If you’re invested in Bitcoin (or any other crypto, really) today… then you are going to read all about panic selling, fomo buying, and/or people strengthening their hands for hodling. The price swings have already been spectacularly stomach-churning; right now you’re probably either giddy or vomiting – depending on how many of which Bitcoin implementation you’re hodling.
What’s going on? Sure, crypto is known to be wildly volatile. News can swing markets, fair enough. But, there’s not much news today. So, what gives?
You’re in a very illiquid market. The true believers (and the bag holders) often advocate hodling. Most of the world’s money is still too unsure to get in on the crypto game. The market for crypto is growing, but even the most recent “new money” just locked their crypto away after purchase.
The fact is, most “little guys” are locking away their crypto, or holding on to their fiat – but those are the very things that this market needs to make important decisions! Like: which version of Bitcoin is… really Bitcoin?
There are whales that take advantage of this fact, and they are apparently not afraid to use their resources to vote. Each have now proclaimed that their beloved Bitcoin should be king of the crypto world. They are using their votes to influence prices – and hoping that you’ll either blindly follow the leader, or just stay out of the fight altogether.
Because these whales have been long-term holders in most cases, they effectively get to double their voting power. If they don’t like Bitcoin Core, they get to sell it – lowering its price. They can immediately turn around and reinvest that into Bitcoin Cash, which they’ve already been hodling – and its price goes up more. They are using their assets to make very impactful votes.
If you’re a pre-fork hodler yourself, then you get a similar privilege. If you’re new to the game, then you’re not in the same position. Chances are, in either of those cases, that you’re not casting a vote at all. We can know that new money isn’t entering the crypto space today. We can’t know how many hodlers are swapping one Bitcoin version for the other.
When the vast majority of a community sits on the sidelines, they are effectively amplifying the influence of those who are actively casting votes. And those votes are already doubled! If you’re just hodling, then you’re voting to let the whales decide the fate of Bitcoin… possibly, the fate of crypto altogether.
If you’re just sitting on your hands hodling you’re not a genius – you’re a coward. The same applies if you’re waiting for a “safe time” to enter the crypto space. Please, educate yourself and resolve to participate in the marketplace – don’t leave so much power in the hands of so few.
If you’re not voting with your assets, then you’re squandering your once-in-a-generation chance to cast a vote for the future of society.
I’m passionate about blockchains. I’m excited about decentralization, autonomous organizations, cryptocurrencies, and uncensorable dApps.
I’m also overwhelmed – with questions about these cutting edge technologies. I want to understand the tech, the politics, and the implications of the blockchain revolution.
Most of all, I want to share what I discover – because broader understanding will lead to greater participation, more rapid adoption, and, subsequently, a better world.