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7264670 No.7264670 [Reply] [Original]

Could the HODL mentality be bad for crypto in the long run, and create crashes much larger in scale than they otherwise would be?

Let me explain. If many people adopt the HODL strategy, even through substantial dips, then the amount of the coin supply which is actively traded represents only a small percentage of the actual supply. Therefore, it takes proportionately fewer coins to swing the price drastically.

For example, If 90% of the coins were being held and not traded, it would only take 1-2% of the supply being sold to cause a massive crash in price.

Thoughts?

>> No.7264745

bump

>> No.7264765

I don't follow your logic here. Selling causes the price to drop because it increases the supply available. It's supply and demand. If 99% HODL'd the price would skyrocket because there would be such limited supply

>> No.7264796

>>7264670

My thoughts are you are a brainlet

>> No.7264850

>>7264765
You forget that there are always party poopers who WILL sell. That's who OP is referring to.

>> No.7264862
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7264862

>>7264765
This is true. But as soon as the people holding decide to sell (mining whale, ICO bagholder, etc.), the amount of new coins in active circulation could increase by a huge factor in a short period of time. That tips the supply/demand equilibrium very quickly.

So yes, assuming the HODLers actually don't sell, supply/demand drive the price up. But if there's an avalanche effect for people selling coins which otherwise wouldn't have been traded, the result could be much larger

>> No.7264890

>>7264850
Sure, in an active market people will cash out and take profits. But OP seems to be saying that HODLing is driving the price down, which I disagree with entirely

>> No.7264996

>>7264862
ah, I see what you're saying. If there were no coins for sale then one day a Whale decides to sell, the market price could drop drastically, yes. Kind of why monopolies aren't allowed in the stock market, they'd have too much influence