Hodling is Bad, Saving and (Real) Investing is Good, a Thre…
Hodling is Bad, Saving and (Real) Investing is Good, a Thread:
On first glance, "hodling" appears to be like saving. They certainly look similar. In both cases, one "holds" (rather than spends or uses,) an asset.
This, however, is an oversimplification.
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Functionally, "hodling" asused today is different than saving, or even real investing (though it is similar to what many mistakenly call investing today.)
To illustrate the differences, let's consider another example of holding an asset: Waste management.
In the waste management industry, waste is widely collected and brought together to be held in landfills.
These landfills are extremely dense sources of refined materials, and are likely to be mined in the future when recycling becomes truly profitable.
Is a landfill a form of savings?
No.
Why not?
Because it is not an example of an asset being set aside for the purpose of future use, despite a possibility of there being future use of the assets being held.
This is a near perfect analogy to the hodler mindset. Hodl, don't spend, don't sell out. Always stack sats. Accumulate only.
Sure, eventually it might be worth something, but right now, buy the dip, and be the hodler of last resort.
The fact is, savings - that is, setting aside earned assets/resources for the specific purpose of using those assets for your own future use - has nothing to do with the extra baggage that "hodl" carries with it.
Saving has nothing to do with a (fallacious) idea that not selling keeps the price of an asset you like to stay up.
Saving has nothing to do with number go up, or altruistic sensibilities around a larger economic network.
Savings are good. They are rational, desirable delays of spending by retaining earned resources for future use.
Investing is even better, if done well. Investing is an act of using resources to increase production. Buying either stocks of currencies (Bitcoin included,) is not a form of investment.
True investing requires increasing production through the application of work that increases the efficiency and/or volume of the network of capital goods at producing value in the market.
"Investing" in a person's idea or company is not truly investing, but lending to someone who is actually increasing (or attempting to increase,) the production of value.
Hodling is an ignorant form of speculation, which is a form of educated gambling (when done right,) ergo, hodling is gambling.
One does not call a placed bet a form of savings. When combined with "hodling's" other baggage, it's merely stupidity.
Hodling is bad. Do not waste your time, energy, or other resources on hodling.
Saving and investing are both good when done purposefully. You ought to save, and to invest.
And if you speculate on the future value of a coin, just make sure you're managing your risk well, and don't give in to claims about imagined responsibilities you have as a holder of a given asset.
Hedge the world
In order to spend money on things u want u have to save to an extent , 🤪
Yes. Saving is a very good thing. Producing more than you consume has huge benefits. Later consuming out of your real savings is well earned derived value.