With Bitcoin dropping well below $6,000 on concerns about how the latest Bitcoin fork will impact markets, amongst other things, I thought it was time to address the emotional state of HODLers. While many who bought Bitcoin before October 2017 can still be up on their holdings, there are many who didn’t get involved until late last year, which help fuel the rise to almost $19,000.
Various individuals have reached different stages on the Kubler-Ross model of grief, but let’s touch on each one briefly to help determine where you as a HODLer stand.
Denial. This is just temporary. Bitcoin has a long history of large losses followed by even higher prices. I’m in this for the long haul, so who cares. (This is the second most common stage for HODLers).
Anger. By far the most common stage for HODLers. Everyone is just stupid! Can’t they see how revolutionary this is? Why do they even let these ‘establishment’ idiots even comment on crypto! Can’t everyone tell these people have no clue and are just protecting their own self-interest! Just wait until Bitcoin hits $100,000, then these doubters will get what they deserve!
Bargaining. Just let the SEC approve ETFs! I swear I will sell some the next time we get to $20,000. I’ll be more careful next time and not so dogmatic in my approach. Just let the ETFs sweep in a new wave of users and I promise I’ll sell some into that rally.
Depression. Did I get suckered into something stupid? Why not just use credit cards? I don’t have enough money to worry about all this. Did I really think decentralized control was a good thing? Do I have any clue how this really works? What was I thinking? How stupid was I? How do I tell anyone I used student loans to buy this stuff? (No HODLer lasts in this stage for very long since it is contrarian to everything they believed).
Acceptance. It’s a great technology. It will change the world, heck, it is changing the world. It will just take longer than I expected. I won’t hold all my savings in Bitcoin going forward, and I might even sell some on the way up, but I’m not giving up yet (at least not completely).
This latest move should test the faith of many existing holders and create for some interesting discussions as we near the 1 year anniversary of the launch of Bitcoin Futures and that spike to $19,000.