Ask anyone who owns cryptocurrencies what to do when a cryptocurrency falls in price and they will surely respond with a resounding “HODL!” . If you are not in the world, surely you think two things: one, that he meant “Hold” (“hold” or “hold” in English) and two, that it is surely some kind of cryptocurrency jargon . Which multiple choice test, the answer is “c) Both are correct”.
In the world of crypto, there are several memes (and meme coins , a whole fascinating underworld), such as the aforementioned “HODL!”, “To the moon” or whatever, Elon Musk says on his Twitter. Today we are going to know the history and meaning of the first one, “HODL!”, A most peculiar word whose origin dates back to 2013 and which begins with something as simple as a typographical error in a forum.
We go back to 2013, a most interesting year for cryptocurrency par excellence, Bitcoin. Bitcoin started the year with a value of $ 13.40 and was hit by two huge bubbles. The first happened in early April when its price soared to $ 220 and dropped sharply to $ 70 by the end of the month.
The second happened at the end of the year. At the beginning of October, Bitcoin was trading at $ 123.20, a price that shot up to $ 1,156.10 in December. Insanity, spectacular growth and rather short-lived, as the price fell to $ 760 a few days later.
It was precisely in December when GameKyuubi, a user of the Bitcointalk forum, published the message that would give life to one of the best-known memes in the world of crypto. Its title: “I AM HODLING” . It’s content: an explanation of why it was holding its cryptocurrencies even though the price was plummeting. It says the following:
I wrote that title twice because I knew it was wrong the first time. It’s still wrong. Does not matter. My girlfriend is out in a lesbian bar, BTC is crashing. Why am I holding on? I’LL TELL YOU WHY. It is because I am a bad trader and because I know that I am a bad trader. If you good traders can spot the highs and lows pit piffy wing wong wangjust like that and make a million dollars, sure, no problem, bro. In the same way, loose hands are like “OH NO THIS IS GOING DOWN, I’M GOING TO SELL, HAH, HA”, and then they’re like “OH GOD MY ASS” when smart traders who KNOW WHAT THEY ARE DOING buy. again, but you know what? I am not part of that group. When traders buy again I will already be part of the market capital so GUESS WHO ARE THE DAY TRADERS THAT DECEIVE YOU -NOT ME-! Those threads of mockery saying “OHH YOU SHOULD HAVE SOLD”, YES, SHIT. SHIT SHOULD HAVE SOLD. I SHOULD HAVE SOLD MOMENTS BEFORE EACH SALE AND HAVE PURCHASED MOMENTS BEFORE EACH PURCHASE BUT DO YOU KNOW WHAT? NOT EVERYONE IS AS COOL AS YOU. You only sell in a bear market if you are a good day trader or a deluded noob. The people in between hold on. In a zero-sum game like this, traders can only take your money if you sell.
Well, I had some whiskey. In fact, he puts whiskey in the bottle. It doesn’t matter, sue me. “
READ: This guy bought a pizza for 10,000 Bitcoin in 2010 - if he still had it, he could buy all of this today
What the good thing about GameKyuubi wanted to say is that he was not going to sell . He was not a good trader and did not know how to identify peaks of rises and falls to sell or buy at the exact moment. Instead, the user opted for a more moderate decision: keep their Bitcoin wallet. “To hold”, in English.
And is that “hodlear” is an investment strategy like any other. Instead of being aware of the ups and downs typical of a risky asset such as cryptocurrencies, “hodlers” maintain their assets regardless of price variations in order to obtain long-term profitability when the price stabilizes or reaches a certain number.
The opposite is the traders, who move their assets based on their value to obtain more short-term profitability. If the previous investment strategy requires a certain cool mind so as not to make hasty decisions, this strategy implies having some knowledge of the stock market and knowing when to sell (high) and buy again (cheap).