If everyone is holding their bitcoin, will there be a balance?

[EarnOnVictor]

-snip-
This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

I understand you and I also hear enough about Bitcoin, majorly how people encouraged others to buy and hold forever, if possible. Well, let me start by saying that no question is dumb as far as I am concerned and the person that asks is wiser than the person that does not seek knowledge at all. And it seems your lack of knowledge about trading and investment is causing this, so I implore you to seek more knowledge in that regard. You can learn it towards the economics of it, and down to the speculation aspect, so that you get to handle simple things like this yourself.

Now, I want you to view Bitcoin as water inside a bowl. If a cup of water is drawn from it, the water volume will reduce, but if a cup of water is rather added instead of the initial removal, the volume of water will increase. Also, if the water in the bowl is left untouched, it will remain as it is without any addition or subtraction. That's how the Bitcoin market works. You should assume that the bowl is Bitcoin and the water in it is the liquidity/capitalization (money). If more money is being injected into the Bitcoin market, the price will continue to rise, and this is what economists call Demand. But if more money is being withdrawn from the Bitcoin market, the price will reduce, and this is what economists call Supply. Now, this demand and supply will always play their role in any market/asset as rivals, they always fight (Bulls and Bears). Due to this, there will be times when more demand will prevail in the market, and there will be times when more supply will prevail in the market. No market has ever been on a smooth slope without some retracements/corrections, range, channelling, and even reversal. So Bitcoin can't be and those people expect and you do not beg people for the demand to prevail during its time (bullish season). So, the advice you received is for Bitcoin stability where no supply would happen. However, this will help Bitcoin but I have never seen a market like that. The market is dynamic.

As for the miners, their activities can no longer control the market because the majority of Bitcoin has already been mined.

[1714898458]

1714898458

[1714898458]

1714898458

[1714898458]

1714898458

[Apocollapse]

Your questions is pretty much similar to if everyone were entrepreneurs, who would be employees?

You need to know if no one else can control every people in the world, even a president or Joe Biden can't even control every citizen, the proof is there are still many criminals, robbery, beggars etc.

So your question doesn't make sense at all.

[Silberman]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

This is not correct, we suggest people to hold their coins because for most of them this is the best move, it has nothing to do with the greater good for bitcoin or anything like that, what happens is that most people in their attempt to outsmart the markets end up outsmarting themselves, and about holding being dangerous to the bitcoin ecosystem, this is not correct either, each person individually will decide when it is the time for them to sell their coins, adding to the fees paid to the miners on each block, which will keep them on business for decades to come.

[arwin100]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

Maybe it came out on our mind that what will happen if everyone is holding? For sure we can see something unexpected things. But actually that's not going to happen since for sure there's a lot of people can't able to hodl their bitcoins and only those stable individuals also the institution are doing this. But for normal people expect that they are the one who use and circulate bitcoins well so no need to worry about anything if you think negative about it. For sure bitcoin will be fine even if the block reward will became more smaller. And also I maybe guess that there would be changes that miners can adopt so we should not worry anything about it and bitcoin will continue its cycle.

[2Pizza410000BTC]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

I understand your question actually not everyone is a bitcoin holder there are many people here they are traders. They are not here to hold bitcoins they are here to trade. If someone bought his bitcoins with his own money then he would certainly make himself available to sell after the growth. But in this case, if the sales decrease, the profits of the miners will definitely decrease.

[TheUltraElite]

At this point people are using both fiat and crypto - so someone holding onto their crypto, buying more and not ever selling is a common thing. However this is a rare breed of people and only a niche group among the entire population of bitcoin users. Many are actively selling and using the money to fund their daily living costs.

Things might become more clear if in future bitcoin use takes over fiat use. But feel free to use crypto too, we need to encourage sites that help us do so, like gift cards sellers, even though fees might be a deterring factor.

[Wapfika]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

This is impossible to happened now that institutional trader already enter the market. They will surely sell their holdings once the price reach their target profit. This idea is only possible to centralized community and not with decentralized community like Bitcoin which holders and traders are free to trade their coin whenever they want.

There’s no reason also for everyone to hold without selling since we are all here to gain profit. There’s always a time that selling is imminent if the price is already way beyond the  target profit of traders.

[Synchronice]

Isn't it obvious?  People hold Bitcoin to get more profit.  Holding Bitcoin will temporarily make the Bitcoin market rare due to the controlled market supply but I am sure that they will sell to realized profit.

I don't like the idea of many people holding Bitcoins. Logically, it will increase the price, i.e. will result in high profit for Bitcoin holders but on another hand, you have to keep in mind that it can also have absolutely different and negative effect, people might abandon Bitcoin if it becomes hard to acquire it. I am talking about the extreme moment that OP described, i.e. the moment when almost everyone holds and people rarely sell it.

[Blitzboy]

If everyone holds bitcoin, dynamics change, but balance? Nuanced. Everyone holding eternally is theoretically extreme. Realistically, holding, selling, and utilising will always occur. Why? Life happens. People's circumstances vary, causing market fluctuations.

Mining being unprofitable if everyone holds and no one sells is a serious risk. Bitcoin's mining difficulty adjustment method keeps mining viable even with shifting rewards. As the block reward decreases, transaction fees increase. Aligning incentives is key.

Despite excellent reasons to hold, the ecosystem is intended to adapt. Bitcoin relies on purchasing, selling, keeping, and mining. Each contributes to its habitat. Your meditation concern? It shows commitment, not naivety.

[uchegod-21]

If this question appear dumb, please pardon me, I just need clarifications.

Not actually a dumb question. It is makes sense too. What you are actually asking is if there's demand but no one willing to supply. What happens is that the price will high to the extent that it will entice Hodlers to sell.

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding.
 

In this industry, it is important that you follow your mind and not necessarily what people wants you to do.
Satoshi created bitcoin to be a currency for buying and selling if possible. But then, bitcoin has turned an investment asset where people are praised for HODLING more than for using bitcoin to buy goods or pay for services.

[Richbased]

~Snip~

I understand the perspective of your reasoning but I put it to you that no matter the price of Bitcoin, miners would keep mining, some persons who can't hold for a long time would still continue selling due to one reason or the other, there are still going to be long term hodlers so everyone is entitled to how they wish to go about with their Bitcoins.

 It's just like fiat, in the bank you see people coming to withdraw and others come to deposit money or make transfer and the bank keeps moving so also is Bitcoin, the only difference is that Bitcoin is decentralized while banks are centralized. So far as Bitcoin continues to exist there is still going to be buyers and sellers and miners will continue mining.

 It's impossible for everyone to hold their Bitcoins without some persons tending to sell off their own from time to time.

[Abu-Naim]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

According to my little understanding, Bitcoin will continue to be on circulation provided miners are still mining bitcoin. And if everyone hold their bitcoin, there will be some set of people that will be trading their bitcoin.
Traders will hold and also trade their bitcoin and some people will also be buying and selling with small price different in order to either accumulate more bitcoin when the price dump or to get their money for another thing.

[Hypnosis00]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

Indeed, it encourages people to hold but it never says we did this forever. This advice arises during the bear season as this will help to fasten the recovery but can't stop people from leaving in doubt and weaknesses, some will sell. We can't change how the crypto market works, selling and buying are very active because not all are holders, they are active traders who keep the market alive.

Of course, if mining rewards become small, it will discourage miners but if the numbers decrease, that will increase their rewards as well. It is expected that some miners will stop their operations because of huge expenses but some will stay and keep working. If the majority holds, it was not lead to end of crypto space but just an increase of price.

[umbara ardian]

The "selling off" of Bitcoin is inevitable, guys. Like everything in life, some people sell because they need money, some people sell because they "accidentally" . However, saying that "everyone" will HODL BTC forever is unthinkable. Miners also have to sell a portion of the BTC they earn to cover operating costs.

The fear of "not enough BTC" fortunately has not happened in the past 3 halvings. However, you need to remember that supply and demand always fluctuate. Rising market prices cause high demand and low supply, making buying more difficult. Conversely, bearish markets offer high liquidity and low prices, creating excellent buying opportunities.

A long-term perspective is extremely important. Bitcoin has seen phenomenal growth over the years, with each bull market pushing the price higher. Although there will be short-term fluctuations, the general trend is still upward. HODL is a good strategy, but not the only one. You can refer to many other methods such as DCA, swing trade, margin trade. Each method has its own advantages and disadvantages, you need to consider based on your circumstances and ability to accept risks.

[Antotena]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

They are encouraging people to hold so as to enable the price to finds another new time high, if e everyone sold in this small profit of yearly 50% gain, it will crash more than that percentage of everyone should sell but if Bitcoin go as high as big value, even if people sell, it will hold and more traders will be willing to buy and hold for long time. But there is no crime in selling because it's your money and it's your profit and better than having loss.

Do you know that right now, if halving should happen right now and the price average at this price continuesly, the miners will continue to be profitable because they survive when bitcoin was in $15k, when Bitcoin was around $30k, even now should be profitable for them. What you should know is this, if you are in profit and you know it's significant for you and you really want to sell, I advice you do so because nobody will tell you when it will retrace back.

[The Cryptovator]

We need to confirm transactions from which miners generate revenue. So bitcoin transactions won't be zero anyway. It's impossible to stop all the circulating supply at any time. Everyone can't hold Bitcoin; there are traders and businesses running on it. Also, there is an exchange that always makes transactions. So don't think that everyone will just hold their bags and sell. 

[shield132]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

Holding Bitcoins is good for financial gains but it's too egoistical to my mind. Money has to be in circulation in order to have an active economy, an increased number of users and usage. What's the point of holding gold if you are not going to use it? There is no point, life only becomes better when people start investing and working. Besides being an asset, Bitcoin is a payment method which makes it more attractive to be used regularly.
By the way, keep in mind that there are many people that buy high sell low, so don't expect that there will be a huge number of people who will hold bitcoin and won't sell. Many traders buy high sell low instead of buy low sell high.

[Odusko]

Is not realistic or true that everyone will want to hold their Bitcoin 100%, what happens to the Bitcoin traders whose activities are to buy and sell Bitcoin and also others who choose Bitcoin as their payment processor of payment modes, so for that's impossible to see a time where there won't be bitcoin buying and selling.
The market cap for Bitcoin is already in trillions of dollars and at that, we should know that it all the activities of those who buy and sell Bitcoin amount to that total market capitalization, so there can't be any time when we will not have activities of buyers and sellers in the Bitcoin ecosystem.

[thecodebear]

I have read several posts encouraging people to hold their bitcoin for the greater good of bitcoin and probably more reward in the future. I have also been able to buy some for myself and also holding. But there is this concern that usually pop up in my head anytime I am meditating and that is what will happen if everyone is holding their bitcoin and no one is willing to sell. This can possibly happen in the future when mining reward becomes too small. I know some people will say that miners will continue to mine and sell to sustain their business but when there is reduced selling, will mining still be a profitable business?

If this question appear dumb, please pardon me, I just need clarifications. 

1) Selling has nothing to do with mining being profitable. Mining rewards and the bitcoin trading market are completely different things.

2) Not EVERYONE is holding. Every single day there are tons of people selling bitcoin. There will never be a day when nobody is selling bitcoin. The idea to hold is to grow wealth a lot over time without effort (ie without trying to time the market) and to keep people from dumping on crashes in fear and then missing out on Bitcoin's growth. Holding in no way stops lots of bitcoin from being sold every single day.


So no, this is not a problem and never will be a problem.

[Maslate]

Isn't it obvious?  People hold Bitcoin to get more profit.  Holding Bitcoin will temporarily make the Bitcoin market rare due to the controlled market supply but I am sure that they will sell to realized profit.

I don't like the idea of many people holding Bitcoins. Logically, it will increase the price, i.e. will result in high profit for Bitcoin holders but on another hand, you have to keep in mind that it can also have absolutely different and negative effect, people might abandon Bitcoin if it becomes hard to acquire it. I am talking about the extreme moment that OP described, i.e. the moment when almost everyone holds and people rarely sell it.

You can’t control the mindset of these people who wish to hold their coins like there’s no plan of selling. They have seen how bitcoin price can speed up its increase in just few months of holding, so how much more if they will take 5-10 years of hodling and only sell when they reach their target selling price.

But in reality, it’s rare to find people hodling their coins like 5-10 years because humans are born emotional and greedy. They can be easily tempted to sell and make good returns if they see bitcoin price has already reach its new all time high.