If you have been involved in the crypto community long enough, you have heard the term ‘HODL’ before. In a time of horizontal market movement, it is important to remain patient. However, this is not just about ‘HODLing’ until we reach the moon. Rather, I want to share why I believe patience is the best cryptocurrency investment strategy. First, let’s talk about something known as infrastructure inversion.
What Is Infrastructure Inversion?
Many people will say that blockchain network technology and cryptocurrencies are “like the internet in the early 90s.” While I won’t necessarily disagree with the sentiment, I think the statement is most appropriate when it comes to the current infrastructure surrounding the technology. Andreas Antonopolous defines “Infrastructure Inversion” as a process where a new technology, like Bitcoin or Litecoin, is laid on top of existing old technology (our current tech infrastructure).
Essentially the current infrastructure is not built to support this newer technology. Therefore, the efficiency of the technology just isn’t there yet. Think of the “square peg in a round hole” analogy.
Do you remember the audible dial-tone of AOL signing on to the internet? To be honest, when it comes to blockchain and cryptocurrency we might not even be at that point yet.
Think about trying to stream a live sports game back in the days of dial-up. It just wouldn’t not work. This is an example of infrastructure inversion. The hardware that the technology needs to run efficiently is not being used or available yet.
Your Cryptocurrency Investment Strategy Will Pay Off
You may remember in the days of dial-up that you could not receive phone calls or faxes while you were using that line for the internet. Thus, the internet was slow and clunky? Opposition would ask “Why would I send someone an email, when it is easier to send them a fax?”
At the time, that was true. It was simpler to just send a fax. Just as it is right now to use your credit card, cash or Venmo for your purchases. However, as we all know now, email has greatly surpassed fax machines. This is because the technological infrastructure began being tailored, and (somewhat) caught up, to the new/revolutionary technology. This allowed the internet to grow and develop, ultimately becoming the essential tool we use today.
The greatest technological advancements need to develop over time. Most of that time is used to improve the infrastructure to make it suitable for the new technology. This is why I believe that patience is best cryptocurrency investment strategy. You have to crawl before you walk. You have to walk before you run. And you have to run before things really take off (and moon). I believe that we are still crawling, working towards walking.
Be patient. We are already seeing hardware advancements that are allowing us to take baby-steps. We will be running before you know it. As long as you do your own research and make smart investment decisions investing in cryptocurrency you should be okay. Then we moon!