HODLer rotation is good. Here's why.

[NotATether]

Many people say that for a coin to be successful, there must be a large proportion of diamond hands. While this is true, is not the only required element.

There must also be organic selling as well. And by saying that, I specifically mean "not profit-taking sells", which is something that is absent from most rugpull projects, which just take profits and dump.

To find an example of HODLer rotation, the best and easiest example of this is Bitcoin. Our community is the first to successfully make new investors buy in and old investors to exit with a profit (or loss). The proof of that is almost all of the User IDs in the first 5 digits are now dormant.

Most exited their postions and no longer own Bitcoin. However, the price does fine even without their involvement, because newer investors arrive to buy.

This does not make it a ponzi scheme; this is simply how a publicly tradeable asset works.

Other examples of HODLer rotation can be found in Litecoin, Dogecoin, Dash, previously Namecoin, and everything that's come after it ever since.

Udi Wetheimer from Taproot Wizards has something to say about this too:
 

PAY ATTENTION VERY CLOSELY I’M ABOUT TO TELL YOU THE BEST-KEPT SECRET IN CRYPTO

the most important ingredient for the price of any coin (or any asset really) to go exponential is HOLDER ROTATION.

which means after a big move up, old holders need to sell, and new holders need to be there to buy them out

yes for price to go up people need to SELL. here’s why

contrary to popular CT folklore, no one actually buys coins to hold them forever and look at the balance. when people make investments it’s because they’re hoping to monetize the gains one day

CT will do anything in its power to convince you otherwise: “are you telling me i can sell my chillhouse for $10,000 one day?” “no neo, i’m telling you that when you’re ready, you won’t have to” all CT memes for basically any coin are designed to psyop you into never selling

but this is actually bearish behavior. very few people can resist the urge to sell a 10x let alone 100x or 1,000x no matter how delusional they are. therefore the only way a coin can keep going after a substantial move up is if there are enough highly-motivated new buyers to buy out a very big chunk of old holders

a community’s focus should always be on lining up new holders, not on psyoping existing ones. there’s only so far most existing holders can take you

the desire to convince holders to “diamond hand” is understandable, as that can prolong the rally that each cohort of holders can maintain between rotations. but ultimately it is a fool’s errand. every cohort must eventually sell. there’ll always be outliers that stick around for multiple rotations but most won’t do this. communities that focus on delusional diamond-handing and nothing else tend to have one explosive move and then they die and go to zero.

but the best performing assets long term have been the ones where communities were able to consistently and repeatedly perform big rotations where old holders get to sell and new enthusiastic holders buy them out. some high profile examples of this playing out in the last few years are dogecoin, cryptopunks, and solana. whenever a rotation completes successfully, an explosive move follows that breaks everyone’s minds, because typically they didn’t notice that the rotation happened

as i’m looking at the crypto landscape right now i’m not seeing many coins that are about to complete a fresh rotation. there are some that are now beginning the long journey of holder rotation, like eth for example. that might complete within a few years. but for now the old holders clearly control the conversation

but the only asset i can find that has just COMPLETED a massive rotation is bitcoin. look around you. all the big bitcoin influencers are completely new faces. most of them in suits. some of them are robinhood kids trading options. but all of them are completely new

all the data is SCREAMING that old holders are out

it is clear as day at this point. which means you really don’t have much time left

the first mindfuck is coming.

it’ll be way bigger than you think.

[Nathrixxx]

Many people say that for a coin to be successful, there must be a large proportion of diamond hands. While this is true, is not the only required element.

There must also be organic selling as well. And by saying that, I specifically mean "not profit-taking sells", which is something that is absent from most rugpull projects, which just take profits and dump.

In a perfect market economy like the bitcoin network, all we need is to keep having buyers and sellers, the market is going to be much interesting and ever be, because there will always be a demand as long as the buying and selling are taking place at each stages of the market, going to altcoins, some of these are pump and dump projects as you mentioned, because they lack the future utilities that can make investors remain on the same projects for long without opting out, while Bitcoin is more reliable on this.

[TheUltraElite]

Both buying and selling is important and I am sure that most people here even though will say hodl hodl, will themselves sell for profit at the same time.

And that is perfectly fine because you own those coins and you are free to sell them.

A cycle is important to get enough money in and out of the market but twitter people out there, owners of ceypto related businesses and all, I take their words with salt.

If you want to hold, do it, if you want to sell do it.

[X-ray]

Organic sellers and buyers are always good.

Hodler rotation is to keep the price from plummeting because old holders aren't buying bitcoin at higher price compared to their holding because their perception is different to newcomers whereas the newcomers considers $100k as cheap and still have the potential to go up so yeah I agree that holder rotation is very important.

This is also why increase of mass adoption is also important to have hodler rotation.

[davis196]

There are new HODLers in the Bitcoin world because many people see the potential for BTC price growth. Imagine the BTC price dropping or going stagnant for a long period of time. Will there be any new BTC HODLers? I don't think so. Market liquidity is as important as long term HODLing. Having little liquidity on the market would mean that the prices would easily drop every time there's a FUD event, which might cause a bear market, which would demotivate the HODLers from HODLing. It's clear that both the HODLers and day traders are kinda supporting each other at keeping the price volatile and bullish.

[EarnOnVictor]

I understand your point, but some initial efforts must first be put in place before this is sustainable. However, Bitcoin is a better example, rather than Dash and the rest, they are only being sustained because this is cryptocurrency, and cryptocurrency has its season of appreciation due to FOMO, so those altcoins use the grace of Bitcoin to sustain.

Now, if it were to be other assets outside crypto, it would not be as easy as this, so I don't buy the idea of this principle. The "diamond hand" will always be a better sustenance for any asset rather than divesting. If not liquidated and the new investors add their liquidity, the coin will better appreciate in value compared to when the divestment happens.

[crwth]

I agree with this because sometimes you need to really have newcomers and have them invest what they can. If no one is willing to sell for them, it will be hard for them to acquire, and in some way, that impacts negatively on the price, but that's just growth in my opinion, and those very old holders would purchase it back.

[un_rank]

The easiest example I can think of for non-profit taking trades is paying for a service. Take the signature campaigns here as an example, every week thousands of dollars worth of bitcoins are exchanged between wallets, some go to exchange wallets and are quickly sold, again not for profit, but to get the value of the coins.

If even just 1% of the global market can adopt Bitcoin for this singular purpose, it will skyrocket demand.

- Jay -

[mindrust]

Recently some dude sold 80k bitcoins. People freaked out. Bwaa he is dumping on us, bwaa he wasn’t a real hodler, what if the prices crash etc. Luckily the price hodl strong and we haven’t experienced a market crash so less people cried like this but, even if the markets crashed, it still wouldn’t be a problem. Somebody somewhere got rich and wanted to enjoy his wealth. Why should that be our problem? Is btc that fragile? If btc can collapse for good just because someone wanted to sell his position, then maybe it is not what we think it is. Years ago Somebody bought a pizza for thousands of bitcoins for fucks sake. Let’s grow up and stop caring about what other people do with their money eh?

[NotATether]

I understand your point, but some initial efforts must first be put in place before this is sustainable. However, Bitcoin is a better example, rather than Dash and the rest, they are only being sustained because this is cryptocurrency, and cryptocurrency has its season of appreciation due to FOMO, so those altcoins use the grace of Bitcoin to sustain.

They are both examples of HODLer rotation, but Bitcoin has simply done a much larger rotation than Dash and the rest of the early coins.

Now, if it were to be other assets outside crypto, it would not be as easy as this, so I don't buy the idea of this principle. The "diamond hand" will always be a better sustenance for any asset rather than divesting. If not liquidated and the new investors add their liquidity, the coin will better appreciate in value compared to when the divestment happens.

Actually, it models very well even for completely different assets.

$NVDA stock for example, has many buyers. Also a lot of people who sold prior to 2023..

[Wake Up]

We all know that HODLing doesn't always pay off. I'm only a proponent of HODLing Ethereum and Bitcoin. Furthermore, any altcoin shouldn't be HODLed for long periods. Better investments can be made with periodic profits. My strategy is that if the altcoin I buy reaches the desired value, I realize the profit. Then, I use this profit for Bitcoin.

 Bitcoin and Ethereum are assets that can be held for a long time, in my opinion. Historical data also suggests this. Bitcoin has seen significant growth after all the halvings so far. Furthermore, considering the limited supply and increasing demand, it will be used more in the future. In a scenario where specialized systems integrated into everyday life, such as the Lightning Network, continue to grow and become ingrained in everyday life, it wouldn't be surprising to predict that Bitcoin will reach very high levels. Furthermore, in the crypto world, we know that trust should always be chosen, and therefore, the safest option is Bitcoin, the digital gold.

[Zaguru12]

There must also be organic selling as well. And by saying that, I specifically mean "not profit-taking sells", which is something that is absent from most rugpull projects, which just take profits and dump.

People seriously need to understand that the market needs both buyers and sellers not because of rotating holders but because it seriously contributes to the network. If all bitcoin are been hold and actually not been rotated that is buying and selling isn’t taking place then it will create low onchain activity and this will greatly affect the bitcoin market because there wouldn’t be much work to do onchain or would there be more incentives for them since more transactions means more transaction fees plus with the continual reduction of the block reward this transaction fees will important to miners, less of it will mean less incentives for them. So profit taking aside the usual holders rotation also helps the network.

Recently some dude sold 80k bitcoins. People freaked out. Bwaa he is dumping on us, bwaa he wasn’t a real hodler, what if the prices crash etc. Luckily the price hodl strong and we haven’t experienced a market crash so less people cried like this but, even if the markets crashed, it still wouldn’t be a problem. Somebody somewhere got rich and wanted to enjoy his wealth. Why should that be our problem? Is btc that fragile? If btc can collapse for good just because someone wanted to sell his position, then maybe it is not what we think it is. Years ago Somebody bought a pizza for thousands of bitcoins for fucks sake. Let’s grow up and stop caring about what other people do with their money eh?

People will talk most especially when there are still people who do not like bitcoin, so news like this are seeing as an opportunity to actually to spread FUD and force weak hands to sell. If not now any little sell is announced by this FUDist just to spread their narrative. Every bitcoin holder has a profit target where she will sell there is no second guess about this, there is no infinity holders

[BitGoba]

People hold and save in Bitcoin because it is a superior form of money.
They buy Bitcoin to protect themselves from the inflation of fiat currencies.  Why would anyone sell hard money for a currency that melts away like an ice cube due to inflation?
Altcoins, on the other hand, are nothing more than pump-and-dump Ponzi schemes, created to enrich the founders at the expense of the naive and those who don’t understand what money is, don’t understand what Bitcoin is, and have a high time preference, seeking quick gains. Altcoins are a game bigger fools , a zero-sum game where someone has to buy for you to profit.No one wants to hold altcoins because they are just pump-and-dump schemes, and people quickly get rid of them

Altcoins are not money like Bitcoin.
When you have money, money is a medium of exchange and a store of value.You can go to El Salvador and pay for a hamburger with Bitcoin in McDonald’s, just like in video https://www.youtube.com/watch?v=25_VkeiT4R0  Or you can go to Steak ‘n Shake and buy a hamburger with Bitcoin,     https://www.youtube.com/watch?v=P_5ve6rz61g

Money is a medium of exchange. You receive a hamburger, and the owner of McDonald’s or Steak ‘n Shake receives money, which they can later exchange for other things when needed.Money as a medium of exchange circulates within the economy.

You don’t need a next buyer like with altcoins because you already hold real money . No one accepts Ethereum, Dogecoin, or other “shitcoins” directly , you have to sell them first to realize a profit and get real money.With Bitcoin, you already have real money that you can spend immediately.

In economics, there is a principle called Gresham’s Law, which states that when two forms of money are in circulation , in this case, Bitcoin with a hard monetary policy and a depreciating currency losing value due to inflation , people will tend to spend the "bad" money and hoard the "good" money. That’s why people save and hold Bitcoin and don’t want to spend it.

[Solosanz]

Holder rotation will prevent from sudden huge crash which could ends Bitcoin.

This is what happened to Tulip Mania where all the holders hold their own tulip because they speculate it will worth higher as long as they keep it.

But, this could harm the ecosystem, once the holders want to sell the tulip since they have a lot, there's no one want to buy at high price.

[Smartprofit]

In my opinion, the change of holders of the first cryptocurrency is a normal organic process. The price of bitcoin grows over time. The difficulty of mining bitcoins by miners also grows over time. Accordingly, a large number of investors and miners appear who have purchased a large number of bitcoins at a relatively low price. However, people do not need money, but those benefits (goods, works and services) that can be purchased for this money. Accordingly, at some point in life, they may decide to sell their bitcoins! And this is normal! ✨

At the same time, in my opinion, when holders change, the decentralization of the distribution of bitcoins between holders should not suffer. Therefore, I am a little concerned about the fact that the old holders are individuals, and the new ones are large financial corporations🏛️

In addition, a very interesting question: to whom will these new holders sell bitcoins? Who will become the new buyer of the first cryptocurrency? Individuals?  However, at the moment, interest in bitcoin from individuals is minimal.... It remains to assume that the new holders do not plan to sell bitcoin at all, but plan to build a new financial system on its basis. It will be interesting to observe this process!🤹

[SquirrelJulietGarden]

Holder rotation will prevent from sudden huge crash which could ends Bitcoin.

This is what happened to Tulip Mania where all the holders hold their own tulip because they speculate it will worth higher as long as they keep it.

But, this could harm the ecosystem, once the holders want to sell the tulip since they have a lot, there's no one want to buy at high price.

If holders don't sell bitcoins forever, there will be less and less bitcoins available in circulation for people to trade or invest money in. The circulation of bitcoins among different people - either investors, traders, speculators - in the market makes its lively and also noise to attract new participants into the market.

I never think that huge crashes have anything to do with Holder rotation or not, as crash happens when there is FUD news and selling pressure is bigger than buying demand as well as there is forced liquidations on big exchanges that support and trigger crash to hits its deepest price before bouncing back.

There is very minority of Bitcoin holders don't have plan of selling their bitcoins after purchasing and holding for a while. So I have no worry about disappearance of bitcoins in circulation by Bitcoin diamond hand holders.

[xzone]

In my opinion, the change of holders of the first cryptocurrency is a normal organic process. The price of bitcoin grows over time. The difficulty of mining bitcoins by miners also grows over time. Accordingly, a large number of investors and miners appear who have purchased a large number of bitcoins at a relatively low price. However, people do not need money, but those benefits (goods, works and services) that can be purchased for this money. Accordingly, at some point in life, they may decide to sell their bitcoins! And this is normal! ✨

At the same time, in my opinion, when holders change, the decentralization of the distribution of bitcoins between holders should not suffer. Therefore, I am a little concerned about the fact that the old holders are individuals, and the new ones are large financial corporations🏛️

In addition, a very interesting question: to whom will these new holders sell bitcoins? Who will become the new buyer of the first cryptocurrency? Individuals?  However, at the moment, interest in bitcoin from individuals is minimal.... It remains to assume that the new holders do not plan to sell bitcoin at all, but plan to build a new financial system on its basis. It will be interesting to observe this process!🤹

We can all see the interest of large corporations in bitcoin and cryptocurrencies now. Going forward, companies will be entering the game more than individual users. Costs are higher now, and I don't think prices will drop significantly, and these companies will buy as much bitcoin as they can at the first opportunity.

But will this be true for other altcoins? I doubt it. Those looking for quick profits are investing, and many projects may not be very successful in the long run.
Bitcoins circulation will decrease and its value will increase daily, but the same cannot be said for the rest

[Frankolala]

Hodlers and traders are the ones that keeps the network going and the increase in price overtime. Hodlers rotation is inevitable because we must sell those coins someday. If we don't, when we pass on, the new owner that inherited your bitcoin will definitely sell. Selling is the only way to benefit from your bitcoin investment after a long time of holdi, and buying is the only way to own bitcoin. This makes hodlers rotation a must.

[Sticky Bomb]

Buyers and sellers strengthen the network. It shows Bitcoin is steadily on the move and not stagnant, which is one true characteristics of real money, the ability to move from one destination to another and create value.

The success of the old holders remaining and those exiting the markets motivates new holders to buy up and continue the holder rotation for future profits, even institutions and governments have massively joined to hold in the past few years and the cycle continues while the prices shot up in response to more holders coming in than those exiting the markets.

[BlackBoss_]

Buyers and sellers strengthen the network. It shows Bitcoin is steadily on the move and not stagnant, which is one true characteristics of real money, the ability to move from one destination to another and create value.

Buyers and sellers do nothing for strengthen the Bitcoin network or blockchain and this task belongs to Bitcoin miners and Bitcoin full node operators. The Bitcoin blockchain difficulty and Bitcoin network hashrate decide its strength and security.

Buyers and sellers can do their trades on centralized exchanges that don't make any on chain transaction and in such deal, no demand on Bitcoin transaction on chain.

The success of the old holders remaining and those exiting the markets motivates new holders to buy up and continue the holder rotation for future profits, even institutions and governments have massively joined to hold in the past few years and the cycle continues while the prices shot up in response to more holders coming in than those exiting the markets.

Bitcoin ROI over years is very good and stimulates many outsiders to be greedy and want to become Bitcoin insiders, investors and long-term holders. It is how Bitcoin adoption gets bigger with time and will continue its expansion in future years.

If you can repeat what successful Bitcoin investors did in past years and past market cycles, you can succeed and get good profit like them as well.