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Today on bitcoin.
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HODL is a term commonly used by cryptocurrency investors that refuse to sell their cryptocurrency regardless of the price increasing or decreasing. It is more frequently used during a bear market when people refuse to sell their coins despite the price drop.
HODL was later retrofitted to be an acronym (backronym) for “Hold On for Dear Life” and refers to not selling, even during strong market volatility and poor market performance.
Origin of HODL:
HODL was originally a spelling mistake by a user named ‘GameKyuubi’ on BitcoinTalk. In the original BitcoinTalk thread titled “I AM HODLING,” GameKyuubi wrote:
I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e. GF's out at a le***an bar, BTC crashing WHY AM I HOLDING? I'LL TELL YOU WHY. It's because I'm a bad trader and I KNOW I'M A BAD TRADER.
HODL has since become a strategy used by people who admit they do not have the skills to do short-term trades - such as scalping, day trading, or swing trading. The term HODL has also inspired the creation of a similar term often, BUIDL, which is commonly used by the cryptocurrency community to refer to the many kinds of applications that are being built within the blockchain industry.
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Angel investor.
Also called a seed or private investor, angel investors actively seek out opportunities to provide funding for entrepreneurs or start-up companies. They are often individuals with high net worth who are seeking new methods of expanding their wealth while simultaneously helping to launch an up and coming venture.
By investing, angel investors are not simply loaning funds to a project or company. Instead, they often require some percentage of ownership in the venture based on their initial investment. In some cases, the investment may occur continually, as the enterprise develops. But, it may also take place as a one-time contribution that helps the venture get started.
Angel investing tends to be beneficial for both the entrepreneur and the early investor. For example, the investor may find an opportunity to capitalize on earning interest at a rate they will not find in the standard financial market. For the entrepreneur, they are receiving funding at a level they may not otherwise have access to by applying to the typical loan entities, especially as a start-up.
Due to the risks involved, some angel investors also provide mentoring and business advice. This allows them to stimulate the venture’s success, so they are more likely to profit or at least recover their investment. Such support may come in different forms, from the planning to the development stage. It may also include help with networking, marketing, and advertising.
Angel investors play a significant role in economic growth. Outside of their potential personal gains by investing in a start-up, their funding helps to launch innovative ventures. Many of which would otherwise never exist, given the limited access to traditional funding sources. These ventures, in turn, help to create jobs and contribute new products and services to the economy.
Within the blockchain industry, angel investors are often participating in private sales that precede the public or crowd sales - also known as Initial Coin Offerings or ICO events.
Terms we use daily in the crypto space.
In the crypto space, the word bag refers to the coins and tokens one is holding as part of their portfolio. Typically, the term is used to describe a significant amount of a particular cryptocurrency. There is no defined minimum, but when the value is relatively high, one could say they are holding “heavy bags” of a certain coin or token.
Investors that hold bags for long periods are often called “bagholders.” Although the term may apply to different situations, it is usually related to investors that insist on holding their bags despite the poor market performance. In other words, bagholders are HODLers that stick to their assets even if their bags experience a significant decline in value (during strong bear markets).
There are various theories that try to explain the reasons why an investor become a bagholder. On the one hand, some investors simply don’t follow what is going on in the market. Either because they have a strong belief that their bags will be valuable in the future, or because they just lack the time or interest to track the performance of their coins.
There is also a phenomenon called the disposition effect, which is likely related to the bagholders mindset. It describes the tendency of investors to stubbornly hold their bad performing bags (hoping for a recovery), while quickly selling bags that increase in value. The disposition effect relates to the fact that humans, in general, dislike losing more than they enjoy winning - even if the final result is the same.
Often times people wonder what Bitcoin means, well, here you go.
In short, Bitcoin is a digital form of money that runs on a distributed network of computers (nodes). In a broader sense, though, many people often use the word Bitcoin to refer to a few different things: a digital currency, a decentralized public ledger, a protocol, or simply the big ecosystem that encompasses all of these. However, there are some fundamental differences between these functionalities.
First, Bitcoin is the name of a peer-to-peer (P2P) digital currency, which is sometimes referred to as bitcoin (with lower “b”) or simply BTC. Bitcoin is a cryptocurrency, which means it is a digital currency that is protected by cryptographic techniques. It was the first cryptocurrency that came into existence, and the first Bitcoin block - known as the genesis block (or block 0) - was mined on the 3rd of January 2009.
Second, the Bitcoin decentralized public ledger is what we call blockchain. Despite being closely related, Bitcoin and blockchain are different concepts. The blockchain technology is what maintains the whole structure that allows Bitcoin transactions to be broadcasted and recorded in a trustless and secure way. Note that, in this context, trustless means that the blockchain system does not rely on any kind of trust to function as it is backed by computer code and mathematical algorithms. Thus, the Bitcoin blockchain works as a decentralized digital ledger that publicly lists all confirmed BTC transactions.
Lastly, the term Bitcoin was also used to refer to the protocol that is being continually developed as an open source software. In 2014, however, the original Bitcoin client software was officially rebranded to Bitcoin Core to avoid further misunderstanding. As an open source software, Bitcoin Core counts with numerous contributors worldwide.
Bitcoin was conceptualized by a person (or group) under the pseudonym Satoshi Nakamoto. The idea was to create a unique digital payment system that would permit borderless financial transactions to occur without the need for mediators like banks or governments. The distributed architecture provided by blockchain technology, along with the cryptographic techniques, makes Bitcoin very resistant to attacks and fraud.
"Bitcoin will crash soon, Bitcoin will go down to 1$, Bitcoin is a scam" is what friends, colleagues and associates had been telling me for years.
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