The Bitcoin Dilemma: To HODL or Not?
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The Bitcoin Dilemma: To HODL or Not?

By Teodor | Essentials | 21 Sep 2020


Hello readers and friends! I am back here as a writer, after taking a long break, and being only a reader and comment writer. I hope all Publish0x readers and writers are well with their health and no one is affected by this bad virus, as I was, but also miraculously healed. However, that's different story, possible for another article. 

So, as I wrote in my comments and articles, some of you might remember, or not, that I am fan of holding (HODL) and staking, not trading cryptocurrencies. Before entering into the subject, let me remind you what HODL, Staking, and Trading means. 

What is HODLing, Staking, and Trading?

Hodl (often written HODL) is slang in the cryptocurrency community for holding the cryptocurrency rather than selling it. A person who does this is known as a Hodler and his/her action Hodling (or HODLing). It originated in a December 2013 post on the Bitcoin Forum message board by an apparently inebriated user who posted with a typo in the subject, "I AM HODLING." Originally used in relation to holding Bitcoin, it is now also used to describe holding other cryptocurrencies and tokens. (Compiled from: Wikipedia

Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. (Source: Coinbase

Hodling and Staking are part of Investing which entails building wealth gradually over an extended period of time. 

Trading involves more frequent buying and selling of stocks, with the goal of generating faster returns. When investing, the investment is often held for a period of time in contrast to trading, which is frequent and, many a times, multiple times during the day. (Source: Outlook Money

Now back to our main subject:

To Hodl Bitcoin or Not!?

I will not advise you what to do, instead will present a real fact happened recently: 100 Year Bitcoin HODL Plan of MicroStrategy Company, and you will decide alone. 

Publicly-listed MicroStrategy [MSTR] made waves last month when they announced that they would be moving $425 million of their cash reserves into bitcoin. The reason? A fear of inflation and an assumption of a weakening US dollar. In an interview with CoinDesk, Saylor put the reasoning simply: “I want something that I could put $425 million into for 100 years.” 

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Many people in the bitcoin space saw this as extreme validation. However, MicroStrategy is a stock listed company and as such, must focus on the response of investors. Since the first announcement on August 11th, MSTR is up 30%. The stock jumped 9% after the additional allocation was revealed few days ago. 

HODLing vs Staking

As for me, regarding HODLing Bitcoin and my experience with staking on Stakecube, where I have staked 5 coins (SCC, VITAE, BLOCK, PIVX, NAV), as the main stake SCC went down almost 40%, I lost in one month about half of my money. If I'd HODL that amount of money in Bitcoin, I would have over 30% gain! However, I am continuing to HODL, and on long term I am expecting SCC to grow again. But, investment in crytpocurrencies, it's still a gamble, so be aware and read the below disclaimer. 

Before investing and trading you should be aware of all the risks associated with cryptocurrency and stock trading. Trading cryptocurrencies and stocks carries a high level of risk, and may not be suitable for all investors. Before deciding to invest in or trade cryptocurrency you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could lose some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. 


Teodor
Teodor

Family man, entrepreneur, blockchain enthusiast, robotics, sustainable construction and real estate business owner since 1989.


Essentials
Essentials

I am Teodor, married with 1 beautiful Wife, having together 9 wonderful Kids and 17 terrific GrandKids, living in Romania, a country with fantastic landscapes, nice people and wrong politicians. Besides investing time with MyFamily and in the faith in God, MyDIP (my diversified investment portfolio) includes: real estate, passive income on real estate, crypto HODL, staking, masternodes, and sometimes crypto trade.

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