Quote from: Wind_FURY on January 11, 2020, 06:35:54 AM

Quote from: aoluain on January 08, 2020, 11:31:53 PM

Everyone knows that holding or HODLING your coins is a key part of
getting involved in Bitcoin and Crypto, the idea is not to get rid of them
in case you miss the next big pump, which could happen at any time for
example.

NO, the idea is to HODL, until fiat currencies are valued in Bitcoin, until the time comes that "you don't have to sell for millions" one day, until hyper-BITCOINIZATION.

Actually you should hold endlessly. Save what you can, spend only what you must.

If you earn in bitcoin, only exchange what you need for living expenses.

If you earn in fiat, spend what you must and the rest move it into bitcoin.

While i use bitcoin here, this is actually what you do when you use money that does not lose value overtime. Sometimes called deflationary, it is actually simply not losing value like fiats do. In the case of bitcoin, it does gain a bit of value as some coins are lost forever (lost wallets, etc). But this is the natural thing to do. Think of what people of the past did when they had gold coins and no banks, or what you do in a fantasy game. You will notice, albeit few people pay attention, than in those games your coins don't lose their purchasing value. Unless the market is intervened, such as in MMOs. And what you do is just keep them, maybe save to buy something later. This is exactly it... The Austrian school of economy. Save then buy, not get in debt to buy now and spend the rest of your life paying the debt... You are unfortunately used to the later, as promoted by the dominant Chicago school of economy worldwide. But they don't tolerate and in fact fear money that doesn't lose value overtime, which bitcoin is.

"hyper" is a silly word, don't use it. Use bitcoin as much as you can, then fall back to deprecated fiat when there is no choice. The transition isn't easy, and probably not quick. Its not just the coin, its the whole mindset. I still see people here outraged if a bank asks for fees to keeping their money; duh, that's exactly how banks should work, at least honest banks. But you shouldn't be using banks unless absolutely needed anyway, the bank business will shrink in this new reality, unless they embrace and adapt to the new situation, become exchange, wallet, payment processor, etc during the transition which might last quite a while.

You are going against people's habits here. Hey, do not get in debt to buy that car, save until you have the money to buy it. Why this is very American thing to do, but the Chinese tend to do it the other way. Ironic actually.

Holding is just another way to say save, of course you don't need a savings account, your money isn't losing value, and sometimes even gains a bit. this is Bitcoin in its final stage, if you came thinking you could buy bitcoin today and sell it tomorrow to be come rich, forget it, you came 10 years late for that. Still in its final stage bitcoin is a very useful asset to humanity. Its away to escape the fiat trap, not to mention the fractional reserve banking timing bomb, which can take the whole world economy (except Bitcoin) overnight. It only takes critical mass of people learning about fractional reserve banking, and their choice to withdraw their money, maybe to buy bitcoin. done slowly enough, the banks can adapt and shrink gradually, but if done in panic... a worldwide bankrun is possible. This is the ultimate feat which is why you always see them bailing out the banks but not the people.

The fact that a bankrun can occur is the telltale sign of a Ponzi like scheme. Go ahead and find by yourself what fractional reserve bank is. Why is this legal? Its related to the history of the modern bank. The bankster did fractional reserve practices when that was illegal two centuries ago, some did not lose the money gambling it or loaning it, got rich, and "lobbied" politicians into legalizing the practice.

Now that i know it, i wouldn't keep large amount of savings in banks. What if enough people learn about this? You never know, maybe the scheme will still go on another 100 years and nobody will notice, or maybe, just maybe the information will spread and panic withdraws will make the system collapse. You will not be able to take your money out if this happens, bankruns are nasty, its like an exchange that fails. To avoid a world trauma, its best to do it slowly. Don't worry, the way the system works, a single country cannot take down the world (there is a world bank), same as a single bank cannot take the whole country (there is a central bank). They made it for this reason, to protect their scheme. Those "meta" banks also work with fractional reserve principles, therefore can also bankrupt.

If you are skeptic do half/half. diversifying is never wrong. Its also half as good, but that's better than losing it all.