What Happens If Everyone HODL Bitcoin?
If everyone holds (stores) Bitcoin and does not sell it at all, several significant impacts will occur in the Bitcoin ecosystem and the market economy in general. Here is an explanation from various perspectives:
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š 1. Market Liquidity Drops Sharply
If no one is selling, then there are no trades. This means:
Liquidity will disappear, so those who want to buy will not be able to obtain it.
Prices can become highly volatile because there are very few sellers available (if any).
The order book becomes quiet, and price spreads widen.
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š 2. Prices Could Rise Extremely (But Not Realistically)
In economic theory:
Demand remains high, but the supply available in the market = 0.
Thus, prices could skyrocket due to scarcity. However...
This only happens if there are still buyers willing to pay high prices.
If no one is selling, then transactions do not occur even if prices "rise".
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šø 3. No Economic Activity in the Network
Bitcoin is used for:
Trading
Payment for goods/services
Value transfer between countries If everyone hodl:
The network becomes passive
Bitcoin loses its primary function as a medium of exchange
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š 4. Miners Could Lose Money
Miners receive:
Rewards from new blocks (which are getting smaller)
Transaction fees (fees) If there are no transactions:
Low fees ā income decreases
This could cause some miners to stop mining
Network security could weaken (hash rate decreases)
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š§ 5. Market Psychology Does Not Support "Everyone HODL"
Realistically: there are always those who need money or want to take profits.
Large investors (whales) and institutions will certainly take profits when prices are high.
Thus: "everyone hodl" is a theoretical scenario that cannot last long.
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āļø 6. Bitcoin Could Become More Like Gold
If many people hodl for the long term:
Bitcoin could become a store of value like gold.
But if it is not actively used, it could lose its function as a medium of exchange.
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