Why the Buy & Hodl Game Works with Ethereum

There are quite a few reasons why someone may choose to buy and ‘Hodl’ Ethereum. Here is why.

Let me start by saying that I love the term ‘Hodl’. A Reddit group I follow daily introduced it to me and ever since I have been on the bandwagon. Why does it matter you may ask?

The Crypto world of currencies is very volatile at all times of the day. Investments that have significant volatility increase gains but also losses. It is one of the main reasons you have to invest with money you can lose.

I have seen my holding of Ethereum go up by a couple thousand and down a couple thousand in less than a week. But the key to it all is that I didn’t sell. Because I didn’t sell i’m now rewarded with higher prices for being patient.

I look at Ethereum as something that could change the world. Maybe i’m being a little over ambitious but I think the technology is way undervalued based on long term valuation. About 70% of people will not believe me or think it is crazy. These are the people that are always late to the game.

Long Term ‘Hodling’

If you look at every asset in the world, most of them go up over time. It may take one year or 10 years based on growth but the trend is typically up. I look at Ethereum in the same way and except I see an exponential curve of growth. Very few assets in the world actually have this type of curve which is what made it interesting to me.

buy and hodl ethereum

This is exactly the reason why ‘Hodl’ is the answer. There will be boom and bust periods but stay with it! Because in the end you could be looking at the beginning stage of something that revolutionizes technology.

Now that is enough of me getting on the hype train. There is challenges to Ethereum just like there has been challenges to many technologies at the front end of development. One of them includes sizing but this could easily be fixed when Raiden Network is finished and the speed of the network exceeds utilization. Another challenge is for miners as the difficulty grows on the network. However, the processing power in GPUs like AMD have gotten better each year. Just think 10 years from now.

In conclusion, my thesis could be completely wrong about a future that seems far out. But everyone is in the same boat trying to predict a future that hasn’t happened yet. I say just “Hodl” and wake up in 10 years only to say thank you.

 

 

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