Never sell your Bitcoin?

[Joshua01]

I just want to see what the general consensus is about selling Bitcoin. The well-known Bitcoin advocate, Mr. Michael Saylor, has said that you should never sell your Bitcoin, you should hold it for a lifetime. He believes that when you sell bitcoin, you will be taxed, but if you hold it, you can borrow bitcoin at a good interest rate (tax-free). Platforms such as Block Fi provide such services.

What do you think of this problem? If I double my investment during the next bull market, then for liquidity purposes, I will most likely not sell a bit. I really like Bitcoin and its direction of development, so regardless of short-term price fluctuations, I plan to invest in the long-term.

[ranochigo]

Depends on where you live, certain places do not have capital gains tax which wouldn't eat into your profits.

If you never sell your Bitcoins or otherwise actively use it, then there is little purpose for Bitcoin's existence. Not everyone should be trying to loan out their Bitcoins, oversaturating the market that way wouldn't be beneficial either and incurs opportunity costs for your Bitcoins as well.

I don't see the point of HODLing it. If everyone adopts that mindset, then Bitcoin simply wouldn't grow in the long term. How can you justify it as a currency if the value arises from its potential to supplement or otherwise replace the financial systems?

[Tristan Bieber]

If you can help it, you never want to sell an asset. Especially the apex asset of humanity.
Leverage it if you need fiat, but for pure monetary purposes it makes no sense to ever sell Bitcoin. You sell, you pay capital gains tax and lose all future upside. If you leverage it (take out a loan against it), you keep it, pay zero taxes on the loan, and can refinance that fucker over and over (like a house appreciating in value in a real estate run up), and live off the leverage.
Unless you have no other choice, don’t ever sell it.

[GreatArkansas]

There are a lot of different people who are entering or buying Bitcoin with different goals.
Some of them don't know what really the use of Bitcoin, some of them are buying because they thought it could generate them easy money, some of them are for investment like mid term/short term or long term.
And some of the people buying Bitcoin got a trader mindset, that 'HODL' term not true for them, they only for profits. Very difficult to force some people to never sell their Bitcoin.

[mk4]

Remember that methods of investing, or investing in general is mostly subjective. You really don't need to follow one man's opinion simply because everyone's situation is different. Just do whatever fits more towards your current and potential future financial situation.

[amihada]

many people spend their money to buy bitcoin with the aim of making a profit in the short term they don't think bitcoin is for the future, but only people who know the future profit is bigger they will hold bitcoin in the long term.

[nutildah]

I just want to see what the general consensus is about selling Bitcoin. The well-known Bitcoin advocate, Mr. Michael Saylor, has said that you should never sell your Bitcoin, you should hold it for a lifetime. He believes that when you sell bitcoin, you will be taxed, but if you hold it, you can borrow bitcoin at a good interest rate (tax-free).

First remember that Saylor doesn't care about you or anybody here whatsoever. He only cares about the fact that he can use Bitcoin to make other uber rich people money. So of course he would tell everyone to never sell because he is trying to inflate his investment.

I don't see the point of HODLing it. If everyone adopts that mindset, then Bitcoin simply wouldn't grow in the long term. How can you justify it as a currency if the value arises from its potential to supplement or otherwise replace the financial systems?

Exactly. The purpose of bitcoin is to be spent.

[Rikafip]

I don't see the point of HODLing it. If everyone adopts that mindset, then Bitcoin simply wouldn't grow in the long term. How can you justify it as a currency if the value arises from its potential to supplement or otherwise replace the financial systems?

+1

This reminds me of a thing I often hear (especially from non-bitcoiners) in regard to those early adopters who spent  crazy amounts of BTC, like "look at that idiot pizza guy, if he saved those 10,000 BTC he would be millionaire now" not realizing that if those early adopters decided to just passively hold instead buying something and showing that bitcoin is money, we wouldn't be where we are now.



Regarding OP question, I spend BTC on the regular basis. Sometimes directly, sometimes via crypto debit card, but I do use it.

[hd49728]

I just want to see what the general consensus is about selling Bitcoin. The well-known Bitcoin advocate, Mr. Michael Saylor, has said that you should never sell your Bitcoin, you should hold it for a lifetime.

Never sell is not right. What are the points of hodling your bitcoin forever? You invest to get money, profit. To get profit, you have to sell it obviously. You might not sell all your bitcoin you have but you have to sell a part of it.

He believes that when you sell bitcoin, you will be taxed

It depends on the tax policy in your nation. In some nations, tax policy on cryptocurrency is not clear and government only taxes you if you cash your cryptocurrency into fiat currency. It means you will not be taxed if you sell your bitcoin to get stable coin.

Cash some of your stable coin to fiat currency when you need money.

[Kong Hey Pakboy]

With your title, you are subconsciously priming people to say that they shouldn't sell so that means that the general consensus will eventually favor not selling their bitcoin If you can gain a really big profit margin, you might as well sell it all because you can just sell it back when the prices go down again, nothin wrong with getting profits out of hodling.

[pooya87]

has said that you should never sell your Bitcoin, you should hold it for a lifetime.

That's nonsense. The trick is to figure out how much to sell, when to sell and how to sell. For example you are not supposed to sell in a dip specially when bitcoin is undervalued, and definitely not sell all you have. But you can always sell a small amount when we are in bubbles before they burst like $20k in 2017, and enjoy the profit.
Additionally you don't need to "sell" bitcoin to make a profit, remember bitcoin is a currency so you can "spend" it to enjoy that profit when you are benefiting from your increased purchasing power.

you can borrow bitcoin at a good interest rate (tax-free). Platforms such as Block Fi provide such services.

That sounds like an advertisement for a centralized service. And the idea of borrowing bitcoin is a terrible one in my opinion.

[Tessnik]

This statement depends on the financial condition of the holder, you can’t say one should not sell bitcoin when in dear need of money to settle urgent financial needs. It’s advisable to hold your bitcoin when you have other alternative means of settling your financial need.

[Kiley33]

In short, I never sell fiat currency
Only applies to the assets I want. Real estate is time spent with family. and many more.
Not when Bitcoin is severely undervalued like it is now

[Wexnident]

We hold Bitcoin for a variety of reasons but there would always come a time where you would inevitably sell it tbh, since it's pretty much the use of it. It's a currency, not some type of rare item or whatnot that can act as an heirloom for your family. Sure, hold it long enough maybe so that you can get your investment and probably more back, but holding it forever? Nah. HODLers are in the end, still a type of investor and would still pretty much sell it back to gain profit. Even if it wasn't for investment, again, it is a currency, it's meant to be spent.

[Poker Player]

I have commented in other threads, although Saylor's idea doesn't seem like a bad idea in principle, I think that popularizing it can lead to disastrous results.

I don't think the masses are going to borrow as Saylor says. What he says is what a lot billionaires do: they create or acquire first-class pristine assets, never or almost never sell them and borrow against them. What he also says, and I don't see as much emphasis on it, is that they do it with a low debt to equity ratio, which allows them to ride out downturns and bear markets.

I believe that if this becomes popular, the masses will borrow at a dangerous debt to equity ratio, which could lead us to fall into the very problems that Bitcoin was created to solve.

[lovesmayfamilis]

The word "never" confuses me. If there is a reason to spend, then I will spend. For what purpose are you starting to invest? To make a profit. Do you have an idea where you will spend your profits? If there is no idea and purpose, there will be no point in holding the cryptocurrency. Moreover, all these calls to keep bitcoins like the apple of your eye, and never spend them, are inappropriate for some segments of the population.
Those who need finances should not deprive themselves of anything. A person has one life. And many people are waiting for profit and wealth later. And sometimes this "later" may not happen.

[xSkylarx]

What's the purpose of investing or buying bitcoin if we are not planning to sell it forever? I think all of us invested in bitcoin mainly because of its profit potential in the future, paying taxes is not that important for small investors. If everyone will just hold bitcoin for the purpose of putting it on platforms like Block Fi then the market will not be balanced. No one will just hold their bitcoin, there is always someone that will sell to take profit or when there are fuds spreading about it.

[BlackHatCoiner]

I just want to see what the general consensus is about selling Bitcoin. The well-known Bitcoin advocate, Mr. Michael Saylor, has said that you should never sell your Bitcoin, you should hold it for a lifetime.

Not just Saylor; almost anyone you ask, you'll get a similar response. And that is completely justified. We're living an epoch where Bitcoin isn't globally adopted yet and therefore, if you hold your coins, you'll most likely be richer in the future. The demanding will rise and so will the exchange rate of BTC/USD. Not to mention that comparing a long-term deflationary currency with an (soon hyper)inflated one will result in increase of its exchange rate.

I see Bitcoin as a safe haven in the long term, just as gold. It'd have the lowest risk to hold it in contrast with other cryptocurrencies. Just to mention that Bitcoin has a $650B market cap and gold $10T. Judge this and act however you believe it'll end up in the late 20s.

I don't see the point of HODLing it. If everyone adopts that mindset, then Bitcoin simply wouldn't grow in the long term. How can you justify it as a currency if the value arises from its potential to supplement or otherwise replace the financial systems?

There will always be people willing to spend their BTC. Holding relies on that fact, including that it'll be globally adopted in the future.

[swiftbits]

It is still our choice of preference; you could use it for accumulating your goals savings then sell it.
You could also invest it for long-term gain. Bitcoin is still young; more platforms will adopt this technology as an alternative payment method.
If the time comes, it could be a convenient asset for doing transactions. KEEPING IT is still a win; the value will still increase in time.

[Kittygalore]

Why sell bitcoin during its dip? Hodl bitcoin until you can, hold bitcoin until you reach your desired profit, always remember that you are investing to earn money so dont invest for a lifetime invest until you earn too much money, Every dip is an opportunity, so if you still have the money then you should take that opportunity to buy more because it will benefit you a lot once it reaches another ATH.

Exactly, but there's an exception to this rule and that's the short-term people and the traders, might as well do a stop loss when the prices are going down and just go back to it when the prices are much lower and wait for it to go back up again.