Why Refusal to Cash out Profits in Crypto Might not be Certifiably Insane

Just HODL baby

And it has served them well

Without an unwithering belief in the system, and one another, the rise in price could never have been achieved. I use the word achieved instead of occurred because it was only with the collective action of a large number of individuals that it could have happened. HODL is the thing which enabled the growth and it is what will sustain its ascent — with a failure to adhere to the moto leading to sharp decreases through sell offs and a lack of support.

Price rises can be be understood from a basic economic concept

Supply and Demand

Nobody wants to sell and because the cost has grown so high so quickly there is tremendous interest in the market. Interest breeds a willingness to get involved.

The problem is that less 1,000 people own 40% of the bitcoin market

Signalling is everything in stock but it is even more critical in Crypto

HODL is more remarkable when you consider this

If you double your money in a month when nothing changes that should make you question your position. Some people have 100 times more than they did last year.

The same may be true of investing in traditional stocks but they provide far more stable footing through which a decision can be made. Analysable data, historical performance and projections all provide a level of certainty and understanding that there is nothing for Crypto. It’s growth is unprecedented

You can’t go broke taking a profit, you aren’t financially secure until you cash out. Paper wealth is dangerous if you have no financial certainty atop it.

If you’ve become rich thought Crypto it would seem sensible to diversify to insulate yourself against volatility.

But if you have 1,000X your original investment how does it feel when your investment loses 20% of it’s value overnight? to continue to hold in the face of those crippling stresses is remarkable.

That is what is remarkable about HODL

All this begs one simple question

Is Crypto Simply an Intellectual Construct?

If you believe the former the current prices must be nauseating and fill you with glee in equal measure. You will see those claiming to have amassed millions on little more than an idea on the back of a fag packet and feel like the house of cards is on the brink of tumbling down where you can say I told you so. If your version of events become reality you can feel safe in the knowledge that those people who HODL’ed ended up losing it all.

But what if you are wrong?

What if Crypto is the financial stimulus needed to birth a new age of economics?

How is Crypto any different to Quantitative easing?

Crypto has been unprecedented in the immediacy of its growth. It has added Billions of $ to the overall GDP of the world already

It’s still early in the day but there is hope.

Or we could simply be creating a new 1%t by encouraging the hype

Personally I believe it is the latter

Crypto will rise or fall based on the perception of the people, and the reality the majority believes. What is true is not something which is typically decided rationally. Wars based on the alleged murmurings of deities in the ears of individuals attests to this.

HODL is not insane if it enables a revolution — it already has

My intrigue then is simple

Anyone want to start a Cryptocurrency?



CEO / Founder / Coach @FirstbaseHQ Empowering people to work in their lives not live at work ✌️✌

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Chris Herd

CEO / Founder / Coach @FirstbaseHQ Empowering people to work in their lives not live at work ✌️✌