20 upvotes, 1 direct replies (showing 1)
View submission: When HODLERS RETIRE
That's not how hodlers retire.
You are still stuck in fiat-think.
You assume that a hodler only keeps their Bitcoin until they have reached enough fiat worth to retire, then they sell them all for fiat to live off that fiat (possibly in conventional investments) during retirement.
That's not how true hodlers do it. Why would they sell their stash of the hardest asset for depreciating fiat?
Instead, the retired hodler simply spends their Bitcoin to fund their retirement. I.e. they spend it sat by sat for whatever they need (food, transportation, necessities, utilities, housing, travel, luxuries...). In the current financial system that means using fiat as a payment layer, i.e. selling small batches of Bitcoin for fiat over time (like reverse DCA) to then spend that fiat, only selling more Bitcoin as the fiat runs out (and as said, not all at once).
In the future, it may become possible more and more to spend Bitcoin directly, without going through fiat first.
Also in the future, it may become possible to safely borrow against the Bitcoin stash, thus opening avenues of spending without selling. But that's in the future, and probably only for the large hodlers.
With this type of hodler retirement, there is no armageddon moment when lots of hodlers suddenly decide to flood the market with their holdings, to "cash out".
Comment by Bowie19101999 at 03/12/2024 at 11:24 UTC
3 upvotes, 0 direct replies
Thanks for explaining!