HODL (Hold On for Dear Life) has been a mainstay of the crypto sector ever since its regular exchange began. The premise was simple; Bitcoin is a deflationary asset (with limited hard cap) and therefore, with time, with market penetration and increasing popularity, it’s worth is likely to get higher and higher with time.
The First HODLers
The first group of HODLers surfaced when the cryptocurrency halved back in 2012 and its price skyrocketed, increasing more than 100 times in a small amount of time. But, subsequent price dump meant that many people back then thought that the digital currency was just a fluke and it would go away. You have to look back because even now, the market makes big price dives and newbies panic and sell everything off. The same thing happened back then, but at a much larger scale. The cryptocurrency was new and was suddenly declining big time. Back then, the first members of the #HODLGANG appeared.
Where did HODL even Come From?
The first time they appeared were on Bitcointalk.org forums with several users misspelling hold with hodl. The misspelled word was amusing and it caught on and became a staple of the crypto world’s weird shorthand, the first one in fact. Long before the newer terms like Rekt, Moon, FOMO (Fear of Missing Out), FUD (Fear, Uncertainty and Doubt) and others made their way into the mainstream.
So, the word HODL caught on and so did the trend. The term resurfaces again as the market enters a new rough patch, one of which is expected at some time in the first half of 2022.
Buy the way, here is a meme collection of HODL memes
So, the big question is: Is it Worth Buying Bitcoin in 2022 and HODL?
Since it is a complicated question regarding a complicated industry and things can get quite cumbersome, we will try to answer it as simply as possible. But, first we must answer to critics who believe the Bitcoin ship has sailed and it is not feasible to HODL it now that it has surpassed a certain level above $1 trillion. How much more price increase can it have?
Here is a brief answer:
The cryptocurrency is currently trading at around $1 trillion in total market capitalization. It is worth more than than most of the top commercial enterprises in the world and is likely to reach even higher in the 2021 bull run alone. One Bitcoin alone is worth upwards of $50k for a long time in 2021.
So, surely it can’t go much higher than this, right?
The truth is that the world changes fast and that is why HODLing Bitcoin for the long-term always emerges as the advantageous solution that never stops giving. Due to the Covid-19 pandemic, inflation has surged to 6% in the developed world and below 10% for the developing areas. This is largely because of the plentiful stimulus that is still flowing around the markets. So, having a deflationary asset like Bitcoin is going to be really useful in your portfolio. There is a joke that goes around the crypto community; the current price of Bitcoin is a scorecard of USD and its progressive inflationary mechanics. So, with our full confidence in the fiat system, I have to say, buying and then HODLing Bitcoin is not going to be harmful for you in dollar terms at least.
Should You Buy and HODL in 2022?
The answer is yes, but not at any price even though stats suggest that buying and HODLing crypto for the long-term is always profitable. The trick to HODLing is that you buy when the markets are down and then buy more when they go even further down. You have to buy low for a really effective HODL process and that is the main key. Conveniently, first you need to determine the right price and that means where Bitcoin made a stop during the last bull run. The current 2021 bull run is ongoing and experts are hoping for a price close ideally of anywhere between $80k-$100k and possibly higher. Then at some point in 2022, the price is expected to scale back considerably.
That is where the next opportunity is likely to present itself. Depending on where the bull run peak is achieved, we can take a retracement level of one third (1/3) and start buying from there. For example, if Bitcoin posts a maximum high of $120,000 during this bull run, you can start buying at a relatively good price of $40k and lower. It is ideal to not purchase all of it at once and wait for dips to happen and then go into action when the time is right.
When will be the Next Bull Run?
For short-term HODLers who don’t wish to hold on to the crypto for longer than necessary, the next big opportunity is likely to present itself in late 2024 and early 2025. This is because previously, the digital currency has posted a bull run after each new halving. The next one is on May 04, 2024 and that is why late 2024 and 2025 are reasonable predictions. According to current estimates, the digital currency is likely to reach anywhere between $150k-$250k in the next bull run. So, if you can buy anywhere between $30k-$50k, that is a solid multi-times price increase. But, hodl your horses (pun intended). You have to see where the current bull run is going to end and then you can just do simple maths and start buying when the right price presents itself.