So if you have 100 BTC and that is less than 10% of your total liquid, you must have at least $500K to $600K liquid, which, in my opinion, calls for a much different strategy than somebody who is 22 years old, just starting in the workforce, and doesn't have a ton of assets. If I were in that place, I'd swing for the fences. I'm in mid-career and working towards an early-ish retirement. BTC is part of that strategy, if nothing else, as an inflation hedge, but as a small part of my total portfolio. I've got a bunch of dry powder right now, though, so I bought this morning at $528 and change and I'll buy again on dips. I guess if we get another hard dip (which will cause me to buy) and a run to a new high, my allocation might change!
I'm in a similar age range as you mid-to-late 40s, and I have been building various classes and quantities of assets (including some assets that are more liquid than others) for 25 years-ish....
So, yes for sure age and acquisition of assets do affect strategies, and from time to time, I reconsider my investment portfolio and my risks and my redistribute within the portfolio.
Actually, I have been considering increasing my ability to travel and to maintain my income with location independence living, and there continues to be concern about the extent to which I need to work to preserve my assets or to build my assets and whether I have enough assets and income stream to maintain my lifestyle reasonably living within my means.. and the more passive the income the better.
Last fall I was considering potential ways to hedge against the dollar b/c a lot of my assets have been very tied to the success or failure of the dollar. In November 2013, I began reading about bitcoin in this context to want to hedge against the dollar. Not a great time to start reading about BTC, but better later than never, and surely, i am mostly inclined towards thinking that we are still amongst the "early adopters" in the BTC space.
After doing a quick and preliminary assessment of the bitcoin situation, I started investing in BTC at the end of November 2013, at the peak of BTC prices... However, I realized that BTC prices had just experienced about a 9x appreciation within the previous few months, so accordingly, I began to invest slowly into BTC with my first purchase at just 1.24BTC. I was cautious b/c I felt pretty confident that BTC prices could NOT keep going up at that rate, but I still wanted to get some skin in the game, just in case the exponential growth continued (I wanted to be onboard for such).
At that point in late November 2013, I dedicated $30k to be invested over the next approximately 6 months (until May 2014), and I thought that maybe I would end up acquiring about 30 BTC-ish during that period, while front loading my investment to some extent, in order to get some skin in the BTC game. During that time that I was making some initial investments into BTC, I continued to read up on BTC during that time and more or less stuck with my initial BTC investment plan until about mid-February 2014. By that point (mid-2/14), I had acquired about 26BTC for less than $20K and an average buy in price of about $750.., but BTC prices continued to be in the $600 range, which was below my then $750 buy-in average. Accordingly, I decided to UP the amount that I was allocating towards my BTC investments b/c I had been learning more about BTC in the preceding months and I had been gaining increased confidence in its various fundamentals (including adoption, regulations, liquidity, investments, news coverage and other factors).
As we may recall that in late February 2014 and in mid-April 2014, BTC had two price crashes (to the $400s and into the mid-$300s respectively). By one point in May 2014, I was able to bring down my average BTC buy-in price to $595 (including transaction fees); however, my current average BTC buy-in price is about $610.
I do continue to buy on dips to the extent that I can attempt to figure out the dips, and I have fiat available and dedicated to buying BTC. I try to keep some on reserve fiat on hand to be able to continue to buy on dips, but it becomes easy for me to run out of fiat when BTC prices are crashing and if I had already bought some BTC at a higher level during the crash (that I thought may have been the bottom).
Of course, we attempt to buy on the price dips.. but who knows for sure the extent and duration to which the BTC price dips are gonna be, yet in the long run, it seems that it will NOT matter too much b/c BTC seems pretty likely and posed to have another exponential increase in price.. which will likely make up for the much sloppiness in attempting to accumulate more of it. So, instead of acquiring 354 BTC, a person may ONLY have acquired 320 BTC, but in the end, it may NOT matter too much.. whether it was the higher or the lower amount of BTC in the portfolio.. especially if BTC happens to have one or two more exponential growth periods.
