HODLING Bitcoin Is a Great Way Using Bitcoin
Stop listening to people that say HODLing Bitcoin is not good.
In the Bitcoin world, there is a special category of people: the Bitcoin Maximalists. These people have an unshakeable faith in Bitcoin, and are willing to do anything to support its revolution. They are convinced that in the cryptocurrency industry, there will be only one left, and that will be Bitcoin.
The Bitcoin Maximalists can be seen as missionaries who are willing to make every effort to help Bitcoin achieve its mission.
To fully accompany Bitcoin in its mission requires humility, patience and resilience. The Bitcoin Maximalists have no shortage of these qualities. Their strategy with Bitcoin is simple: HODLing Bitcoin no matter what.
When Bitcoin entered a very strong bear market in 2018, the Bitcoin Maximalists’ HODLing Bitcoin strategy kept the price above $3K.
So, contrary to what many people claim, HODLing Bitcoin is already a way to use Bitcoin, and it’s even a great way to do so as I will explain in what follows.
The people who say that HODLing Bitcoin is not using Bitcoin are often people from the traditional monetary and financial system who have not well integrated the complete paradigm shift proposed by Bitcoin.
Current Monetary and Financial System Pushes You to Spend Your Money
Since the end of the convertibility of the U.S. dollar into gold, unilaterally decided by Richard Nixon in 1971, fiat currencies have not been based on anything tangible.
Since that time, politicians and central bankers have been pursuing policies of monetary creation aimed at constantly increasing the money supply in circulation.
Printing more and more money is the answer used almost systematically by the proponents of the current monetary and financial system to address all the ills of the economy.
As soon as the economy shows the slightest sign of slowing down, interest rates are lowered to allow the creation of ever more money that is based on nothing.
So it is no surprise that the Federal Reserve has just decided on an historic 50 basis point cut in interest rates at a time when the world is going through a phase of total uncertainty with the coronavirus crisis.
The people at the head of the current system live in a total utopia hoping that the economy will never stop growing. This is a very strong misconception.
The virtually uninterrupted growth of the money supply that has been in circulation for over 40 years devalues what you own.
For example, 1 U.S. dollar in 2020 is actually worth less than 1 U.S. dollar in 1980. And the trend is not about to stop.
The monetary policy of the current system gives people the impression that money is something easy to get. This pushes people to spend more and more.
What’s the point of trying to save fiat money that is bound to be devalued?
There is no point in that. So you have to invest if you don’t want to see inflation fighting against you, or spend on goods and services.
Many people who are used to this flawed system don’t understand the Bitcoin Maximalists’ attitudes who choose to keep their Bitcoins without spending them.
Bitcoin Is Totally Different From the Current System
People who haven’t bothered to discover Bitcoin don’t understand that Bitcoin is a totally different system from the current monetary and financial system.
The total supply of Bitcoin is set at 21 million units, and it can never be changed.
Furthermore, the creation of new Bitcoins is constantly slowing down over time. In 2020, after the third Bitcoin Halving, the annual inflation of the Bitcoin supply will fall below 2% to 1.8% for the first time.
Starting with the third Halving, which will take place around May 12, 2020, there will be only 900 newly created BTC every day.
In the future, the scarcity of Bitcoin will only increase as Bitcoin Halving is an event that automatically repeats itself every 210,000 validated transaction blocks.
In the future, somewhere around 2140, when all Bitcoins have been created, this inflation of the Bitcoin supply will be equal to zero.
You read that correctly. When all 21 million Bitcoins have been mined, there will be no more new Bitcoins created.
These unique characteristics of Bitcoin make it regularly compared to digital gold. They guarantee that 1 BTC of today will always be equal to 1 BTC of the future. This is a verifiable fact that is guaranteed by the Bitcoin source code.
Bitcoin’s motto is simple: “Don’t trust, verify”.
Bitcoin is totally transparent, which again differentiates it from a totally opaque monetary and financial system that many people don’t understand how it works.
Indeed, the proponents of the current system prefer that the majority of people do not understand how it works, otherwise a revolution may well come about, as Henry Ford pointed out:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
— Henry Ford
Bitcoin Gives You the Choice by Protecting What You Own
Through its unique and immutable technical characteristics, Bitcoin returns power to the people. It is a true democracy that gives you back control and fully protects what you own.
The fact that Bitcoin guarantees you protection of your wealth gives you a real choice.
With Bitcoin, you can choose to save what you own rather than spend it on anything.
As Bitcoin is scarce, with demand for it growing in the future, its price will inevitably rise. In fact, it’s in your best interest to keep your Bitcoin safe.
Let me remind you again of the numbers: 21 million Bitcoins for 7.8 billion people on Earth in 2020.
According to the latest United Nations estimates, the world population will continue to grow in the coming years to eventually reach 9.7 billion people in 2050, and then 11 billion people in 2100.
In 2100, there will still only be 21 million Bitcoins for those 11 billion people on Earth.
So if you own 1 Bitcoin in 2020, you have every interest in keeping it preciously by fundamentally believing in a Bitcoin system that is a real paradigm shift.
HODLing Bitcoin Is a Great Way to Support Bitcoin
By totally changing the rules of the game in relation to the current monetary and financial system, Bitcoin makes the HODLing strategy totally appropriate. Indeed, by keeping your Bitcoins, you don’t lose money. On the contrary, you gain money.
HODLing Bitcoin is a great thing for you, but also for the Bitcoin network.
By having full confidence in Bitcoin, Bitcoin Maximalists can HODL Bitcoin no matter what. Whether the price reaches $20K as in late 2017, or $3.5K as in 2018, Bitcoiners keep their Bitcoins.
By doing so, they not only get richer as time goes by, but they also do Bitcoin a service.
HODLing Bitcoin is a strategy that makes the supply of Bitcoins in circulation even scarcer. The supply that naturally shrinks over time is made even more scarce by this practice. With demand continuing to grow, Bitcoin price can only increase.
Increasing Bitcoin price allows more and more people to take an interest in Bitcoin, which plays an essential marketing role in attracting new users.
Contrary to what many people claim, HODLing Bitcoin is, therefore, an excellent way to use Bitcoin.
Rarely does this practice benefit you both individually by increasing your wealth, but also collectively by supporting the mission of the Bitcoin Blockchain while allowing new people to discover this revolutionary new system.
Bitcoin stands out once again by showing that it helps build a fairer system for the greater world that truly empowers you as an individual.