HODL and transactions reveal the logic of wealth accumulation in Bitcoin

Those who "speculate" are also traders. Those who "hoard" are HODL. HODL is a misspelling of HOLD, so it became a cultural meme. Hold it still, hold it firmly, that's HODL.

The market is often filled with myths about getting rich. Stories of people getting rich from trading are particularly popular among people.

But when it comes to BTC, if you think deeply about the logic, you will know that traders cannot defeat hoarders after all.

What we are examining are traders and hoarders as a whole, not a specific trader. A specific trader can, of course, quickly accumulate a large amount of wealth through the redistribution caused by cutting and being cut within the trader.

However, somewhat similar to the famous saying of US President Lincoln, you can defeat everyone at a certain time, and you can defeat one person forever, but You can't beat everyone all the time.

There are often trading masters who become famous in a moment, but there are many who quickly fall into the dust, but few are heard of those who have been around for a long time.

Traders generally only capture value in the so-called market.

Hoarders obtain value through various off-site behaviors, and then transfer it to the market, which is converted into an increase in BTC holdings.

The only way for hoarders to obtain off-site value is to create value for others, that is, to meet the needs of others. For example, if the hoarder's main business is selling steamed buns, he will earn a certain amount of income by providing steamed buns to others.

Traders do not rely on off-market income to increase their hoarding. Therefore, outside the market, traders are the demand side, not the service side.

The hoarder sells the steamed buns to the trader, and the trader pays the price to the hoarder. Hoarders convert the income earned from buying steamed buns into BTC, thereby increasing their BTC positions.

There are many off-site economic circulation paths like steamed buns. The only direction of all paths is to eventually lead to the flow of BTC from traders to hoarders.

As long as traders need to eat, dress, and travel for a day, they cannot prevent BTC from flowing from their hands to the hands of hoarders.

In the fiat currency system, the trick of traders (speculators) is to bind them to the money printing machine, and they turn into entrepreneurs who are keen on capital operations. , venture capital investors who spread rumors in the primary market, and entrepreneurs who build relationships and speculate on concepts through backdoors to inflate valuations have the only way to go back to their roots and let the money printing machine continue to print money for themselves to spend. Even if savers (hoarders) steam buns until they die, they will never be able to earn all the unlimited supply of banknotes from the money printing machine.

In a system that comes with this unfair buff, traders (speculators) always beat hoarders (savers). Getting something for nothing is better than hard work.

Looking at things like BTC that are hoardable and cannot be controlled by traders, hoarders (savers) can always defeat traders (speculators) .

If you don’t care about the producer, you will always give up your BTC and give it to the producer in exchange for the product (for example, steamed buns) in the hands of the latter.

The BTC in the hands of traders will inevitably flow to hoarders.

Unless the hoarder is tricked into doing transactions and loses his BTC on the market.

Otherwise, in the long run, hoarders will surely defeat traders.

In a nutshell, it is better to speculate than to hoard.