Not posted in a while just trucking away with dca and stacking. Was out in the world enjoying life and started to notice Btc in general life, from billboards, graffiti, bitcoin atms etc. I’m not sure if it was always there or not but what do we think about this type of engagement with Joe Public. I wonder has anyone found their way here from something like seeing a btc atm in their local area.
I’m having some serious internal debates on whether to over allocate into Btc this year, I had set some targets around totals with what I felt was balanced and am approaching these way sooner than I thought was possible. With WO’s who have over allocated before any learnings to help me with my own decisions?
Another one been wrestling with is continue to allocate same during a bull and new ath, or under allocate for that time. I see comments about oh know if you bought at the top it’s bad but wouldn’t all dca’rs have bought at the top?
Well? It depends on what you mean by overallocation. So if you have already invested in a variety of assets, and then you are going to bring your BTC allocation to somewhere in the 1% to 25%, then maybe overallocation would be going more than 25%, or if you had set your goal to be 10%, and then over allocation would be going higher than your original goal.
Another thing is whether you feel that you really have your various expenses more than covered in case bitcoin prices go sour for 2-6 years, and then are you going to be needing to dip into your BTC at a time that is not of your own choosing, or would you be able to ride it out?
Firstly thanks for responding, when I say over allocate I mean allocate more than I planned for that year. In this case going from 5% to 13%. Then next year going from 13% to 20%. I think it’s the right term then to say over allocate in this sense. My fun money or my investment money is a bucket after all the other stuff(including rainy day fund). All my investments are long term, and in the green even during this time(btc just about hah)
I do consider though that if I needed to go into my investments I wouldn’t have to go straight Btc to unlock funds but I really can’t think of something happening in life that the rainy day fund wouldn’t cover.
Of course, there are some people who don't have any other investments besides BTC and cash, so that might be dangerous to overallocate under those kinds of circumstances.. so maybe questioning whether you have other investments.. and I am not even sure if I recommend getting into other investments, unless you already have them and some employers do not even have matching funds for their 401ks.. which that might cause incentives NOT to invest into 401ks.
I get the sense that you might not have had given enough information.. because when I overallocated into bitcoin from 10% to 13.5%, I had not really realized that I had gotten to 10%, and I thought that 10% would be a good target, but the BTC price stayed down for another year, and I was not exactly killing myself or causing too much extra stress on my finances or psychology by continuing to invest into BTC - but still everyone is different in terms of how solid is their cashflow. .and whether they have their emergency fund (their finances) in decent order in order to continue to buy BTC even though maybe your BTC portfolio might not be exactly profitable at the then current time, and your friends might already be speculating that you have too much into bitcoin (to the extent that any of them know much about your financial circumstances).
In this case I think it’s the psychology playing out, when I have investments perform you always get that nagging feeling you should have put more in. It’s one part greed, one part regret and 3parts content. My fun money total is the same I’m just seeing i can shift funds from other investment allocations and increase btc(lowest allocation).
And if you end up getting "overallocated" in accordance with your definition, what is that going to achieve? it potentially gets you to fuck you status more rapidly? or does it just give you more options if the BTC price ends up going up, then you feel as if it might be easier for you to shave off some profits from the BTC without feeling guilty about selling some of it?
Punchline. I need more info, and maybe you don't want to share.. which is fine also, but you are the one who asked the question.. and sure you might be able to provide more info without giving up too much OPsec... perhaps? perhaps?
I projected out what this means, and it really just means accumulating more faster. I had originally planned to set some sells in 2033 but it might bring that in closer to 2029. I’m speculating here a bit but maybe being able to retire 4yrs earlier.
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