The term “hodl” is used in the crypto and Bitcoin community to express one holding their bitcoin long term, and resisting the urge to sell for a profit, or to cut losses. The origin of the term hodling comes from a BitcoinTalk forum post by user GameKyuubi on 18 December 2013, titled “I AM HODLING“. The post is a drunken rant on being a “bad trader”.
Hodling has become a strategy that many people find to be the best bet for their financial futures. It is a simple concept of buying and securely holding your bitcoin, preferably in a cold storage wallet solution. No need to obsessively watch green and red candles on trading charts, or listening to the advice of social media influencers and so-called experts in the bitcoin world. If you are committed to the idea of bitcoin becoming a mainstream alternative to traditional assets and money, the concept of hodling may be the most obvious to consider. There is no worry about losing your gains in the ebbs and flows of the daily trading cycles.
Reasons to consider hodling your Bitcoin:
- Scarcity – There will be ONLY 21 million bitcoins to ever exist. With a population of 8 billion humans, acquiring 1 bitcoin puts you in the top 0.2625% of the population. Once you sell your bitcoin, you may never get any “real” bitcoin back now that Bitcoin ETFs have been approved.
- Price – Bitcoin’s USD value has historically risen from its conception. Selling your bitcoin may lead to you having to buy again at a higher price. Your buying power can erode as the price of bitcoin continues to rise.
- Inflation – The value of your bitcoin as a store of value is a hedge against inflation. Traditional fiat currencies are subject to constant inflation. Accumulating fiat in a bank account at today’s interests rates does not keep up with inflation. The money in a traditional savings account is typically sitting there losing buying power.
- Ownership – The ability to self-custody bitcoin is a form of financial power. It is a means of freedom to secure your own assets. You are in complete control.
Bitcoin’s USD value often swings widely from one day to the next. If you can master the power HODL, you can live a care free life knowing your investment in bitcoin will forever increase in value ad infinitum.