Bitcoin Price Profitable Holding Time

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Last Week In Bitcoin is a series dealing with the events of the previous week that occurred in the Bitcoin industry, covering all important news and analysis.

summary

As more institutional investors get started and more countries signal their intention to pursue bitcoin as an alternative investment to the US dollar or even their own currencies, bitcoin should be in heaven. Instead, “jelly hands” keep selling while whales and sharks keep piling up. This week, I decided to look at the profitability of owning bitcoin over the past twelve years.

Highlights of the week

The table above is relatively straightforward. It compares the daily price of bitcoin since the Genesis block was mined on January 3, 2009 until today, taking into account an average price of $ 34,000 per bitcoin. Essentially, the price per bitcoin was below $ 34,000 for 4,393 days out of the 4,573 days since the first bitcoin was mined. This means that there were only 180 days, or 3.9% of Bitcoin’s total existence, when its price was higher. Only people who bought during one of these 180 days run at a loss.

I created this chart with one idea in mind: to show the importance of hodling and how bitcoin is a profitable investment, both short and long term. Those who sell at the first red candle are commonly referred to as “jelly hands”, selling at a loss, fearing that the price will drop further. However, as has often happened over the past 12 years, if you hold on long enough, your bags will be worth more than what you paid for – a lot, a lot more in most cases.

Staggering short-term gains introduced many people to the crypto market before research and understanding led most of us to understand how Bitcoin ensures both financial freedom and financial security for all. Just as greed fuels price growth, fear fuels the dump afterward. So your portfolio is down 5% or 10% or even 50%; What are you doing?

It’s simple: HODL. Yes, it is particularly difficult to hold, especially if you are one of the many who have purchased bitcoin above $ 60,000. But, as I mentioned before, I think bitcoin is overdue for a decent pump over the next few months. It will most likely surpass its latest all-time highs and I predict those who bought high will feel a bit of redemption for remaining determined to hold on.

As price picks up momentum, the 3.9% of the time buying bitcoin was unprofitable will become a smaller and smaller proportion until new highs are reached. achieved. Or, you can sell and hope for a lower buy-in and end up like those who sold their bitcoin for $ 100 expecting a dump, only to see the opposite happen. It is about “holding on for life” and not “selling panic and regret for the next decade”.

Bullish news

Will I someday cover some recent bullish news that somehow doesn’t make its way back to El Salvador? Maybe, but it won’t be this week. Last week, politicians in Paraguay signaled their intention to submit a Bitcoin bill to parliament in the coming week. What does it mean? Well, it’s possible that another Central American country will end up adopting bitcoin as legal tender, or at least as an official investment vehicle.

Following the previous “Last Week in Bitcoin” article which focused primarily on bitcoin mining, the past week saw more positive moves in the mining community. Gryphon expands mining with 7,200 new mining rigs, and one of the oldest hydroelectric power stations in the United States is used to mine bitcoin. Add to that more and more miners who are slowly coming back online after the Chinese bitcoin mining exodus and mining difficulties decline, then it’s easy to stay bullish on mining, the cornerstone of the market.

Finally, SelfWealth, an Australian brokerage house, will offer the opportunity to invest in bitcoin to its more than 95,000 investors, paving the way for greater adoption and likely acting as a catalyst for other companies to follow in their footsteps. . Bitcoin is spreading like wildfire. Eventually, all the bullish news from the past eight weeks or so will be incorporated and the sea of ​​green candles will be pure bliss.

Bearish news

In a cruel irony, or is it “Iran-y”, Iran has announced plans to pass laws that would promote bitcoin mining in the country, however, they currently maintain a ban on trade. and investing in bitcoins mined outside of Iran. What the government thinks remains unclear as it clearly sees the value of bitcoin mining but still sees it as a threat to the financial control of the masses.

So dictatorships are always bad. Nothing new there and so far there appears to be very little bearish news.

Verdict

It’s been a mantra since the term was first coined in 2013: HODL. Holding out against all odds is good investment advice, if we’re talking bitcoin, of course. If it’s Tesla stocks, maybe you should reconsider your decision before it’s too late. But bitcoin is decently priced to stack more of it. Sometimes looking back at past performance is a sure-fire way to predict what’s to come and I think this time is no different. Bitcoin has been a solid investment vehicle for many people for many years and that won’t change any time soon.

If you’ve bought high, HODL and find out where the term “diamond hands” came from. If you bought low and are still seeing gains, there is no reason to stop HODLer now …

This is an article invited by Dion Guillaume. The opinions expressed are entirely theirs and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

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