All terms
Someone still holding an asset well after it collapsed.
A bagholder bought high and did not sell, and is now holding a position deep underwater with little prospect of recovery.
The sunk cost trap is what keeps people there. The right question is never what you paid, it is whether you would buy it today at this price.
Every cycle produces a new generation of bagholders in the previous cycle's hottest tokens.
That a bagholder is somebody who bought badly. Almost always they bought fine and then refused to act on new information, because selling would confirm the mistake. It is a decision problem, not an entry problem.
Common questions
How do I avoid becoming a bagholder?
Should I sell a bag at a loss?
Where to go next
More culture terms
Want this explained out loud?
Some of these land faster in conversation than in writing. Sessions are one to one and you can ask anything, including the things that feel too obvious to ask.