Erik Weijers, a year ago
Hodl means to hold and not sell your Bitcoin. It's a semi-intentional mispronunciation of the English word hold, in a December 2013 post on the Bitcoin Talk forum. Over the years, it has become a rallying cry of anyone who believes in the long term of Bitcoin (or another crypto currency) while watching the price go down - or rise fast.
The attitude of steeled hodlers is to not let price movements get to you and to just stay where you are. Also because it is impossible to time the market and sell exactly at the top and buy at the bottom. No doubt there are traders who can do this, as acknowledged by GameKyuubi, the inventor of the term hodl. But he is not one of that select group. 'It's because I'm a bad trader and I KNOW I'M A BAD TRADER.' But: even when the price falls, you only lose money if you stop hodling: 'In a zero-sum game such as this, traders can only take your money if you sell.'
Already within an hour after the post, one of the reactions envisions a future for the new verb:
LOOOOL !!! I swear you just started a movement! ( the hodlers are here! ).
A few hours after the post, the first meme appears.
December 2013 is a period of considerable price movement. At the beginning of that month, Bitcoin peaks above $1100. On the day of the hodl post, Bitcoin briefly drops below $400. In the years that follow - with one sharp price movement after another - HODL becomes the acronym for Hold On for Dear Life. December 18 is declared official HODL Day: it is of course the day of the post on Bitcoin Talk.
All jokes and memes aside, the hodl philosophy has proven to be a simple but excellent investment strategy. For although Bitcoin has experienced extreme price swings, simply not selling would have made many an early investor rich.
Of course, past returns are no guarantee for the future. But if your investment horizon is several years, then it's probably not a bad idea to just hodl some of your crypto portfolio. Set and forget. Your own emotions are sometimes your worst enemy - and that may also explain the popularity of the post and hodl battle cry. Anyone who has been in the crypto markets for more than a few months has experienced looking at the prices with a sunken feeling. A moment in which some encouragement is much needed. HODL!
GameKyuubi, whose real name is Mike, typed the post while on whiskey and clearly reacting emotionally to the price drop. Coindesk tracked him down in 2019 and interviewed him.
Hodl is without a doubt the most widely used crypto jargon. But there are more jargons.
Feb 10, 2023
As the original cryptocurrency, Bitcoin has the longest price history of them all. What do more than thirteen years of data tell us about the future price of Bitcoin? And what other indicators help us to predict Bitcoin's price? Let's look at some models and other considerations when we want to create a Bitcoin price expectation for the coming years.
Jan 18, 2023
On the surface, Nostr is much like a stripped-down version of Twitter. But just like Bitcoin works in fundamentally different ways from traditional money, under the hood Nostr works very different from conventional social media. In Nostr, YOU own your account. Also, Nostr lends itself to integration with wallet software and Bitcoin's Lightning network. Let's dive in and experiment.
Jan 06, 2023
Since the birth of Bitcoin people have been worried about improving decryption technology one day becoming capable of breaking the encryption. A recent paper by Chinese researchers claiming a quantum computation breakthrough - which most consider a hoax - adds fuel to the fire. How likely a candidate is quantum computing to ever break Bitcoin's encryption?
Dec 02, 2022
Hash trees are vital to blockchain technology and Bitcoin because they allow validating data securely and efficiently. The name Merkle tree derives from its scientist inventor Ralph Merkle who patented his invention in 1979. Today, hash trees are very common in cryptography as well as in computer science.
Sign up to stay informed via our email updates