Could Early Bitcoin Investors Have Held Through Volatility? Insights from Crypto Trader Techdev

• Bitcoin’s volatility has made long-term holding a challenge for most investors.

• Techdev argues that only those with strong conviction could withstand Bitcoin’s price fluctuations.

• Bitcoin’s compound annual growth rate over 13 years stands at 102.79%, highlighting its potential.

Discover why holding Bitcoin long-term is more challenging than it seems, as experts weigh in on investor conviction and market volatility.

What Makes Holding Bitcoin Long-Term So Difficult?

Holding Bitcoin long-term is challenging due to its extreme volatility. Investors often face significant price corrections, making it hard to maintain confidence in their investments. Many early adopters would likely have sold during downturns, missing out on substantial gains.

Why Do Some Investors Succeed in Holding Bitcoin?

Successful long-term holders, often referred to as having “diamond hands,” possess a strong risk tolerance. They resist the urge to sell during downturns, which is crucial for capitalizing on Bitcoin’s long-term growth potential. Crypto entrepreneur Anthony Pompliano emphasizes that the discipline to hold is often underestimated.

Frequently Asked Questions

What is the average return on Bitcoin investments?

Bitcoin has recorded a compound annual growth rate of 102.79% over the past 13 years, showcasing its potential for high returns.

How can investors develop the discipline to hold Bitcoin?

Investors can cultivate discipline by setting long-term goals and understanding the historical performance of Bitcoin, which often rewards patience.

Key Takeaways

• Long-term holding requires conviction: Most investors may not have the discipline to withstand volatility.
• Market corrections are common: Understanding Bitcoin’s price history can help manage expectations.
• Patience pays off: Those who hold through downturns often reap significant rewards.

Conclusion

In conclusion, while many believe they could have held Bitcoin from its early days to today, the reality is that only a small fraction possess the conviction needed to endure its volatility. Understanding the challenges of long-term holding can better prepare investors for future market fluctuations.

• A crypto trader has said early Bitcoin investors very likely wouldn’t have the conviction to hold onto the cryptocurrency for over a decade through its sharp corrections.

• The odds of an early Bitcoin investor buying the cryptocurrency when it was worth cents and keeping those holdings until today to make them a billionaire are extremely low, says a crypto trader.

• The trader, known as Techdev, shot down the notion that many traders could’ve held onto Bitcoin (BTC) from its early days in an X post on Tuesday, which has been viewed nearly 3.5 million times on the platform.

Discover why holding Bitcoin long-term is more challenging than it seems, as experts weigh in on investor conviction and market volatility.

Most people wouldn’t have the conviction to hold

“If I put $100 into Bitcoin in 2010, I’d have $2.8 billion now.” No,” they wrote.

The post listed Bitcoin’s brutal corrections over the past 15 years, saying that only someone with significant conviction could have held on to a Bitcoin investment while watching it rise from $1.7 million, only to then fall to $170,000, to then gain $110 million, only to see it crash again to $18 million.

Although the argument has been made before, Techdev’s post triggered reactions across the crypto industry just weeks after Bitcoin reached an all-time high of $123,100 on July 14.

Over the past 13 years, Bitcoin has recorded a compound annual growth rate of 102.79%, according to Curvo data.

While many people claim they would be retired today if they had invested in Bitcoin early, numerous crypto executives agreed with Techdev’s view on the reality being that most would not have had the discipline to hold long-term.

Those who do are known as having “diamond hands,” a crypto slang term for investors with strong risk tolerance who hold through high volatility.

Holding Bitcoin long term “easier said than done”

Crypto entrepreneur Anthony Pompliano echoed a similar sentiment. “Everyone thinks they would have held Bitcoin from pennies to billions of dollars,” he said in an X post. “Easier said than done.”

Many of the commenters on Techdev’s post recalled spending what would now be thousands or even millions worth of Bitcoin on various purchases or losing access to old Bitcoin wallets.

Nibiru Chain head of ecosystem Erick Pinos said an investor has to “make a choice every day, every hour, not to sell, for years.”

Other users argued that many of today’s Bitcoin billionaires were those who bought early and forgot about their holdings, only returning to their wallets once the asset began gaining wider adoption.