“Should an investor HODL on to their Bitcoin?” is a question asked by many an investor, especially since the cryptocurrency has had a notorious year of ups and downs. If you’re like many early adopters, investors and supports of Bitcoin, the answer is a simple – yes, but let’s fill the page. It is true that investing in Bitcoin is considered to be a highly volatile endeavor with its price going through constant ups and downs, but it is also important to note that as of late, Bitcoin is witnessing a meteoric rise, which has been the reason why the crypto has been in the news more lately and has attracted the attention of many big-name brands and independent investors who are now looking to Bitcoin as a viable investment option.
Before we move on to whether or not you should HODL on to your Bitcoin, it is important to first find out what HODL means. For those of you who are unaware, the term “HODL” is commonly used by the Bitcoin investment community and is also considered an investment strategy, despite it being the misspelling of the word “Hold.” It refers to the strategy that was adopted by early Bitcoin investors who would tend to buy and hold the crypto for long-term gains. Turns out, this is also a solid strategy for those who do not want to end up making big long-term losses due to short-term volatility, something that Bitcoin is apparently very good at if you’ve been paying attention to the market.
Why HODLing Bitcoin Makes Sense?
Many crypto investors would tell you that holding on to your Bitcoin investment is a good strategy if you are looking to make long-term gains. This is mainly because all cryptocurrencies are a form of digital currency that is supported by the blockchain. In other words, they function as a medium of exchange in digital transactions, and they are also held as an investment or asset and traded on apps, such as the bitcoins-evolution app, etc.
If you’ve been paying attention to the crypto investment space lately, there are many independent as well as large investment groups that are setting their sights on cryptocurrencies such as Bitcoin, Ethereum and so on because of their stellar performance. This has been driven further by the fact that cryptocurrencies are a decentralized unit of exchange which is a major feature of cryptocurrency, since there is no central authority governing whether the prices should go up or down.
There is also a set market cap for the amount of tokens that will be in existence which is another added advantage since investors do not have to be concerned about the devaluation of Bitcoin just because a central bank decided to print more money. All this means only one thing – that the value of Bitcoin is destined to keep rising, with some analysts estimating that Bitcoin’s value could reach $200,000 by 2030.
Besides, we are living in a post-COVID world, where everyone has been forced to make the switch to digital, including businesses. With the sharp rise of online transactions, people are going to want a stable, reliable and safe method of carrying out digital transactions. The good news is that there is already a fair amount of Bitcoin as well as other cryptocurrencies that are circulating the market, which makes it easier for businesses and individuals to make the switch from using traditional fiat currencies to cryptocurrencies to make digital payments.
The best part about the HODL strategy is that you simply can’t lose. Just ask the early investors of Bitcoin who held on to their investment and have become millionaires in a relatively short period. Keeping that in mind, you wouldn’t want to “HODL” out on investing in Bitcoin.