Is Bitcoin a Good Investment? Does Hodl Work?

[FairUser]

If you decide you want to hold bitcoins, then you don't need to analyze the price every month. Buy it and keep it for at least a year or more to get more profit. Analysis like this is only suitable for short-term traders and traders, but for the current market trading is bound to lead to losses.

[longyenthanh]

If you’re looking for short term profits then bitcoin might not be a great investment. It’s a very volatile asset & you could lose a lot of money.

Nobody ever HODLED long term & lost money though. I’ve made (unrealised/unsold) profits that I never even thought would be close to reality by HODLING. Bitcoin has & will make my life by HODLING so yes HODLING is a fantastic thing to do.

If you can afford to buy bitcoin & do nothing with it, simply sit on it for anything over 5 years then you will make ridiculously good profit that’s incomparable with any traditional fiat based stock/asset.

Just look at a chart detailing bitcoin’s price movements from the first block mined to the current day. The overall price trend is upwards & will continue to be.

HODL works if you have bought bitcoin at right price. There is no point in HODL if you have bought bitcoin at 19000$ or 12000$. Last year in December price of bitcoin was around 3500$, those who bought at that price and HODL were blessed with a chance to sell at 11000$.

[YuginKadoya]

Well as I said to a newbie holder they can enter anytime they want and now that the price is at $7200 USD I think it is still best to just buy when you had your extra cash or free time to spare with Bitcoin and other coins,

Well, the recent price was something at $6000 USD above well I think that is a great price to start and the price will not be going any lower than that as this year-end but it is still good to proceed with investment and holding and in my opinion, because the price will surely make its way to another all-time high, well we can never know for sure that is why long term investment is always good for me.

[Hamphser]

If you’re looking for short term profits then bitcoin might not be a great investment. It’s a very volatile asset & you could lose a lot of money.

Nobody ever HODLED long term & lost money though. I’ve made (unrealised/unsold) profits that I never even thought would be close to reality by HODLING. Bitcoin has & will make my life by HODLING so yes HODLING is a fantastic thing to do.

If you can afford to buy bitcoin & do nothing with it, simply sit on it for anything over 5 years then you will make ridiculously good profit that’s incomparable with any traditional fiat based stock/asset.

Just look at a chart detailing bitcoin’s price movements from the first block mined to the current day. The overall price trend is upwards & will continue to be.

HODL works if you have bought bitcoin at right price. There is no point in HODL if you have bought bitcoin at 19000$ or 12000$. Last year in December price of bitcoin was around 3500$, those who bought at that price and HODL were blessed with a chance to sell at 11000$.

Yes and you have a point. Why would someone has to buy at the peak though? It's because they don't follow the market and just getting in because they think it's a trend where in fact it's a bull trap soon. Sad to say they were the victim of buy high sell low because they don't understand what they are investing.

[bitzizzix]

I prefer to hold bitcoin for a long time because it always gives a good and profitable return, but that does not mean I hold it for a very long time, and only buy when the price is cheap and wait for profit then sell it.
and I don't want to hold it for too long because if I hold it for too long because of dissatisfaction when the price of bitcoin continues to rise and hope it will continue to rise and eventually the price has dropped dramatically and finally regret it, and I've experienced it like that.

[Febo]

Is Bitcoin a Good Investment? Does Hodl Work?

To really well see if hold works we should look at long term hold. I hope we all agree that minimum time span fro long term hold is 4 years. Using that numbers will give magical results.

[mikeywith]

as for buying, things have been bad ONLY for those who bought bitcoin in the last week of the last month of 2017! otherwise for anybody who bought bitcoin before that, ~80% of last 2 years the price has been above their entry point...

This is not true, it may seem like it but the numbers have something different to tell us, there is no other way of defining "bad" , bad is bad and that's about it.

in the past 2 years, you only had 6 out of 24 months to go lump sum and still be in the green now which are November 2018 to April 2019, any other period and you would have been either in a loss or close to break-even (which can also be considered bad to many people)

So most people who bough bitcoin going all-in or lump sum are now in a negative territory, which is why cost averaging is a much better in terms of reducing risks, and that has been explained in the OP.

another point I want to add, that despite 2 years being long enough, it's not long enough to avoid the risk of bear markets, this is what history has proven, it could get worse depending on when will BTC see a new ATH to make those who bough the last ATH in profit again, my guess is 3 years minimum, in case someone accidentally buys the top of the market.

edit:

or maybe this can be a little more accurate.

I hope we all agree that minimum time span fro long term hold is 4 years. Using that numbers will give magical results.

[custard_pudding]

Yes, HODL does work.


For example, I bought at peak in 2017, that means I am still holding until now, and I will never get panic despite of what would happen to the market.

so you say HODL works, but it has not worked for you, are you Jeremy Corbyn?

[Hypnosis00]

Though holding is a good option to take especially during the bear season but couldn't have an assurance that we can be of big profits for holding it for many years. Remember how much it drops after 2017 Bullrun and those who invested that time, I don't think that they could still manage to hold their bitcoin until today. Thus, it simply means that holding doesn't warrant anything, we still need to listen to the market flows or otherwise, we are just holding for nothing.

[davinchi]

Let's take a look at exactly one year levels and how holding would be helpful for you or not. If you bought bitcoin at 23rd December 2014 you would get it for 335 dollars per bitcoin, which is obviously an insanely profitable purchase, you would have made over 20x of your investment if you purchased bitcoin at around those prices, not just 2x but 20x which is insane to think about in financial worlds.

If you bought it at 23rd December of 2015 you would have bought it for 438 dollars, which is a bit higher than 2014 which shows you could have made a profit from 2014 to 2015 but if you bought at 2015 you would have still profited. If you bought on 23rd December of 2016 you would have bought it for 900 dollars, surely a double increase in profits after one year would be a great deal but for today that would have been over 7x profits.

If you bought on 23rd December which looks to be the only time it is bad to buy around 13 thousand dollars which is a bad time to buy but after that in 2018 it would be 3200 and in this year it is over 7 thousand. So, as you can see from 6 years of looking at where to buy bitcoin, you have just one bad year for holding.

[mikeywith]

but if you bought at 2015 you would have still profited.

Wrong, if you bought Dec 2015 and sat on it for a year, you would have lost over 50 % which means, this line of yours is wrong too

as you can see from 6 years of looking at where to buy bitcoin, you have just one bad year for holding.

Also you can't selectivity chose the years and timing and conclude that hodling works just like that, if you show me 5 examples of how hodling worked i can show you 10 of how it didn't.

The point of this topic which I may have failed to deliver is that Hodling should be done in steps aka cost averaging, buying all at once is very stupid and in many cases you would have lost money even if you held for as long as 2 years, while cost averaging reduces the risk, I have shown you how starting to buy on the peak of 2017 and selling now would have been not as bad, however for someone who bought all in aka lump sum - they are now at over -60% after Hodling for 2 years, which is terrible !.

[Republikcoin.com]

Though holding is a good option to take especially during the bear season but couldn't have an assurance that we can be of big profits for holding it for many years. Remember how much it drops after 2017 Bullrun and those who invested that time, I don't think that they could still manage to hold their bitcoin until today. Thus, it simply means that holding doesn't warrant anything, we still need to listen to the market flows or otherwise, we are just holding for nothing.

yes, holding, in the long run, does not guarantee anything, it's just that it provides an opportunity, even in the future, holding large amounts of bitcoin also has great potential. however, if we measure it from 2017, the price of bitcoin has really fallen. but, forget about 2017, and look at the beginning of 2019, if measured up to now, then the increase provided is quite beneficial. although it doesn't guarantee, I still consider holding back still working. Well, I am holding bitcoin from the beginning of 2019, and that is very good, even more so in 2020 provides a great opportunity. I will keep it on.

[MuffinMaster]

just buying at any random time and then hodl will give you nothing. Imagine those who bought bitcoin in 2017 are still hodling and will continue to hodl unless we saw btc ath again. HODL works but you have to study the market first. See whats the best price to buy bitcoin prior to HODLING otherwise you will continue to hodl

[Ferris419]

Right now in crypto, I don't see any other currency profitable than bitcoin. Bitcoin investment is good in short and hodl both ways. Because only Bitcoin price goes to up and downs quickly, so, if the price goes down, it will be back at least 2-300 USD up within a week. Therefore if you buy at the current price and start holding it, it will be worthy in the coming year, as there will have many good updates on Bitcoin. So, yes, Bitcoin is a good investment indeed.

[ultrloa]

Hodl will work if there's something good that we are waiting since we provably get a benefits of it in future but in bearish market? it's suicide since we are slowly killing ourself for seeing those dump happening in the market and might we will end up selling our hodl coin in cheap price. That's why we always see the condition before we goes thru since there's no coming back if we lose our money in that day.

So be wise and be vigilant.

[DevilSlayer]

If you’re looking for short term profits then bitcoin might not be a great investment. It’s a very volatile asset & you could lose a lot of money.

Nobody ever HODLED long term & lost money though. I’ve made (unrealised/unsold) profits that I never even thought would be close to reality by HODLING. Bitcoin has & will make my life by HODLING so yes HODLING is a fantastic thing to do.

If you can afford to buy bitcoin & do nothing with it, simply sit on it for anything over 5 years then you will make ridiculously good profit that’s incomparable with any traditional fiat based stock/asset.

Just look at a chart detailing bitcoin’s price movements from the first block mined to the current day. The overall price trend is upwards & will continue to be.

HODL works if you have bought bitcoin at right price. There is no point in HODL if you have bought bitcoin at 19000$ or 12000$. Last year in December price of bitcoin was around 3500$, those who bought at that price and HODL were blessed with a chance to sell at 11000$.

Yes and you have a point. Why would someone has to buy at the peak though? It's because they don't follow the market and just getting in because they think it's a trend where in fact it's a bull trap soon. Sad to say they were the victim of buy high sell low because they don't understand what they are investing.

Bitcoin is a good investment but the HODL that you are talking about is not always working. There are many people who became rich because of HODL but there are also many people who lose because of HODL. The answer to have an effective HODL strategy is timing. You cannot HODL if you bought at the peak of the price. The best time to do HODL is to buy at the bottom of the price.

[johnwest]

I have been holding bitcoin since I bought them at approx 1500$ and later buying little at every dump. I think Holding worked for me quiet well even if the price is not half way down of all time high. If you are holding for years then you will always be in profit, unless you are trying to sell for just 1-2 years.. 

[Wexlike]

I have been holding bitcoin since I bought them at approx 1500$ and later buying little at every dump. I think Holding worked for me quiet well even if the price is not half way down of all time high. If you are holding for years then you will always be in profit, unless you are trying to sell for just 1-2 years.. 

Hodling and DCA (Dollar cost average) seems to work quite nice as well for me. I highly recommend it to my friends and family and try to push them away as much as possible from trading. I do some profits while trading, but tbh it's definitely not worth the hassle, I just do it out of boredom lol.

[kapalmabur]

just calm down Bitcoin is still very feasible for us to buy and hold !, because Bitcoin is still experiencing growth from year to year,
large institutions and companies have also looked at it, even the country  

[Lucius]

Holding is working very nicely for me, but I start with that back in 2014 and 2015 which was a great year in terms of very low prices of BTC (even bellow $200) and long-time in the range from $200 - $250. Considering that I was already thinking in the direction of long-term investment, the strategy, of course, paid off and did not bring any losses.

But as shown in the OP, profit can be made even BTC is bought at ATH and by buying constantly thereafter. However, few people apply this strategy because they do not see the logic in it, even though it is pure math. Bitcoin will never be a good investment for those who don't implement good strategies and rely solely on luck.