[2018-04-15]HODL On: In Defense of Bitcoin's Best Strategy

[Reatim]

HODL On: In Defense of Bitcoin's Best Strategy

In 1987's Black Monday stock market crash, Sam Walton, the world's richest man, lost more than half a billion dollars in a few hours.

When reached for comment, Walton said, "It's paper anyway. As far as I'm concerned we're focusing totally on the company doing well and taking care of our customers."

He didn't care about dollars; he cared about his asset Wal-Mart, and he still owned that.

History of the #HODL


Here is the original post by GameKyuubi on a Bitcoin Talk forum (spelling errors and profanity included):

I AM HODLING

I type d that tyitle twice because I knew it was wrong the first time.  Still wrong.  w/e.  GF's out at a lesbian bar, BTC crashing WHY AM I HOLDING? I'LL TELL YOU WHY.  It's because I'm a bad trader and I KNOW I'M A BAD TRADER.  Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro.  Likewise the weak hands are like OH NO IT'S GOING DOWN I'M GONNA SELL he he he and then they're like OH GOD MY ASSHOLE when the SMART traders who KNOW WHAT THE FUCK THEY'RE DOING buy back in but you know what?  I'm not part of that group.  When the traders buy back in I'm already part of the market capital so GUESS WHO YOU'RE CHEATING day traders NOT ME~!  Those taunt threads saying "OHH YOU SHOULD HAVE SOLD" YEAH NO SHIT.  NO SHIT I SHOULD HAVE SOLD.  I SHOULD HAVE SOLD MOMENTS BEFORE EVERY SELL AND BOUGHT MOMENTS BEFORE EVERY BUY BUT YOU KNOW WHAT NOT EVERYBODY IS AS COOL AS YOU.  You only sell in a bear market if you are a good day trader or an illusioned noob.  The people inbetween hold.  In a zero-sum game such as this, traders can only take your money if you sell.

so i've had some whiskey

actually on the bottle it's spelled whisky

w/e

sue me

(But only if it's payable in BTC)

https://www.coindesk.com/bitcoin-in-defense-of-hodlers/

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[Xavofat]

In the article they mention Warren Buffett's trading strategy:

Warren Buffett, the most successful investor of modern times, has often said that he only invests in what he knows. His preferred holding period: forever. With that model, his company, Berkshire Hathaway, has averaged a 19 percent annual return since 1965 which means it has risen more than 1 million percent.

While this is true, Berkshire Hathaway is something that he has control over.  His long-term investments are generally in established fields which are stable.  He does invest long-term, but he certainly wouldn't invest in Bitcoin over the long-term.

I would say that the smartest way to deal with Bitcoin would be cost averaging - just buy a set amount on a regular basis and then sell or spend whenever you need money.  That way you're separate from both the panic buyers/sellers and the HODLers.

[TravelMug]

In the article they mention Warren Buffett's trading strategy:

Warren Buffett, the most successful investor of modern times, has often said that he only invests in what he knows. His preferred holding period: forever. With that model, his company, Berkshire Hathaway, has averaged a 19 percent annual return since 1965 which means it has risen more than 1 million percent.

While this is true, Berkshire Hathaway is something that he has control over.  His long-term investments are generally in established fields which are stable.  He does invest long-term, but he certainly wouldn't invest in Bitcoin over the long-term.

I would say that the smartest way to deal with Bitcoin would be cost averaging - just buy a set amount on a regular basis and then sell or spend whenever you need money.  That way you're separate from both the panic buyers/sellers and the HODLers.

Yes, I agree, its been one of the proven strategies that I have personally used. I just react what the market presents at the moment, when it is in dip then go and accumulate more if you have funds. But if bitcoin is moving forward and you speculate that it has hit the top price then sell and take the profits and then re-invest in the situation permits itself.

[Infern0]

Thank you for interesting thought! It seems to me that this is the most working strategy. And most importantly, without unnecessary effort and waste of time , you get a much greater result than with trading, mining and other methods of earning on crypto currencies.

[kevoh]

We will not be discussing the difficulty of HODLing if people bought into Bitcoin with the mindset that all investment have risks attached to it. What we have are those who were attracted by the allure of making x100 of their investment in bitcoin within a short period. Some even took ill-advised decisions by investing their entire life savings to quickly make some profit.

These are the ones that have been categorized as weak hands as they can not bear to see the value of their investments/savings halved and they quickly sell off.

[Reatim]

Thank you for interesting thought! It seems to me that this is the most working strategy. And most importantly, without unnecessary effort and waste of time , you get a much greater result than with trading, mining and other methods of earning on crypto currencies.

Right HODL'ing is one of the best strategy that someone with no prior knowledge of trading. Less hassle and no headache everyday specially seeing the price plunging.

And just by hodling for longer term, one might get and realized his potential profits. Just read 50 cent, way back he decided to accepts bitcoin as payment with his downloaded songs and moving forward 2017 he gains a lot by just keeping it in his wallet.

[jjacob]

The logic goes right back to GameKyubi's post - are you a good trader or bad trader. If you are a good trader, there is money to be made from the rise and dips of Bitcoin's price - good money. If you cannot trade to save your life, you are better off holding for the long term. The price is most probably going to rise, as Bitcoin's potential is realized.

[RamonBTC]

The logic goes right back to GameKyubi's post - are you a good trader or bad trader. If you are a good trader, there is money to be made from the rise and dips of Bitcoin's price - good money. If you cannot trade to save your life, you are better off holding for the long term.

I can’t agree more, you’re thoughts is similar as mine. Daily trading is for this who are knowledgeable in technical analysis and if you have none it’s better to be holding long term as you soon be profiting either way.

The price is most probably going to rise, as Bitcoin's potential is realized.

Bitcoin critics can’t do anything, but to understand that its price can’t go anywhere but up. This is I’m sure with as there is no alternative coin that has the potential of taking bitcoin popularity, reflected to that altcoin and most probably not on forkcoin.

[gabbie2010]

This article has reaffirmed the benefit of hodling
The word "HODL" might look strange to a first timer " newbies" in the world of  cryptocurrencies particularly bitcoin of course in  a season of FUD panics is the order of the day for them i.e massive dumping invariably causing more havoc to the crash in price however oldies, seasoned traders follows or obeys the slogan "hodl" in whatever the situation.