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There is a certain craze in the community of cryptocurrency enthusiasts. The idea of “HODL”, a term that defines buying assets and waiting until they appreciate, is something that many consider the only way to deal with these volatile assets. It is hard to determine whether any investment strategy is right or wrong before it unravels. In hindsight, we all can say that something worked or not.
The story of a guy who had purchased two large Papa John pizzas for 10 thousand BTC turned into a memorial day celebrating the first ever transaction of cryptocurrencies for physical goods that occurred on May 22, 2010. Today, many think that it was a mistake and even call the guy foolish, trying to humiliate his inability to see “the big picture”. However, no one could predict the explosive growth of Bitcoin.
There could be a different story where crypto never took off and some guy at least got two pizzas out of it. This story is the primary anecdotal example that hardcore enthusiasts use to defend their position on the issue: buy as much as possible, hold for as long as possible.
For many in the community, any number of coins they hold is not enough. Those who have 1 BTC want to have 2 BTC, those who have 2 want 5, and so on. Many just keep on buying against all odds and regardless of market circumstances. The vast majority of individual users use DCA buying to reduce the average cost and put all their disposable income into the dream of getting a “Lambo”. Is it a good strategy in the long run?
Before the current bearish trend started, many experts predicted that BTC will reach $100 thousand by the end of 2022. Others were less optimistic but also forecasted strong bullish trends that would go against the overall economic recession. Well, their prognosis was very far off. Thousands of people who invested more than they could afford should have cashed out in April, but, again, hindsight.
The community must be reminded that buying crypto is a way to earn money. It is not a cult.
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