The Chief Executive Officer (CEO) of Binance, Changpeng Zhao, said that HODL actually means Hold On for Dear Life. The Binance founder made the statement via a Twitter post on Monday, May 23. This is in the face of a bearish market that has seen Bitcoin drop below $30,000 in recent days.
HODL = Hold on for dear life.
I only learned this only 3 days ago. Learn something new everyday. 😂
— CZ 🔶 Binance (@cz_binance) May 23, 2022
HODL is a popular acronym in the cryptocurrency community that investors in the asset class use to imply holding onto crypto assets with the belief that the price of the asset would increase remarkably in the future.
Bitcoin for Pizza
Bitcoin, which has been the top coin, was once priced at less than a cent. Two days ago, the coin community celebrated a day ten years ago when someone made the first bitcoin payment.
On May 18, 2010, a Bitcointalk user, Laszlo, wrote:
I’ll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later.”
Laszlo, whose full name is Laszlo Hanyecz, later received his order. Making the deal the first time Bitcoin was used to pay for physical goods. The value of 10,000 BTC in today’s market is $300 million.
Obviously, that is a lot of money Laszlo spent on two pizzas.
HODLING of Coins
In HODLing cryptocurrencies, the owner of the coins simply stores them away with the expectation that sometime in the future that they would make a lot of gains from their coins.
It supports Charlie Munger’s quote that the big money is not in the buying and selling but in the waiting.
Hodling in its strictest sense involves saving all the bitcoins that the person owns in a cold wallet. The coins are only moved when the owner wants to transfer them to another wallet that they own. Most hodlers hold their crypto with the objective to sell them at a future date when they will be of immense benefit to them.