& # 39; hodling & # 39; and its impact on the adoption and liquidity of cryptocurrency

"Hodling" has not only become an important strategy for many bitcoins, but it is also one of the main reasons why Bitcoin remains the most precious cryptocurrency on the market.


Encrypted loans can increase the price of bitcoins

For every non-technical Bitcoin investor who has bought shares more than a week ago, "HODLing" has rarely appeared such an important part of its strategy. Following the crisis in the cryptocurrency markets in 2018, most of the investors who bought into Bitcoin 0 0 after November last year will suffer losses of up to 70% of their initial purchase -in.

While Bitcoin loses value against the US dollar is no longer the cause of panic it once was, the reduction from the historical highs of around $ 20,000 continues to shape the market, both in terms of liquidity and adoption. [19659008] Immigrants: is it possible to get a loan if you are new? "width =" 450 "height =" 281 "/>

In a protracted bear market, fewer coins change as the holders keep their assets for as long as possible.

L & # 39 current stage of Bitcoin's life has become the subject of important research volumes both inside and outside the cryptocurrency industry.

As Bitcoinist reported to the 39, beginning of this month, for example, a significant part of Bitcoin's total offering has circulated in the last year, compared to altcoin like Bitcoin Cash, the vast majority of which is held in static portfolios and never "Used".

At the same time, current data suggest that about half of the available bitcoin is stored long-term, while the other half is actively circulating, such as Inlock's loan services, which block cryptocurrency as a guarantee in exchange for cash, can essentially reduce the circulating bitcoin offer by exerting upward pressure on its price.

While various commentators are watching a recovery in prices towards the end of this year, any significant change will affect the appetites of investors in "HODL" and will re-design the market again.

Loan services offer flexibility [19659003] The HODLing cycle in a bear market and trading in a bull market are now also well documented. The data compiled by the Bitcoin Unchained Capital loan platform shows 2018 as the fourth episode of a series of cycles of price spikes followed by protracted corrections and repeated (higher) peaks.

  The cycle of HODLing in a bear market and trading in a bull the market is now also well documented.

Because of the increase in adoption and fundamental stability in Bitcoin, however – something that was missing even a year ago – it has become easier for consumer-oriented businesses to influence investor habits offering alternative options to the simple HODL-or- trade ultimatum.

"HODLER are the true heroes of cryptospace," said Inlock CMO, Peter Gergo. "They keep their digital assets strong even during the bearish sentiment that slows downward movement and controls the supply – which ultimately translates into changing tides."

Now imagine what will happen when Inlock will provide access to the purchasing power of these resources are still able to HODL. With the opening of a new perspective, it will be interesting to see the long-term effects. "

Developing in tandem with futures and other products for institutional investors, these consumer products also offer the opportunity to profit from Bitcoin, regardless of whether prices are rising or falling.

InLock represents one of the first engines of a nascent industry – fiat currency loan using cryptocurrency as collateral.

Successor of well-known P2P loan programs like Bitbond and BTCJam, InLock's borrowing style aims not to amortize – technical investors against wild price fluctuations. Even if bitcoins significantly charge within a short period and the crypt-guarantee of a debtor in liquidation, the legal currency would still be available, allowing a new buy-in at current rates.

How long [] do you think the bear market will last before the HODLer become SODLer? Share your opinions below!


Images p courtesy of Shutterstock

Source link