{"id":412436,"date":"2020-01-27T19:00:34","date_gmt":"2020-01-27T19:00:34","guid":{"rendered":"https:\/\/wncen.com\/?p=412436"},"modified":"2020-01-27T18:35:11","modified_gmt":"2020-01-27T18:35:11","slug":"hodl-strong-bitcoin-supply-dormant","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/hodl-strong-bitcoin-supply-dormant\/","title":{"rendered":"HODL Strong: Over Half of The Bitcoin Supply Hasn\u2019t Moved in Over a Year"},"content":{"rendered":"

The term HODL is an acronym derived from the phrase \u201chold on for dear life,\u201d which became a widely popular recommendation for investors to remain steadfast in when Bitcoin<\/a>\u2019s notorious volatility peaks.<\/p>\n

It appears that crypto investors are taking note of the tip and holding strong, as more than half of the entire Bitcoin supply has been dormant in over a year.<\/p>\n

HODL Effect: More Than Half of the Bitcoin Supply Remains Dormant For a Year or More<\/h2>\n
Bitcoin<\/a> was designed to offer many unique attributes that are a benefit over the fiat currencies that make the world go round today.<\/p>\n
While central reserves such as the Fed can simply print more and more fiat currencies, Bitcoin, however, is digitally hard-capped so that the supply is limited to only 21 million BTC.<\/p>\n
Related Reading | Bitcoin Stock-To-Flow Model Updated To Account for Satoshi\u2019s 1 Million BTC\u00a0<\/a><\/strong><\/em><\/p>\n
The scare supply is just one of the many attributes that give Bitcoin<\/a> its value as a disruptive financial asset.<\/p>\n
The idea is that due to the cryptocurrency’s limited supply, it becomes easy for the scales to tip in favor of demand, causing the asset\u2019s value to rise due to simple supply and demand market dynamics.<\/p>\n
However, there is an overlooked factor that may be causing Bitcoin\u2019s supply to function as if it was even more limited: the HOLD effect.<\/p>\n
Those who have spent any period of time holding Bitcoin should be well accustomed to the wild volatility the asset is known for, causing massive price fluctuations driven by speculation.<\/p>\n
Those who decide to trade Bitcoin\u2019s peaks and troughs oftentimes get chopped up in the volatility, resulting in massive losses of capital.<\/p>\n
But rather than trying to sell tops and buy dips, along the way, crypto investors wised up and realized that simply holding Bitcoin and other crypto-assets oftentimes resulting in a better ROI.<\/p>\n
It has resulted in a phrase coined that reminds crypto investors to hold on tight, dubbed HODL, or \u201chold on for dear life.\u201d<\/p>\n
Crypto investors are, according to new data, taking this tip to heart, and are holding their Bitcoin<\/a> tight.<\/p>\n
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Wow, 12.6 million Bitcoin have not moved in over 1 year!<\/p>\n
This is MIND-BLOWING given that these HODLers saw $BTC<\/a> go from $3.5k to $13.8k and back down again, unshaken!<\/p>\n
Who are these CRAZY #Bitcoin<\/a> HODLers? Well, I'm one of them, are you? pic.twitter.com\/YRG50LEZzQ<\/a><\/p>\n
— The Moon (@TheMoonCarl) January 27, 2020<\/a><\/p><\/blockquote>\n