as well as other cryptocurrencies, for that matter, doesn't facilitate the exchange of goods, so there is nothing to disturb or destroy economically-wise on the scale of the whole economy of a country. At max, Bitcoin will kill itself, and probably a few other cryptocurrencies, but that's pretty much all. There is basically nothing more to die for.

[Canis Majoris]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.

From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.

It really comes down to utility vs price, holding is good for the price but it harms the potential for bitcoin to have a high utility. The holding contributes to speculation which leads to wild price swings that make bitcoin near unusable as a currency and limit its utility. Without some utility holding will become a pointless and useless exercise because there will be no demand.

And we seem to have already reached the point of saturation from where we can only roll downhill with minor rebounds and reversals. However, we can't deny the fact that crypto is quite useful in payments across the globe. Everyone knows its advantages and benefits, so there's no need to repeat them. It is quite possible that the most of Bitcoin's current price is due to plain speculation but the transactional utility is real and it won't go away just because of price hitting the floor. That thing accommodates at least some room for hope.

[majeed]

Well, your submission is not far from the truth and that is the only factor that will help grow the market value of bitcoin not doubt.

Holding is one of the main purposes of bitcoin. I'm also attracted to the opportunity to keep my savings in bitcoins. I don't care about the price. I'm more interested in protecting my savings from inflation and from banks. We never know when a Bank could go broke and disappear with our money.

Nope dude. Holding is not one of the main purposes of bitcoin. Bitcoin was made in order to become a world currency. However, people only focus on how to make money with bitcoin and they forget everything in the Nakamoto Satoshi's whitepaper. And now, only holding is what they think of when we mention bitcoin

[entrepmind23]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

We are still looking at bitcoin in terms of its fiat value that's why it is stopping us to spend it whenever it goes down because that would mean, we would need higher amount of coin to pay for those goods or services. Usually, prices of those goods or those services are in fiat value so we still need to convert it. This would always remain as it is because we are still pricing the items in terms of fiat but if the items are price in bitcoin and we do not worry anymore of its equivalent value in fiat then that's the time it would become a currency. For now, it is more like an asset and for speculation purposes.

[0t3p0t]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Yeah you said it right hodling and keeping Bitcoins for investment is not a joke because it is opposite on what Satoshi the founder and Bitcoin he want it to be. Sad reality but we cannot control anyone they can do whatever they want with their Bitcoins. Though they really don't understand or maybe they just grab the opportunity where potential in investment industry is profitable nowadays compared to having it spent to goods or services.

[SiNeReiNZzz]

It seems like only a small fraction of bitcoins as well as other cryptocurrencies gets earned while the vast majority of the coins are bought. But when people buy coins, they obviously aim exclusively at selling them later at a higher price, which is what speculation basically consists in because it makes no economic sense to buy a cryptocurrency to spend it on goods when people can easily spend fiat instead. However, if the price goes down, people aren't going to spend their coins either. And whenever someone complains about prices going down, the only reply they receive is just to hold to their precious bitcoins, no matter what the price could or would be. I have yet to meet anyone telling these bag holders to spend their stashes on something useful.

Apparently, the HODL mentality kills the currency aspect of Bitcoin.

Actually its not destroying bitcoins but people who are holding their coins and not selling it in the market are really making the price of bitcoins increase even further because the demand is increasing but the supply is locked so expect a higher price when people is keep on holding.

From my perspective, it is an erroneous attitude. Real value comes from real usage, while speculation doesn't belong here. When people keep on holding, it limits the amount of bitcoins being traded - that's definitely true. And although it contributes to a higher price, this price rise doesn't add anything to real value. What it actually contributes to in the long run is extreme volatility because, as I said, supply diminishes and markets become more susceptible to liquidity storms.

It really comes down to utility vs price, holding is good for the price but it harms the potential for bitcoin to have a high utility. The holding contributes to speculation which leads to wild price swings that make bitcoin near unusable as a currency and limit its utility. Without some utility holding will become a pointless and useless exercise because there will be no demand.

In other words it only means that trading would be no longer helpful? i guess this is where it will be going then, but to some point i agree with you guys. Most of the times when people asked what to do in every crucial situation in the market, they will just say HODL for it. At some point yes it has good impact, while some people keep on holding and limited supply of bitcoin are circulating in the market, more and more the demand will rise, and as of now that there are new investors who only knew bitcoin recently, and it makes the market more competitive.

[OnceTwiceThird]

Bitcoin down right now and we have hold mentality and keep strong to face thsi situation, we know is hard for every one have joined the crypto currency and will be sad when we see the market of the bitcoin, altcoin and bitcoin have down price and now we have great mentality to face it. Just keep and have the other option for your income to keep your money still on your wallet for your needed in daily and stop hope at the crypto now.