Recognizing your friends and foes is important in every aspect of life. Bitcoin has both friends and foes. It is difficult to recognize who is a friend and who is a foe in this instance. Let’s get transparent and see what works for the cryptocurrency spearhead and what doesn’t.
HODLers
HODLers are people who keep their crypto investments for a long period of time, regardless of how the price goes down. Some people will hold on to their investment until it reaches its target price, then they sell. The rest, on the other hand, will not give up no matter what. This class is a vital part of the crypto community.
This group of people is responsible for stabilizing the cryptocurrency price. Let me explain how they do it. They usually buy cryptocurrency when the price drops. To prevent overheating, however, they will sell their assets if there is a significant price rise. HODLers, on the other hand, keep the market under control.
We reached out to a prominent cryptocurrency influencer from India. He said that HODLers are not satisfied with their current task. They are also essential to the maintenance of bitcoin’s supply. HODLers are, therefore, bitcoin’s friends.
Speculators
The crypto space is full of controversial players, such as speculators. They have the power to either positively or negatively influence the market. Speculators are responsible for the volatility in the crypto market. These people are the main drivers of bull runs. The speculators are the ones who cause the sell-offs when the market turns bearish. When the bitcoin price rises rapidly, speculators shout out “bubble” and then shout out “bitcoin is dead” when it falls.
Speculators can also be called frenemies. They can cause damage to the market. They can also bring liquidity to the crypto market, and they create the buzz and hype needed in the market.
Banks
Bitcoin, unlike fiat money, is a digital asset and can be traded without the need for an intermediary. Transactions with fiat money require banking services. There are three types of banks when it comes to bitcoin’s stance. Some banks are not affected at all by cryptocurrency’s existence, while others do not recognize its existence. Others are hostile to cryptocurrency and will go to any lengths to label it a scam or bubble in order to mislead the public. This third group includes banks that love crypto. They are open to extending their services to crypto and will publicly declare that they support crypto.
Given the possibility that bitcoin could disrupt the global financial system, it is obvious that banks will remain worried or anxious. Banks are bitcoin’s enemies.
Governments
Each country’s government issues the fiat currency. These currencies are in competition with each other, seeking to be dominant and relevant. Bitcoin is also a currency that seeks relevance, but it is not backed or endorsed by any government.
While different governments may have different views on bitcoin, most governments prefer that citizens use bank-issued notes. Governments are generally bitcoin’s enemies, with some exceptions.
To gain a better understanding of the crypto world, every enthusiast must have a clear view of its foes and friends.