If you don't know what hodling is, you need to read
this thread 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 )
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.
