on the crypto
Many Bitcoin traders laugh at the idea of HODL. They think it is not a solid trading or investment strategy. If you buy and keep on the way, it is very likely that you will use the same approach on the way up. The rigidity of this method makes it difficult for many investors to lock in earnings.
However, the strategy is so popular that it has become a meme. Acceptance of HODL appears to be a bordering obsession. A new report reveals that millions of BTCs have not moved in the past year.
The owners refuse to sell even if they make big profits
The S&P 500 is up nearly 27% year to date. If the index ends the year with gains around that number, many investors would consider 2019 to be a good year.
Bitcoin owners are also experiencing a great year. The main cryptocurrency is over + 95% since the beginning of the year. The numbers line up. According to The Block, 61% of Bitcoin owners have profits.
Even with more than 250% higher earnings than the S&P 500, there is a sense that Bitcoin investors are far from satisfied. Many are expecting mind-blowing and jaw-dropping performance from the dominant cryptocurrency.
I say this because BitInfoCharts shows that 11,58 million BTC has not moved in over a year.
In other words, 64% of the over 18,04 million Bitcoins in circulation do not move. This means that only 6,46 million BTC are used for speculation or payments. At the current Bitcoin price (around $ 7), only BTC worth $ 48,99 billion has changed hands in the past year. This has huge bullish implications for number one cryptocurrency.
HODL is creating immense value for Bitcoin
Haters like Peter Schiff always claim that Bitcoin has no intrinsic value. They say that unlike gold that can be used for electronics, Bitcoin has no use. More importantly, it is not supported by anything that can prove its worth.
Well, Bitcoin's value comes from its scarcity. There will only be 21 million BTC in existence. In addition, around 4 million BTC is lost. Scarcity is real.
We spoke to Mati Greenspan, founder of Quantum Economics and asked if HODLer's 11,58 million has long-term bullish implications. He said to CCN: Yes!
The good news for HODLer is that Bitcoin is going to get scarcer in the coming months.
Halve to make Bitcoin more valuable, most likely
If analysts believe that scarcity determines the price of Bitcoin, then it would be fair to assume that the value of the cryptocurrency would be increasing in the coming months. In approximately six months, the Bitcoin block rewards will be reduced by half from 12,5 BTC to 6,25 BTC. This means that around 900 BTC will be released to miners every day.
The drastic drop in supply due to halving would at least ease the selling pressure. Lowering sales will likely drive up prices. This may be more than enough to trigger a huge buying frenzy. Therefore, HODL and halving are two of the strongest trends for Bitcoin.
