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But this may not be acceptable for everyone. Because everyone's earning capacity is different. Again, everyone's needs are different. Those who basically spend 80 percent of their income on basic family expenses. If they start investing without creating an emergency fund and suddenly their expenses increase and they fall into a financial crisis or disaster, they will not be able to maintain their investment. This will not maintain the long-term normal rules of Bitcoin.
You can do whatever you like Xhowdhury, but the fact remains that it's wrong to set up an emergency funds before investing. Do you know how long it will take you to set up an emergency funds of at least three months of your expenses from your discretionary income. It can take more than a year to set it up, and you feel that's the best for you because you prioritize emergency funds over bitcoin investment. Cmon what will it profit you to waste more than one year piling up fiat currency that depreciated in value overtime instead of putting half of it into bitcoin and safe your money from inflation while your bitcoin investment continues to grow bit by bit. If your monthly expense increases and you don't have any discretionary income, you are not to buy bitcoin at that time but wait till the next pay day when you have a discretionary income before you buy again. Your emergency funds isn't to take care of family basic needs and monthly expenses. Rather, it should be only used when there is a real life emergency. Your bitcoin investment should be given the first priority, followed by your emergency funds because emergency may come or not, but it's better to be prepared for an unforeseen circumstances which is why when you don't have an emergency funds, you don't need waiting and wasting time to build it because emergency might not come. It's better to build it along side with your bitcoin portfolio. It does not mean that because you are building your emergency funds with your bitcoin investment that you wouldn't be able to hodli your bitcoin investment for long term. There is no need building an emergency funds to protect your bitcoin investment when you don't have any bitcoin because you have nothing to protect. Bitcoin is an investment and you should be thinking on how you can accumulate as many bitcoin as possible overtime, by looking for other mean to increase your income when you have started investing and cut down your expenses in order to enable keep your bitcoin investment ongoing without selling a dime. I think the balanced, practical approach is to start both accumulating Bitcoin and an emergency fund at the same time, but to prioritize liquidity until a minimal safety net is in place. You just have to allocate your discretionary income with a temporary tilt toward the emergency fund, for instance like 60 to 70% to cash, 30 to 40% to BTC until you’ve covered 3 months of essential expenses. This lets your DCA consistently so you don’t wait on the sidelines while still building protection against life shocks that might otherwise force you to sell BTC at a bad time. |
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Bitcoin mining consumes huge amount of electricity, especially in regions where the power source is coal or gas. This raises concerns about carbon emissions and climate change. At the same time mining is also pushing innovation in renewable energy, since many miners are switching to solar, hydro, and wind power to cut costs and reduce impact. But Bitcoin can also make use of wasted energy that would otherwise not be used at all, in regards to this do you think Bitcoin mining is a real threat to the environment, or can it actually become a driver for cleaner energy in the future?
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2. Make use of the 50/30/20 allocation rule: 50% of your income allocation should go to taking care of essential expenses and immediate needs. The mistake people often make is neglecting this aspect, forgetting that it is actually inevitable and unavoidable, even when you manage to avoid it today, it'll come back tomorrow bigger, and you'll be forced to still sort them out, thereby messing up your plans. 30% goes to your discretionary income and the other 20% towards your savings and also for debt repayments.
Adopting the DCA strategy as guide was totally resourceful to me,though the 50%,30% and20% could be adjustable depending on personal priorities at the moment,investment requires nothing but determination so that the end result will turn out juicy,sometimes circumstances could change the initial plan to 40%,40%,20%,this is where I totally advice investors to focus on initial decision and be determined to survive outside the investment so that one's result wount fluctuate when others are rejoicing. There are some problems with the division, and sure it could be possible that we could elect to have our basic expenses to be somewhere in the ballpark of 50% of our income, and once we figure out what our basic expenses, then the rest is discretionary income. Portions of our discretionary income that we allocate towards debt servicing is not discretionary income, that is part of basic expenses. With our discretionary income we can choose to invest (save), or consume. Each of us can figure out how much of our discretionary income we want to allocate to each of these. Most people are not going to have 50% of their income as discretionary income, so 50% is pretty high. many will fit somewhere in the ballpark of 10% and 30%. You are actually right and I agree with these points. Firstly, the 50%, 30% and 20% division may not work for some people due to high expenses demand and or the level of income that comes in. We know that expenses varies alot. Mr A might be spending a whole of 70% of his income on expenses while Mr B might just be needing 45, 50% or there about to clear up weekly of monthly basis needs, and offcours we know that this has a whole lot to do with how far you were able to clear or provide for previously and also the level of income that comes in weekly or monthly. However, everything boils down to your level of income. A high level of income earner can work with that division formula, not even always because at times expenses can increase as I explained earlier, while on the other hand, a low income earner will find the 50% discretionary worrisome and may not work with it comfortably. So what really matters is getting to actually know what your expenses might be, or surely will be before the right discretionary can be discovered and allotted. And secondly, in picking out our discretionary, we shouldn't be too desperate or greedy in a bid to increase our accumulation speed over night by allocating big percentage to the discretionary income which in turns increases your accumulation without properly settling your basic needs and much needed expenses, because if this is done in any was, would hunt you within the week or month of such rash decision. So I think individually, investors should check their possible income, determine there sure expenses and from it do there division to suit all sides and ensure peaceful living and accumulating simultaneously. It very clear that the formula that works for Mr A may not work for me I totally agree with this point because no one’s financial life is the same. If you don’t fully understand your real expenses, it’s easy to set targets that you cannot meet up. Building a balance between covering needs and slowly growing investments like Bitcoin is safer than rushing in with percentages that are not realistic.. In the long run, steady progress with a clear view of your income and expenses will always give better results than forcing yourself into a strict formula, So I agree with you. |
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prices are lower. Starting a dca say 100 usd a week for a year would be an okay move. Doing 100 usd a week for 2 years would be better. As long as you Just stack them and hold them.
Especially now, DCA is the most appropriate pattern to use. A decline can occur at any time and continue if we look at the BTC price chart, although it's not considered particularly necessary. But for me, it's quite helpful. Adding a small amount, even if I have good moment to get a really low price in the past two or five days. Investing in Bitcoin requires a level of psychological skill in relation to risk management as the system is volatile it can fluctuate anytime. Everyone has their own choice, their own money, and their own level of risk they can handle so if you can't handle such level of volatility then investing in Bitcoin isn't for you. |
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Thinking of this, Bitcoin have been around since 2008 which is over a decade now and truly speaking it has changed the way we see money. Since it's not controlled by any government, this makes it borderless as anyone can send and receive value in few minutes and it tends to give financial freedom to anyone that invest into it reasonably.
But reasoning this carefully is Bitcoin stable enough to replace our everyday money or just a digital assets like gold and others relating to as the price goes up and down on a daily basis. On a second thought is the truth in the middle of being the future of money or a digital asset? Since it can be used to hold and protect wealth against inflation or anything of such.
What about countries with weak money system?
Do you think that Bitcoin will one day replace traditional money, or will it remain mostly an investment like digital gold?
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Yea most successful persons have a mentor but though very few rise themselves, the importance of having a mentor is that they can provide invaluable guidance, support, and insight. A mentor offers a wealth of experience, which helps to navigate challenges and avoid common failures. They can also provide networking opportunities which can accelerate personal and professional growth. In our society today, mentorship is not tied to a physical guardian but an individual can choose to have an online mentor that aligns with his thriving path and still excel.
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Yea, especially in our present society with advance technology like the AI and data science some service might not have monetary value but the user data and information serves as exchange which are used to train differs AI models. For instance, our most used social media platform Facebook, it usage is free but it operates in a model where user data is exchanged for access to the platform, this information is used to create targeted advertisements which is the key aspect of Facebook revenue strategy.
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