Hodling Is Limiting Widespread Adoption Of Bitcoin – Lawrence Lepard

Bitcoin

There are many holders of Bitcoin that do just that – holding the cryptocurrency. The hodler as this class of investors are called, never sell their bitcoins because of the belief that the value of the digital currency will continue to appreciate over time.

Some hodlers believe that a Bitcoin investor should hold the asset for upward of 10 years before they even consider selling at a massive gain. This doesn’t promote adoption according to Lawrence Lepard, Investment Manager, Equity Management Associates, LLC.

Two Books To Change Perspectives

Leopard, who himself was a hodler said that his views towards holding BTC indefinitely changed after he came across a book by Alex Gladstein, Check Your Financial Privilege. He said that his recent outlook to hodling has also been influenced by Jeff Booth’s Price of Tomorrow.

In a July 17 tweet, Leopard echoed the sentiment of all holdlers who wonder why people would sell Bitcoin which has proven to be a great store of value.

From Hodling To Spending

The Twitter post says:

“I was just a HODL person until recently. Great store of value. Why would I ever want to sell or dispose of BTC ? Then i read @gladstein‘s book and i interacted with @JeffBooth and they made the point that if we want to drive widespread adoption, we had to promote usage”

Apparently, both influencers are of the opinion that hodling would rather place a large chunk of BTC in the hands of a few who never pass them on, making it difficult for BTC to morph to the utility of a means of transfer of value.

Low Fee Muun Wallet

According to Lepard, Gladstein’s book had practical examples of how Bitcoin adoption could be promoted. One of such examples is the Muun wallet, which has a Lightning network feature.

Lepard, who practiced some of the adoption strategies explained in the book, said that users can reduce transaction fees using a wallet such as Muun and making sure that they do not send their coins on-chain. From his experience, it costs just 7 satoshis to make a transaction on Lighting via the wallet.

Merchants Contribution To Adoption

He highlighted that one of the challenges of Bitcoin adoption is the cost of on-chain transactions. He said that instead of merchants just accepting BTC, they should move towards BTC transactions made on the second layer.

“Hopefully soon we will see signs in stores, “Bitcoin Lightning Accepted Here”. This is the way folks. Grass roots.”

Not Reporting…

One of the respondents to Lepard’s proposal about Bitcoin adoption is R Smooth, who wondered at the tax implications of making micro payments with BTC. He emphasized that tax codes around BTC actually discourages spending. In his response, Lepard said;

“I ain’t reporting it and they cannot track billions of payments. I say let them try. Are they going to figure out that I had a 20 cent gain on my cup of coffee? Good luck with that. We have to overwhelm these…”

On his part, Dennis Porter, BTC maximalist and CEO & Co-Founder

Satoshi Act Fund said that he is convinced that Lepard’s views are correct. According to Porter, the LN would be a great idea for users of BTC who want to make regular micro transactions such as tipping. Porter said,

“You’re starting to convince me. I should start a “giveaway” account for when I want to tip people.”

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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