[...] my newbie coiner cousin proves to be a true HoDLer. Y'day I emailed him telling him not to worry about the dip and to not sell his newly bought 0.1 BTC (bought @ $58k). He replied saying "don't worry about it, I see the dip and will raise you by buying moar!" WTF? Is he a poker player and I didn't know? That's the spirit.
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[...] My new-coiner cousin bought his first 0.1 BTC @ $58k a couple of weeks ago, and now, instead of worrying, he just wired another $6,000 to buy the dip. Some of us ought to learn from him.
I have some fiat ready to BTFD too, but just REALLY busy with work...
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My cousin's $6k is split into two orders: $3k @ $34,100 and another $3k @ $30,500, waiting to be filled.
I was a bit reluctant about these orders, I suggested for him to buy at market price and be done with it, but it looks like he may get lucky.
Or not. [...]
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Lucky or not, my cousin is in for a pleasant surprise when price reaches and exceeds $100k, which could happen sooner that we think. Any time is a good time to buy corn, that's Bitcoin 101. We'll wait until sometime next week and if his orders are not filled, I'll log-in to his Kraken account and buy everything at market price (I have his log-in details, he trusts me).
hahahaha
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By the way, bitebits, it might be helpful for you to go into some details with some kinds of hypotheticals in terms of the way the real world works in which people have cashflows,
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So, ok. bitebits. How you going to handle this hypothetical situation? [...]
Dear JJG, there was no hypothetical situation. You made it into one. The cousin of AlcoHoDL, BeerHoDL, is attempting the art of dip buying to lower the cost average of his 0.1 BTC (nothing wrong with that, as long as BeerHoDL is aware he is now putting more dollars into Bitcoin than he initially planned for). All I said that with greedy limit orders you are gambling, trying to be smarter than the market who determines the current price of a bitcoin. AlcoHoDL knows this is malpractice and has a market buying backup strategy for his BeerHoDL cousin, at the cost of potentially stacking less sats than he could have had today. No need to over complicate matters. Just buy, get your coins of the exchange, and hodl. There is way too much confidence these days exchanges don't do what they always have been doing: get hacked or ‘hacked’. And you unfortunately (purely as real life example for anyone new into Bitcoin, nothing personal) can confirm first hand how costly such not-your-keys strategy is, no matter how smart or fine tuned. |
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Agree with JJG @AlcoHoDL, very risky strategy. Any current price is a good price, waiting for it to go lower is just speculating (against a 12-year trend!).
I know that you did not ask me bitebits, but I am having trouble resisting to suggest that any new money should be considered in three categories and then apportioned accordingly. So there is lump sum investing, DCA and buying on dips. Of course, the apportionment can be made in accordance with personal preferences, yet the initial default position should be 1/3 in each category. Of course, personal circumstances should allow for both not ONLY how much to apportion in each category, but then how to manage such apportionment within the categories in terms of how much, price intervals and time intervals. So my suggestion is to start with the defaults and then tailorize. If a person is a no coiner, then it would seem to be smarter (not saying that no coiners are capable of being smart) to be more aggressive in terms of making sure to get a starting stake in BTC.. whichever categories of achieving the initial allocations, and of course, if someone has been a coiner for a long time, including reaching fairly aggressive accumulation levels of something like 10% or more, then they they would have more psychological and financial liberty to spread out their amounts more and not to be worried if they end up NOT buying more BTC with whatever cash that they have had stumbled across. Seems to me that AlcoHoDL's cousin is approaching this whole matter as if he is already a coiner with a decent allocation into bitcoin, but whatever, peeps can do whatever they are going to do.. including failing and refusing to appreciate that when they do not make sure that they get a stake into bitcoin, that they already tend to have a lot of other investments (including their income) that is likely already allocated into various kinds of fiat denominations. That is where you and I disagree or have a different strategy. To me you are just speculating by not investing lump sum. Go ahead and DCA if you can't stomach volatility, but it is a proven sub-optimal strategy versus lump sum. With buying dips you are just trying to outsmart the market. Fine if you like gambling but that has nothing to do with investing. |
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story [...] 21 coins.. if peeps are interested, [...] By the way AlcoHoDL, is this diptwat cousin of yours starting out with zero coins, which seems to be the case.... I can surely excuse someone who already has some coins to take a bit more of an aggressive stance or have a more greedy stance in terms of buying more coins.. but I was getting the sense that your cousin is a nocoiner until the BTC price crosses below $34,100. Surely better than nothing, but still...  Please go ahead JJG, love to hear stories about lost fortunes. Agree with JJG @AlcoHoDL, very risky strategy. Any current price is a good price, waiting for it to go lower is just speculating (against a 12-year trend!). |
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Bitcoin will never be below  again. |
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This thread is about observing walls but is entertaining and a bit sad there are even legendary members that still don't seem to get it, selling bitcoin for fiat. That sugar rush of a few extra dollars gained will soon fade while the pain of not having bitcoins will last and increase forever.
Seems a bit of a strong statement to presume that guys need to be focusing ONLY on bitcoin when not only do we live in a fiat dominated world, there are all kinds of timeline and individualistic considerations, too. [wall of text] Not really the walls I was referring to even though your walls of text JJG have become part of the observing of walls. Nothing wrong with diversifying into other dividend producing, or life improving, assets. Or even just for having some spending money. Selling bitcoin for fiat though, just because, makes no sense to me. Even less so boasting about it in this place. Those who do clearly have not grasped yet what they had in their hands and gave away for something that can be printed out of thin air. Still a fiat mindset. However indeed no need for me or yourself to lecture anyone. Bitcoin does and will do that all by itself just fine. |
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The amount of BTC I hold has not changed at all in the last couple weeks. Well it actually went up just a little. Since I have begun to measure my wealth denominated in BTC, it has changed my perspective. These days I think about how much BTC it will take to put my children through college (maybe not worth it, lol), or buy a house or be able to retire. I don't even think about how much USD beyond doing the needed conversion since it's still the unit of account for most.
I have quit thinking about my BTC "position" in terms of what it is worth in USD. I have realized I am not in this to "make money". I am in this to PRESERVE MY WEALTH. And the reason these swings don't do as much to me emotionally as they used to is because I have begun to measure my wealth primarily in the amount of BTC I have. THEN the other things up there come into play. Yes the price fluctuates compared to USD, or houses etc. But I am used to that for now.
To the extent we measure our wealth in BTC, we have lost nothing.
And it makes me happy that the rest of the world sees that as crazy. Not because I want them to HFSP. But because it is a reliable contrarian tell that I am still doing the right thing.
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Excellent post cAPSLOCK, as always. Took some parts out to highlight but go and read the whole thing if you haven't already (looking forward to that other lengthy post in the making  ) Anyone attempting storing their wealth in something infinitely inflationary is out of their mind. Measuring your wealth in fiat makes no sense since your share is not a constant. It takes time to realize the USD/EUR is the real shitcoin, and all that matters is your share of the Bitcoin network. As soon as you understand the above, it is not you but the rest of the world that is crazy. Thinking which percentage of your bitcoin you want to allocate to a house or the college of your children, is completely rational. That is how you carefully allocate hard money since you can only spend it once. This thread is about observing walls but is entertaining and a bit sad there are even legendary members that still don't seem to get it, selling bitcoin for fiat. That sugar rush of a few extra dollars gained will soon fade while the pain of not having bitcoins will last and increase forever. |
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https://taproot.watch/minersIf BTC.com is able to upgrade all their nodes in the coming days, we will have taproot activated next difficulty epoch!
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Bitcoin’s Initial Block Download (IBD) [...] and verification can be up to 62% faster compared to Bitcoin Core.https://blog.bitmex.com/faster-blockchain-validation-with-utreexo-accumulators/ Faster Blockchain Validation with Utreexo Accumulators
BitMEX Research
19 May 2021
Abstract: In this piece, 100x Group grantee Calvin Kim announces the success in speeding up Bitcoin’s Initial Block Download (IBD) using the Utreexo client. While the speed improvement can vary depending on one’s local hardware and bottlenecks, the initial download and verification can be up to 62% faster compared to Bitcoin Core. Since many optimisations are yet to be implemented, the speedup is expected to increase. Calvin goes on to talk about how the IBD can be split up into multiple tasks, and therefore conducted by multiple computers. Eventually the plan is to implement Utreexo in C++ and get it merged into Bitcoin Core. While this may be a long way off, the C++ implementation has already been started.
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Jimbo throwing his bitcoins into a lake should have been a warning signal. Hohum.
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There is a part of the tweet missing (no period at the end of the sentence): To clarify speculation, Tesla has not sold any Bitcoin (which should be written with a lower case b) but I did. |
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