Holding Only Bitcoin for 12 Years: Why Some Investors Refuse to Own Stablecoins
In a recent interview published by SeaTalk, crypto investor Hu Yilin shared his experience of holding Bitcoin for over 12 years—and expressed a very clear position:
“I only hold Bitcoin. I don’t hold stablecoins.”
In his view, Bitcoin’s real challenge is not gold or stocks, but the entire fiat monetary system.
This philosophy—often referred to as the Bitcoin Standard—is not uncommon within the crypto community. But for many investors, it still represents a relatively radical investment approach.
Which raises an interesting question:
Why do some people completely reject stablecoins?
What Is the “Bitcoin Standard”?
The Bitcoin Standard is built on a simple idea:
Treat Bitcoin as a long-term store of value.
Within this framework:
- Fiat currency is mainly a medium of exchange
- Bitcoin is the primary long-term savings asset
As a result, many Bitcoin supporters follow an investment approach that emphasizes:
- long-term accumulation
- minimal trading
- rarely selling Bitcoin
In crypto culture, this strategy has a well-known name:
HODL.
Why Some Bitcoin Supporters Avoid Stablecoins
For committed Bitcoin advocates, stablecoins present several key concerns.
1. They Still Depend on the Fiat System
Most stablecoins are pegged to the U.S. dollar, including:
- Tether (USDT)
- USD Coin (USDC)
Their value ultimately relies on the traditional dollar-based financial system.
From a Bitcoin Standard perspective:
Holding stablecoins does not truly escape the fiat system.
2. Centralization Risks
Stablecoins are typically issued and managed by centralized companies.
This introduces several potential risks:
- wallet addresses may be frozen
- regulatory intervention
- custodial risk
In contrast, the Bitcoin network is decentralized.
No single organization has the authority to freeze or control Bitcoin accounts.
3. Long-Term Inflation
If the U.S. dollar gradually loses purchasing power over time, stablecoins tied to the dollar will lose purchasing power as well.
Bitcoin, however, has very different monetary characteristics:
- a fixed supply of 21 million coins
- a transparent issuance schedule
For many Bitcoin supporters, this makes BTC a better candidate for long-term savings.
Why Long-Term Bitcoin Holding Remains Popular
Within the Bitcoin community, long-term holding has always been one of the most common strategies.
There are several reasons for this.
1. Long-Term Price Trends
Historically, Bitcoin has shown an upward trajectory over long time horizons.
This has led many investors to believe that:
holding for the long term may outperform frequent trading.
2. Reducing Emotional Trading
Frequent trading often leads to emotional decisions, such as:
- chasing rising prices
- panic selling during downturns
Long-term holding helps reduce these pressures.
3. A Simpler Strategy
A strategy of regularly buying Bitcoin and holding it long term is relatively simple.
Many investors follow a combination of:
Dollar-Cost Averaging (DCA) + long-term holding.
Practical Advice for Long-Term Bitcoin Holders
In the interview, Hu Yilin also shared several practical recommendations.
1. Invest Only Spare Capital
Do not invest money needed for daily living expenses.
Instead, use funds that can be allocated for long-term investment.
2. Avoid Borrowing to Go All-In
Investing borrowed money carries significant risk.
If the market drops sharply, it can create severe financial pressure.
3. Protect Your Private Keys
For Bitcoin holders, the most critical security factors are:
- private keys
- seed phrases
If these are lost, recovering the funds is almost impossible.
Is Holding Only Bitcoin Too Extreme?
For many investors, holding only BTC may be overly concentrated.
A more common approach is to diversify assets across:
- Bitcoin
- stablecoins
- other crypto assets
For that reason, the Bitcoin Standard is often viewed more as a philosophy than a universal investment strategy.
What Bitcoin Supporters Ultimately Believe
At its core, the belief of many Bitcoin advocates is quite simple:
Bitcoin is a better form of money.
If that assumption proves correct, long-term accumulation could be a rational strategy.
However, if the global financial system does not change significantly, this strategy could also face substantial risks.
Conclusion: The Bitcoin Standard Is Ultimately a Philosophy
Holding only Bitcoin for 12 years represents a classic Bitcoin Standard mindset.
Within this framework:
- Bitcoin is a long-term savings asset
- fiat currency is mainly a transaction tool
- stablecoins are only temporary instruments
Whether this strategy ultimately proves successful depends on a larger question:
Will the global monetary system fundamentally change?
If the answer is yes, long-term Bitcoin accumulation could turn out to be a winning strategy.
If the answer is no, a more diversified portfolio may offer greater stability.
FAQ: Bitcoin vs. Stablecoins
What is the Bitcoin Standard?
The Bitcoin Standard is the idea that Bitcoin should function as the primary long-term store of value, while fiat currencies serve mainly as mediums of exchange.
Why do some investors avoid stablecoins?
Key reasons include their dependence on fiat systems, centralization risks, and potential inflation erosion.
Is long-term Bitcoin holding safe?
Long-term holding can reduce emotional trading decisions, but Bitcoin’s price volatility still carries risk.
Should most investors hold only Bitcoin?
Not necessarily. Many investors prefer diversified portfolios rather than concentrating entirely in a single asset.