Cryptocurrency is a digital currency that is used over the internet and is not dependent on a central authority. Cryptocurrencies are traded with a distributed ledger technology called blockchain and secured with cryptographic hash functions. The most well-known among cryptocurrencies is Bitcoin.
In cryptocurrency, a bag means owning and holding a cryptocurrency for a long time. Bag is an abbreviation of the English term "bag holder" and means "bag holder". The holder of the bag believes that the value of the cryptocurrency will increase and does not sell it. Owning a bag is both advantageous and risky.
The advantage of owning a bag is to make big profits in case the value of the cryptocurrency rises. For example, a person who bought $1000 worth of Bitcoin in 2010 and hasn't sold it to date now has a net worth of about $60 million. Owning a bond also demonstrates trust and commitment to the cryptocurrency market.
The risk of owning a bag is to incur a huge loss if the value of the cryptocurrency falls. For example, Bitcoin, which reached the level of 20 thousand dollars in 2017, decreased to the level of 3 thousand dollars in 2018. In this case, the owner of the bond has lost a large part of his investment. Owning a bag can also lead to desensitization to the fluctuations of the cryptocurrency market and to miss opportunities.
Having a bond in Cryptocurrency is an issue that every investor should decide according to their own strategy and goals. While some investors prefer to be tied by thinking long-term, some investors may avoid being tied by taking profits or cutting losses. Given the volatility and uncertainty of the cryptocurrency market, time will reveal how wise it is to own a bond.