Bitcoin “Hodling” and Gresham’s Law

MISES INSTITUTE

BY Connor Mortell

In 2013, a bitcoiner posted “I AM HODLING” on a bitcoin forum, intending to write that he was holding during a large price drop. He was explaining that most people are not successful traders and as a result they will inevitably just lose out in the process of trying to time the bear market, so instead he encouraged that bitcoiners should hold and trust bitcoin.

Citation: https://www.r2library.com/Resource/Title/0826102549

Since that day, this typo, “hodl,” has worked its way into the everyday vernacular of bitcoiners. It now represents the stance that not only should one not attempt to trade bitcoin through bull and bear runs, but also should not sell bitcoin under any circumstances because whatever asset it is one may purchase with it will one day be outperformed by bitcoin. For some purposes, this may be helpful, but for the adoption of a private money, this is exceedingly dangerous.

REF: https://medicalexecutivepost.com/2018/11/09/what-is-greshams-law-of-money-economics/

See the source image

READ HERE: https://mises.org/power-market/bitcoin-hodling-and-greshams-law

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