HODL is among those important terminologies which find its best use in the crypto world. Now, what is HODL in crypto? Why it is being used in the cryptocurrency? Well, this term is misspelt word of the hold which shares similar meaning means to hold. But since it is a crypto term, here the meaning is holding the cryptocurrency. It indicates users to not spent their BTC. The world HODL unexpectedly became a popular term even though it was wrongly spelt through a drunken post by a user on the Bitcoin forum in the year 2013. During this year, when Bitcoin price had fallen, the person who was in the drunken state was advising the users of Bitcoin to not sell it. But users are being cautioned to avoid HODL. So is HODL not safe for Bitcoin’s growth? Let’s find out.
Why HODL Not Safe For Bitcoin’s Growth?
According to some sources, HODL is useless as it restricts the potential of Bitcoin’s growth. In place of it, a strategy of replacing and sending should be referred. This would help in fostering the growth and adoption of the network and will also be a better way of creating an economy. If you want to make the best use of Bitcoin and want to hold it for future benefits, then it is advisable to follow this strategy. This strategy helps in the growth of Bitcoin and for its adoption by motivating individuals and many businesses. The main objective is to raise the economy to that level where there is no need for cryptocurrency changing to the central bank and again changing back to cryptocurrency. The motive is to make Bitcoin a medium for paying rent, food, online shopping or even getting your wages. It would also help in no need of central bank money. Once you start receiving your money in Bitcoin, then it is understood that you are riding on a new financial system. So yes, HODL not safe for Bitcoin’s growth.
Spend and replace strategy is the best-chosen way to the creation of the Bitcoin ecosystem and economy. Another method that best contradicts HODL is recycling. Instead of HODLing Bitcoin, it is better to make the best use of it as it would help in creating utility of the crypto coin. And when the utility is created more other people are dragged towards to use it. Spending Bitcoin leads to the creation of value and the increase in your portfolio price. The best way out to start recycling is to buy Bitcoin with other currencies (fiat). If in case it becomes impossible to buy Bitcoin online, then find a better alternative in a local seller who might help you in selling some of the coins. So now you know why HODL is truly not safe for Bitcoin growth.
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