To 10x in a volatile market is great, but to exit at 100x takes some serious discipline. I want to meet the man that had Bitcoin at ~$25 and is still holding at 100x today. Not the person that lost a computer and found it years later, instead…someone that had Bitcoin for all those years and could of sold at any time, but chose to hodl. For this person is either insane, or has a rare sense of conviction and can think long term.
To ignore the short term fluctuation when Bitcoin has been declared dead over 150 times by powerful businesses and experts since 2011 would drive the common person insane. The social pressures to sell out and ‘take profits’ would be overwhelming.
The best part about this person is that they probably will never ‘sell’ Bitcoin into a fiat currency, as when they are ready to sell, they won’t need to. Bitcoin may come of age by that time and be a worldwide currency and store of value that people would prefer anyways to all the problems that fiat currencies are prone to. For example, no fiat currency has even been successful, all have failed. It’s just a matter of time before your favorite fiat currency fails, will you live to see it?
Chris Mack writes:
According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.
The average life expectancy for a fiat currency is 27 years, with the shortest life span being one month. Founded in 1694, the British pound Sterling is the oldest fiat currency in existence. At a ripe old age of 317 years it must be considered a highly successful fiat currency. However, success is relative. The British pound was defined as 12 ounces of silver, so it’s worth less than 1/200 or 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value.
Given the undeniable track record of currencies, it is clear that on a long enough timeline the survival rate of all fiat currencies drops to zero.
And Jeff Clark points out:
History has a message for us: No fiat currency has lasted forever. Eventually, they all fail.