Understanding crypto bag holders and their mindset

For the first time since the 7th century, the paper-money economy found its true competition in the internet era. With Bitcoin’s (BTC) debut in 2010, the fiat ecosystem was not only challenged with proving its worth in day-to-day transactions but also safekeeping the investment ecosystem it helped build.

Over the years, the crypto ecosystem attracted people from all walks of life — serving their unique financial needs while filling the gaps left wide open by the fiat ecosystem. While most of the world watched from the sidelines, trying to decipher the true potential of cryptocurrencies, the first batch of Bitcoin millionaires swayed investors’ attention toward the budding ecosystem.

The freedom to stick to what makes the most sense financially sprouted various classes of investors, each distinguished by their intent behind crypto investments. Based on the overall approach taken by investors, there are four main categories of mindsets of crypto bag holders — Maximalists, hodlers, fomoers and traders.

Maximalists

Right from the day Bitcoin showcased its cross-border supremacy after being used as a currency on the dark web, numerous investors witnessed a true peer-to-peer monetary system for the first time. What followed was a pledge to stick with Bitcoin and see it overpower the centralized entities, i.e., bringing power back into the hands of the people.

This total support for Bitcoin and the belief that BTC is the only true replacement for the fiat economy gave birth to the term Bitcoin maximalism. Bitcoin maximalists have, time and again, advised the community members to hodl their assets during the bear market. Instead, they often recommend buying the dip — a process that involves investing in crypto during the market’s poor performance. And over the last decade, the recommendation checks out.

#Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.

— Michael Saylor⚡️ (@saylor) September 18, 2020

However, maximalism is not limited to Bitcoin has spread widely across other crypto ecosystems as well. Investors and crypto enthusiasts that have committed years to the growth of their preferred blockchains and cryptocurrencies have a belief pattern similar to Bitcoin maxis. Ethereum (ETH), Dogecoin (DOGE), Shiba Inu (SHIB) and XRP (XRP) are the few leading cryptocurrencies that have garnered loyal maximalists over…