Question....how much one would need to have (in BTC) now, to be considered wealthy men in future....2-3 years from now? Would 1 BTC be enough for reasonable comfy life? Or maybe 10? Or less?
...I only began investing in BTC in November 2013, at the high of the last price bubble, about $1,200 through Localbitcoins.com. Since I recognized the existence of a recent exorbitant increase in BTC prices, I began my BTC investment with a fairly conservative dollar cost averaging strategy, and with some frontloading, and I calculated that I would make my initial investment(s) over 6 months, rather than front-loading all of my investment at that then current price point. Accordingly, my first BTC was $1,200 through localbitcoins.com; however, currently my average per BTC is about $614, including transaction fees.
I expect the percentage of my investment into bitcoin to continue to fluctuate based on my monitoring and reassessing the whole investment landscape and how I feel that bitcoin and my involvement fits into that. .. though at the moment, I am thinking that I want to be diversified somewhat out of the dollar (and dollar related products), and achieving a portfolio that is 50% out of the dollar may be an o.k. level of diversification for me and my feelings.
FWIW these comments are largely in line with my own situation & experience as well... but a bit different too, LOL.
I too only finally sat up and paid attention to bitcoin (after having heard about it, vaguely, more than a year earlier) starting around last October.
I remember reading it was currently worth $400 and thinking, "I bet it'll go to $500 pretty soon" being as how that's a sort of psychological price point. So, I tried to sign up on MtGox to buy some bitcoin, but their stupid registration approval process was running so slow, I never got a chance to do anything, all the way thru the big run-up in December. Just sat there watching it and thinking I missed out. In hindsight however, thank GOD that I did not put my money into GOX, LOL...
Anyway, after doing more research I finally found COINBASE and started buying around end of December, early January. My average price has also gone from $700-ish to like $550-ish at the moment.
My goal is also to get 50 BTC piled up ASAP, and after some mis-steps I'm currently in the 20-ish ballpark. I was as high as 40 at one point but didn't manage to stay there, unfortunately... (long story.)
Anyway, my question for you guys is, at the moment I believe I could get to "40" again, immediately, but ONLY if I totally liquidate every other asset that I currently hold... mainly some gold & silver but also "cash on hand" for "emergency" etc that's usually left sitting totally unproductive in the stupid bank, just left there for convenience, and maybe selling off some unused computer gear.
Basically, and contrary to being 'diversified' as is usually good solid advice, I could get to 40 again TODAY (i.e. nearly my goal of 50, then maybe accumulate the last 10 by trading a bit over the next year or two) by basically "GOING ALL-IN" right now with BITCOIN, almost totally exclusively.
The reason I believe I need 50 is because, to be minimally financially secure in my current lifestyle I believe my wife and I (no kids) will need a retirement portfolio asset base of about $500,000 net worth equivalent.
A half-million dollars net worth equivalent, would be my basic "relax and sleep soundly at night" number, in other words.
I believe bitcoin COULD do this for me IF ONLY there is at least JUST ONE MORE cycle of the 10X yearly wave, that's repeated 6 times already so far over the last 6 years since bitcoin was invented.
Moreover, I am not aware of any other asset or business opportunity, available right now, that even MIGHT be able to achieve this.
And even if BTC never achieves the last two projected 10X wave/cycles to $100K or $1M million... if it only gets to $10K, but I own 50 of 'em? Well, there we are. $500K. Done and done.
Then if Risto and SlipperySlope, etc are RIGHT, and it keeps going, from there? To maybe $50,000,000? Well All Right Then! No Problemo!
In that case, I got my eye on a nice private island near Vanuatu
which I imagine would be very pleasant for retirement
But still, going ALL-IN is pretty scary, and risky too... kinda. But y'know kinda it's NOT EITHER, since bitcoin just FEELS to ME like I remember things "felt" when I first saw Microsoft Windows running on a DOS computer, then again when I first used e-mail, then when the first Mosaic web browser appeared for accessing the "WWW" Internet.
I really just have a gut instinct, feeling, perception, that bitcoin's gonna be the same phenomenon.
SO... Aaaaaaa.... what to do, what to do?
Go "ALL IN" or NOT?
How much is enough???
Anyone else decided this for themselves, either PRO or CON???
I believe your questions about how much and how fast to invest into BTC are ones that many BTC investors wrestle with, and each of us have to resolve these boundaries for ourselves within our risk tolerances.
Personally, I do NOT invest more than I believe I could lose; however and nonetheless, I would suffer incredible psychological set backs if bitcoin were to go to zero... or some pricepoint that approximate neighborhood.
I have a fairly thorough system in place (using spreadsheets) to monitor my projected cash flow over the coming 12 to 18 months, and frequently I am adding to its timeline in order to maintain my cashflow projection. Accordingly, I never invest more than I am able to project my cash flow for the whole time period, and so far none of that time period to late 2015 am I relying upon cash proceeds from bitcoin - however, if the price appreciates considerably (and beyond my expectations, such as into the $2500+ range), I am going to be cashing out parts of my BTC portfolio. Also, I may begin to cash out and reinvest if prices are in the $800 to $2,500 range.
Anyhow, I project my cashflow ahead in such a way that I remain fairly positive that all of my bases are covered.
If you are projecting to achieve a $500K equivalent in value in your bitcoin holdings (and/or other liquid assets), by when do you want to achieve this? And, once you achieve this $500k you would need to ensure that the amount is stable, in order that you can live off the income that it generates, no? Or, if you plan to eat into the $500k principle, then how many years would you need the total to last?
Personally, I believe that a lot of investors in bitcoin expect bitcoin to be a great holder of value, so long as it achieves mass adoption, and maybe in that regard, and even if bitcoin gains 50% value each year, then you would NOT need to worry about eating away at the principle, so long as the asset (bitcoin) is sufficiently increasing in value.... and 50% is a very decent appreciation.. .yet we have to continue to monitor bitcoin to find out if it is going to continue to appreciate in very high amounts. I believe it is pie in the sky to expect 5x to 10X returns per year in the coming years; however, it is NOT beyond the realm of possibilities... So I would NOT be totally shocked if it did return somewhere between 5x and 10x in the coming years - nonetheless, I personally am NOT going to bet the farm on it, b/c that is NOT my investment style or risk tolerance.