Hodling: Why Most Bitcoin Buyers Don’t Sell

If you’re interested in cryptocurrency, you’ve likely heard the term ‘hodling’ at some point. Current Bitcoin news has been grim, as prices spike only to fall, and as a result, you may have been told to hodl. But what does this term mean? And how does it apply to Bitcoin?

Read on as we break down hodling in easy terms and discuss its origin. We will also discuss why the term is still accurate today, and why most Bitcoin holders refuse to sell.

What is Hodling?

Before we dive in, those new to the cryptocurrency world may not know what hodling means. Hodling is a cryptocurrency-specific term that was bred out of a typo.  

Apparently, a BitcoinTalk user once tried to explain to another BitcoinTalk user that buying and holding Bitcoin was the way to go, but he or she typed so fast that they reversed the l and d in holding to create a new word, hodling, which they were quickly mocked for in the thread.

In the time since, this word has grown and morphed within the cryptocurrency world to represent the term “hold on for dear life” which is an investment tactic where you buy Bitcoin and simply hold on to it—hoping it will grow in value over time.

Why is Hodling Popular?

As Bitcoin has become more popular, the idea of hodling has also become more popular. This is because, while Bitcoin routinely fluctuates in price, it is still up at an all-time high. In fact, any time Bitcoin crashes, it always ends up climbing to a new all-time high afterward.

As such, the community strongly urges people to buy Bitcoin and just to hold on to it, weathering out any temporary price fluctuations—and for a good reason! Overall, Bitcoin isn’t a good or predictable short-term investment, but so far, it has been an amazing long-term one, something which hodling encourages.

How Popular is Hodling?

It’s crazy, but Bitcoin analysts have discovered that 45% of the supply of Bitcoin has not moved in the past six months. This means that almost half of the market volume is being hodled.

While this might not seem like a big deal, it is crazy when you compare Bitcoin to other stocks, which tend to change hands more frequently and is a strong indication that the majority of those investing in Bitcoin are in it for the long run.

That being said, Bitcoin has been in the news several times over the past few months as both the US Government and German Government have had to sell off large, seized stashes. This has created even more volatility than normal, so it is extremely impressive that so many individuals have decided not to sell their Bitcoin.

Will Bitcoin Increase in Value?

The idea behind hodling is the belief that no matter what happens in the interim, over a long period of time, Bitcoin will increase in value, and analysts tend to agree with this idea.

At the beginning of 2024, analysts were bullish on the coin, saying they expected it to break $200k per token this year. While this certainly hasn’t happened, analysts are still bullish, adjusting their predictions to the belief that Bitcoin will pass $164,000 per coin by the end of the year.

While this may seem far-fetched, many cryptocurrency professionals believe that the recent crypto bear market is just part of a massive market correction, and we are inclined to agree with them. Cryptocurrency is a newer product, and as such, many companies that bought and adopted crypto (AKA Tesla) have discovered that the crypto world isn’t for them and later sold.

Additionally, as we mentioned above, there are several governments selling large numbers of Bitcoin coins back into circulation, something which has increased supply above the current demand. This has been tough for users, and many on the fence see it as a bad sign for crypto, but personally, we are glad that there are more coins in circulation as it gives people a chance to buy in before it really reaches its peak.

Although we aren’t as bullish as the analysts, we believe this current dip is just a minor setback for the cryptocurrency and that it will rise in price again—it's just a matter of when. For now, we will keep on hodling.

Related: 6 Key Factors That Affect Crypto Prices

Does Bitcoin Experience Recessions?

For those who aren’t as positive about Bitcoin, it’s important to reference the fact that the global economy is currently in a recession (even though the governments are denying it). While it isn’t a bad recession yet, costs and inflation remain high while incomes have become stagnant—and many companies have begun laying off employees. Thus, it is worth mentioning that Bitcoin is affected by recessions.

Bitcoin isn’t affected by recessions in the same way as the global economy though—but people do tend to buy less when they have less extra money to spend. Additionally, some people may have to sell their Bitcoin to make ends meet, especially if they have lost their jobs.

As such, this has contributed to the fall in Bitcoin price, though we fully expect Bitcoin to bounce back before the economy does, as it isn’t controlled by the same economic factors as the global economy—it’s just a matter of when.

All in all, we are pro-bitcoin here at MintDice.com, and we are also pro hodling. While we aren’t experts and have no idea when or how Bitcoin will bounce back, we do believe that it will. So, whether you own a small amount or a large amount, it might be time to consider hodling and wait to see if a better day for cryptocurrency is on the horizon. After all, you won’t be alone, 45% of Bitcoin holders are doing the same thing!

You May Also Enjoy: Bitcoin Prices Are Expected to Rise: Is It True?