Friday, March 12, 2021

Thoughts on BTC Exit Strategy

Hello all, first post here in r/CC . I first bought BTC (along with several other alts) in late December 2020 and have been lurking here ever since but one thing that has been on my mind more than most lately and so I decided to finally come out of my shell and say it.

Originally my plan was to flip my BTC fast. I wanted to take advantage of the incoming stimulus and inflation, hoping these things would lead to a massive surge in the price, then sell all my BTC at once. I am still hopeful that these things will come to pass and stoke the crypto markets, however, now I am having second thoughts about that plan. Originally I was operating under the assumption that BTC was on its way out: that it is old tech that will soon become obsolete and replaced by newer projects. Being the leading coin on the market, I thought it is a safer investment than other coins in the short term, but that someday soon people are going to abandon it for newer projects.

Now, however, I am wondering if BTC might be more resilient than I originally thought. Institutional investors are showing no sign of slowing down and are using BTC as digital gold. I'm strongly considering reformulating my exit strategy around that. In essence: as long as large institutions are buying/holding BTC, so will I. I think.

The big questions now occupying my thoughts are:

1) As long as large institutions continue to buy up bitcoin, will it be worth it to HODL?

2) How long can this trend continue? At what point will large institutions a) stop buying BTC or b) start selling off their holdings and what do you think will happen in such an event? Would that be a good time to exit?

3) Even if some newer project(s) come along and replace BTC in terms of functional purposes, could it still be used as a hedge against inflation? In other words, could it retain its value even long after people have stopped using it?

What are your thoughts? Do you have a BTC exit strategy? If so I would love to hear what/why? Thanks for hearing me out. I look forward to hearing your opinions.


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