Why should you HODL Bitcoin? These are the top 5 reasons investors are holding onto their Bitcoin rather than selling.
1. American Debt Keeps on Accumulating:
The United States has a serious debt problem. While countries around the world have tightened their belts with austerity measures, cutting services and raising taxes in order to balance their budgets, the U.S. government relentlessly runs deficits and constantly raises its own debt ceiling. Right now, the United States owes over $20 trillion to other countries. Eventually, countries like China are going to stop lending money to the U.S. at a cheap rate.
Once access to cheap debt gets cut off, the U.S. will start to look like the Weimar Republic, printing money to cover its extensive military obligations. That could send the country into hyperinflation.
2. Bitcoin Prices Increased Over 500 Million Percent:
Between 2010 and 2018, Bitcoin prices increased to over 500 million percent. When the first ever transaction in which Bitcoin was used to buy something else, Laszlo Hanyecz bought two pizzas worth about $30, valuing Bitcoin at around $0.0003. Once Bitcoin reached $17,500, that meant prices had gone up by over 500 million percent.
While another price surge like that may not be likely, even coming close would make Bitcoin owners rich beyond their wildest dreams.
3. Fixed Supply Currencies Are the Future:
The loose monetary policy that’s reined in the west since 2008 is going to catch up with catch up with it sooner or later. Governments have been printing money with wild abandon. Inflation will catch up with the artificial influx of paper money, and there will come a time when people will laugh when you try to pay them with fiat currency.
Bitcoin is a fixed supply currency. There’s a limited number of Bitcoins that will ever exist, many of which are not even available yet. Once every Bitcoin has been mined, there won’t be anymore. That gives Bitcoin more reliability than even fiat currency.
4. HODLers Became Multi-Millionaires:
Anyone smart enough to buy Bitcoin at $30 became multi-millionaires by the end of 2017. If they cashed out part of their Bitcoin holdings, they’d be instantly wealthy, all because they decided to HODL.
Want to know what does HODL mean and why do Bitcoin investors keep talking about it? It’s actually a type of hold, but it’s taken on a life of its own. Today, many say the HODL stands for “Hold on for Dear Life.”
5. Tax Incentives:
When you sell Bitcoin, you have to pay taxes on capital gains. Fortunately, the longer you hold onto an investment, the lower your taxes when you do cash it out. There is a significant tax advantage to holding onto Bitcoin for at least one year or even longer. When you cash out, you won’t owe a huge tax bill.
Smart investors are holding their cryptocurrency. The earning potential is still sky high. Don’t miss out on the next Bitcoin price jump.