HODL is a commonly used slang phrase in the Bitcoin and other cryptocurrency circles. Some individuals mistakenly believe that HODL is an abbreviation for “Hold on for Dear Life.” While the term is correct, it represents a little of revisionist history.
It turns out that HODL is a drunken misspelling of the word “hold.”
Origin
The word “HODL” first appeared in 2013 in a post to the Bitcointalk forum by an excited member named GameKyuubi. Bitcoin’s price was turbulent throughout 2013, soaring to over $1,100 at the start of December 2013, up from just over $100 in April of the same year.
In his post, he wrote, “I AM HODLING,” implying that from that moment on, he would merely retain his bitcoins rather than sell it, regardless of market conditions. Within hours, the error had made its way into every Bitcoin community channel in the form of jokes and GIFs, launching HODLing into crypto-jargon history.
Strategy and Philosophy
HODL has become a crypto enthusiast’s catchphrase, suggesting a long-term strategy to cryptocurrency investing.
This method is consistent with GameKyuubi’s reasoning in the original article, which said that rookie traders are likely to fail in their attempts to play the market and should instead simply hold their currency.
For bitcoin maximalists, HODL is more than just a method for dealing with FOMO (Fear of Missing Out), FUD (Fear, Uncertainty, and Doubt), and other profit-depleting emotions.
Long-term cryptocurrency investors remain involved because they think that cryptocurrencies will eventually replace government-issued fiat currencies as the foundation of all economic organizations.
If this happens, the exchange rates between cryptocurrencies and fiat money would become meaningless to crypto holders.
Risks
Despite the recent high rate of return and the motivations to buy, smart investors should be aware of the hazards associated with cryptocurrency holdings. Cryptocurrency prices are quite volatile.
Investors may have to deal with severe ups and downs in asset values, which implies they must have far higher risk tolerances than investors in traditional financial products. They must have enough capital to avoid forced sales or to cover unanticipated liquidity demands.
With a relatively limited history in comparison to other forms of assets and fiat currencies, cryptocurrencies face an uncertain future. The cryptocurrency policy is still in its early stages. Cryptocurrencies can be used for fraudulent activities such as illicit transactions and money laundering if they are not monitored by a central body.
Different governments and political groups have expressed varying views on the usage of cryptocurrencies. It has the potential to greatly impede their function in enabling international transactions, hence lowering the value of cryptocurrencies. Unfavorable policymaking and public perception may have a long-term negative impact on asset value.
Token
$HODL is a cryptocurrency that was called after the popularity of the word “HODL” in the crypto community. The Binance Smart Chain is used by the HODL token, and HODL token owners can receive Binance Coin incentives.
