JJG’s Outline of Bitcoin Investment Ideas

[Gentle_Soul]

Reserved 2

Opening Post 2: Getting started – assessing personal financial situation (in relation to ability to invest in bitcoin)

First things first, no?

Before any of us invest into anything, we should strive to figure out our own situation and individual circumstances to the best of our abilities.  Of course, we do not necessarily want the perfect to become the enemy of the good, but at the same time, if we cannot figure out various aspects of our own personal circumstances, then any investment that we make, whether it is into bitcoin or into some other investment, we may well devolve into gambling rather than investing.

These 9 principle individual factors that influence your decision whether to invest into bitcoin and how to invest into bitcoin have financial, skills and psychological components that include:

1)   your cashflow (which also includes ideas of income versus expenses and surely discretionary income is the difference between income and expenses),

2)   how much bitcoin you have already accumulated,

3)   your other investments (including considering your emergency fund, your float and your reserves - which are usually kinds of liquid ways to hold value in cash, dollars and/or your native currency in away that many of your expenses tend to be denominated),

4)   your view of bitcoin as compared with other investment possibilities,

5)   your timeline,

6)   your risk tolerance,

7)   your time, skills, goals (investment/lifestyle targets, which includes figuring out the extent that you are in BTC accumulation, maintenance or liquidation stage),
 
8 )   your abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time,
 
9)   your considering your time, your abilities and whether to trade, reallocate from time to time, to use of leverage and/or to use financial instruments... (and for sure the use of financial instruments, leverage and margin trading involve higher level skills and are not even necessary to still become richie in bitcoin's already existing asymmetric bet.)

These are ongoing areas in which anyone should be working upon without necessarily concluding that they need to perfect all of them or even to perfect any one category prior to being ready to start investing into bitcoin.. whether that is investing with their time, their energies and/or their finances.

I will say straight up that it can take a pretty long time to figure out all of these factors, and even if you do not know the exact answers for each or any of the categories, that lack of perfect knowledge should not stop you from getting started into investing in bitcoin including that you can continue to learn and to improve upon each of the areas (and all of the areas) to better get to know yourself and your particulars with practice and continued attempts at application and tweaking along the way.

In the near future, I will be fleshing out the above 9 categories a bit more and adding them here.. but just my providing the above 9 categories should already be helpful for anyone investing into bitcoin and the main aspect still remains that bitcoin investors should be spending some time figuring out some of the application of each of these ideas for themselves.


ONLY after we go through some preliminary steps of understanding our own situation in respect to the above categories, then we should be able to set our BTC investment target allocation, and of course, our target could change over time, so if we are an already established investor with several investments and a decently long history of investing that has allowed us to accumulate investment assets.. perhaps over 10 years or more, then we might well decide to get off of zero and have a BTC investment target anywhere between 1% and 10% of our total investment portfolio.  The 1% to 10% range is a starting out area, and of course the more that we learn about bitcoin might cause us to gravitate to some level outside of the range.  I would suspect that the more that anyone studies bitcoin should cause him/her to go higher in terms of allocation and perhaps above the 10% level.  Furthermore, the more bullish we are about bitcoin would cause us to gravitate towards the higher end of the range and the more bearish (or timid) that we might be about bitcoin would cause us to gravitate more towards the lower end of the range.

If we happen to be a less established investor and we have no other assets, we may well allocate all of our investment into BTC until we reach a certain level that would thereby allow us to diversify after we had already reached a certain level of investment whether that is $10k or $100k or some other amount would be our determination regarding if we might need to start to diversify into other investments besides having everything into bitcoin.

Assessing your  personal financial situation and taking control of your finances,
talking about accessing one's financial situation I think there are different approaches depending on a person's current financial situation but however, there are selective approaches that could be put in use to selectively find suitable and more productive approach that suits ones current financial situation. In trying to balance your financial situation certain things should be put into consideration, look critically at the resources you have at hand, look at your expenses ensure to strike a balance between your income and your expenses to be able to have an unshaken financial status.

Your sources of income should never jeopardized for any reason, all your current assets and future investments should be properly checked and put in control from time to time, ensure to put a figure to what ever comes in for every month  and even every year that way you take charge, build your budget within the limits of your inflow ensure to always prioritize what are the basic and necessary things over the less important ones there should be a well spelt out difference between needs and wants prioritize funds on essential things. If there are possible ways to stay out of dept then do that rightly if not ensure to clear all dept before when due.

Ensure to outline where funds and resources go to and make sure to take control of finances and not just let happenstances take cause in your expenses, ensure  to always save with whatever resources that comes in no matter how small and pay up all depts and then within your reach build an investment especially with the resources you have accumulated with time, spend only when necessary ensure you can always create room for a new income and then always consider your goals and decisions

[Fara Chan]

<<<

This actual selling point can be adjusted to the market price so that people have a definite figure each time they set a safe limit. I don't know if everyone understands the margin of safety, but in essence, implementation is not difficult if people are able to implement it correctly. Conversely, regarding the budget limit used for the investment process, it will not affect the conditions of daily life. For example, if someone has a budget of $100, $60 is invested in Bitcoin and the rest can be used for other needs.

The example you provided is certainly feasible and quite easy to implement for those who already have the initial intention of investing in Bitcoin using their basic income. However, I've seen some people prefer to use 50% of their income for Bitcoin and the rest as usual, for daily living. I don't think that's a bad idea, as it falls within the techniques many people have used before. So, there's nothing difficult or oppressive about having a basic, consistent income, allowing them to immediately pursue their intention to become a Bitcoin investor.

However, for those with less regular monthly income, I've seen people who are more concerned with finding ways to buy Bitcoin and invest. For example, they might work tirelessly at a traditional market in the hope of earning some money so they can buy Bitcoin at night, saving a little for their own living expenses. This is certainly challenging, but I admire their efforts.

[ancafe]

When they get started investing in bitcoin, they can consider how much they are putting in in the beginning to front load their bitcoin investment in getting started, and they can also figure out how much they might anticipate being able to continue to invest, whether they stick with some approximation of their past investment amounts or if they might calculate some different amount, depending on how confident in bitcoin will affect their chosen level of aggressiveness that they can adjust as they get more familiar with their investing into bitcoin and getting familiar with investing into bitcoin itself (learning about bitcoin).

Our level of aggressiveness may well depend on a variety of factors that include how confident we are in bitcoin as an investment as compared with other places where we could invest, and also potentially accounting for how organized our cashflow management and back up funds.

The concept is simple, and perhaps each of us can begin based on our own capabilities after making a decision. Based on personal experience, I have an idea for achieving consistency in Bitcoin investing, and the method is very simple and organized. I used to earn only $300 a month, and I always set aside $100 each month to buy Bitcoin. Due to limited funds, I might not buy it every month, but I would look for the right moment. Sometimes, when I received a bonus, I usually didn't use it for other purposes but invested it all in Bitcoin.

I consistently implemented this tradition, and at the peak of Bitcoin's all-time high, I began to consider selling 50% of my Bitcoin. I used the profits to wait for a slightly larger purchase at a lower price when Bitcoin experienced a correction. Now, although I'm not as wealthy as others, perhaps Bitcoin has risen significantly beyond expectations, and this is the best start to continuing to buy consistently.

Yes, sir, we can increase our aggressive level depending on many things. For example, our financial management, our funds, sometimes the money we get from the workplace, reducing the extra expenses and continuing to buy aggressively with that money. There are many reasons why aggressive purchasing levels can be increased. To do this, it is very important for a person to have proper financial management.

The most important thing is that the level of consistency, even if we buy small quantities regularly, will slowly increase. Don't worry too much about strategy, financial management or whatever the concept is because there are many ways for us when we want to try to do our best. In a difficult economic era, everyone must have one way to make changes in life and it must be done consistently, compared to trying many investment methods here and there but there is no growth.

Because we are talking about bitcoin, what needs to be done is preparation towards consistent purchases and this must be applied to long-term investment so that it can grow and develop. I am sure that if this is done there will be real changes regarding finances because I myself have felt the positive impact of investing in bitcoin.

[Barikui1]

However, I've seen some people prefer to use 50% of their income for Bitcoin and the rest as usual, for daily living. I don't think that's a bad idea, as it falls within the techniques many people have used before.

These are the major reason why such people fails in their investment in Bitcoin because they will fall back to their investment at a point by selling prematurely because they didn't invest in Bitcoin from their discretionary income. Take note that any investment in Bitcoin made outside your discretionary income is more of gambling because your are likely investing with a money meant for something else. yes it's good to have the desire and will to invest in Bitcoin, but if you are doing the right thing the wrong way, you may likely not get a good result out of it, since the chances of it failing is way more higher than the chances of it succeeding.

However, for those with less regular monthly income, I've seen people who are more concerned with finding ways to buy Bitcoin and invest. For example, they might work tirelessly at a traditional market in the hope of earning some money so they can buy Bitcoin at night, saving a little for their own living expenses. This is certainly challenging, but I admire their efforts.

It can be very challenging to invest in Bitcoin if after doing all sorts of minimal jobs, you still can't figure out your discretionary income out of it, because anything that makes such people to invest in Bitcoin when they haven't still figure it out, it will be just a matter of time before he sell prematurely just to survive.
Though I admire their zeal, but it would be fruitless if they don't get it right.

[Sim_card]

The example you provided is certainly feasible and quite easy to implement for those who already have the initial intention of investing in Bitcoin using their basic income. However, I've seen some people prefer to use 50% of their income for Bitcoin and the rest as usual, for daily living. I don't think that's a bad idea, as it falls within the techniques many people have used before. So, there's nothing difficult or oppressive about having a basic, consistent income, allowing them to immediately pursue their intention to become a Bitcoin investor.

You are to only invest in bitcoin with your discretionary income so that you don't make the mistake to invest with the money for your basic needs. Having a constant income isn't a guarantee that you will have a discretionary income. I have seen people who have constant income but don't have a discretionary income because their income isn't enough to carter for their needs and monthly expenses.

It's good to have an income that's more than your monthly needs and expenses. This why you need to figure out if you have a discretionary income before you start investing and how much from your discretionary income that will be convenient for you to DCA regularly every week. If you buy bitcoin beyond your discretionary income, you are not investing but gambling.

However, for those with less regular monthly income, I've seen people who are more concerned with finding ways to buy Bitcoin and invest. For example, they might work tirelessly at a traditional market in the hope of earning some money so they can buy Bitcoin at night, saving a little for their own living expenses. This is certainly challenging, but I admire their efforts.

Those who don't have a regular discretionary income can buy bitcoin once in a while when they are able to come up with their discretionary income. Since they know the importance of bitcoin, they can work on their income by getting a second means of job, learn a skill or improve their qualifications so that they income will increase in order for them to be able to get a regular discretionary for them to DCA consistently till they reach their bitcoin target.

[Loyang]

<<<

This actual selling point can be adjusted to the market price so that people have a definite figure each time they set a safe limit. I don't know if everyone understands the margin of safety, but in essence, implementation is not difficult if people are able to implement it correctly. Conversely, regarding the budget limit used for the investment process, it will not affect the conditions of daily life. For example, if someone has a budget of $100, $60 is invested in Bitcoin and the rest can be used for other needs.

The example you provided is certainly feasible and quite easy to implement for those who already have the initial intention of investing in Bitcoin using their basic income. However, I've seen some people prefer to use 50% of their income for Bitcoin and the rest as usual, for daily living. I don't think that's a bad idea, as it falls within the techniques many people have used before. So, there's nothing difficult or oppressive about having a basic, consistent income, allowing them to immediately pursue their intention to become a Bitcoin investor.

However, for those with less regular monthly income, I've seen people who are more concerned with finding ways to buy Bitcoin and invest. For example, they might work tirelessly at a traditional market in the hope of earning some money so they can buy Bitcoin at night, saving a little for their own living expenses. This is certainly challenging, but I admire their efforts.

A person can invest even if he does not have a basic, consistent income. There are also many people who are investing and do not have a stable source of income. For example, they work as daily wage earners. A person needs basic knowledge about Bitcoin, faith in Bitcoin and a source of discretionary income to invest. If a person has these things, then he can invest if he wants. No one needs a stable income or basic income to invest. If he has a source of discretionary income, then he can invest.

A person should buy based on his financial situation. If a person invests 50% of his income, it will never be the right decision. If a person wants to invest 50% of his discretionary income, then he can.

[HajiBagi]

Finding a reasonable balance of investing aggressively without overdoing it takes practice.

I think a good way to measure that is about how you feel.
If you are worried about how much the price goes up or down, problems with sleep etc you are clearly over invested.

You need to invest an amount to keep calm no matter what happens to the price.

I agree with you, one thing we should always remember when buying bitcoin is to know our limit and how capable we are when buying bitcoin. Some people are worried about the market price because of how they trusted in bitcoin without thinking about the market. Bitcoin is not an investment that we can invest in today and start making profit. The reason why some people don't care about how they invest is because they always think about the profit they will make when the price rises.

Many people fail in their bitcoin journey because they lack knowledge and understanding about bitcoin. Even if they do have some understanding, they will try to invest aggressively because of what they will achieve in the end without considering their personal needs. When you invest with the amount you can afford to buy, you will always have peace of mind and be able to hold your bitcoin for a long period of time.

[ancafe]

A person can invest even if he does not have a basic, consistent income. There are also many people who are investing and do not have a stable source of income. For example, they work as daily wage earners. A person needs basic knowledge about Bitcoin, faith in Bitcoin and a source of discretionary income to invest. If a person has these things, then he can invest if he wants. No one needs a stable income or basic income to invest. If he has a source of discretionary income, then he can invest.

A person should buy based on his financial situation. If a person invests 50% of his income, it will never be the right decision. If a person wants to invest 50% of his discretionary income, then he can.

It may not seem like a major issue, but it's much better when someone involved in investing has other sources of income, making it easier for them to allocate a larger portion to Bitcoin investments. A day job won't provide the opportunity for consistent income, as we earn money when we have a job. Conversely, when we're not working, we won't earn any money, which can impact our ability to cover living expenses and even disrupt our investment strategy due to the inherent uncertainty of a day job in generating income.

The appropriate investment amount is a matter for the individual, and there's no harm in investing 50% of your income in Bitcoin. This allows you to live a simple life before achieving financial freedom. A simple life won't kill you, so using that 50% of your money can be more beneficial for investing. Imagine if you did that in 10 or 15 years, how much better your life would undoubtedly be forward after everything goes perfectly.

[Barikui1]

.
The appropriate investment amount is a matter for the individual, and there's no harm in investing 50% of your income in Bitcoin. This allows you to live a simple life before achieving financial freedom. A simple life won't kill you, so using that 50% of your money can be more beneficial for investing. Imagine if you did that in 10 or 15 years, how much better your life would undoubtedly be forward after everything goes perfectly.

I never wanted to say anything but looking at this your highlighted statement, I just think that it's proper to address it.
Investing 50% of your income in Bitcoin is actually not cool because it might weigh down on your ability to take care of yourself and your basic needs, but if you are talking about 50% of your discretionary income, then that's the best possible figure you should be investing from your discretionary income.

Our investment in Bitcoin should be based on our discretionary income, not from our monthly or weekly income because any investment done outside our discretionary income smells trouble, because that's gambling and it will just be a matter of time and you will likely sell it off or part of it just to address what the money used to invest in Bitcoin was meant for, so we should try to get it right by investing from our discretionary income, not from our basic income.

[Loyang]

A person can invest even if he does not have a basic, consistent income. There are also many people who are investing and do not have a stable source of income. For example, they work as daily wage earners. A person needs basic knowledge about Bitcoin, faith in Bitcoin and a source of discretionary income to invest. If a person has these things, then he can invest if he wants. No one needs a stable income or basic income to invest. If he has a source of discretionary income, then he can invest.

A person should buy based on his financial situation. If a person invests 50% of his income, it will never be the right decision. If a person wants to invest 50% of his discretionary income, then he can.

It may not seem like a major issue, but it's much better when someone involved in investing has other sources of income, making it easier for them to allocate a larger portion to Bitcoin investments. A day job won't provide the opportunity for consistent income, as we earn money when we have a job. Conversely, when we're not working, we won't earn any money, which can impact our ability to cover living expenses and even disrupt our investment strategy due to the inherent uncertainty of a day job in generating income.

Yes sir, you are right. If a person has a separate income in addition to one income, he may be able to earn a good amount of money. And he can continue to buy continuously with more money. But a person needs to work extra on his physical condition. Because if his physical condition is bad, he may fall ill while working extra, due to which his medical expenses will increase. Just like you said, if a person works during the day and sells a meal at night, then some amount of money will be earned from the sale of the meal.

The appropriate investment amount is a matter for the individual, and there's no harm in investing 50% of your income in Bitcoin. This allows you to live a simple life before achieving financial freedom. A simple life won't kill you, so using that 50% of your money can be more beneficial for investing. Imagine if you did that in 10 or 15 years, how much better your life would undoubtedly be forward after everything goes perfectly.

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

[Finebone]

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

[JayJuanGee]

.
The appropriate investment amount is a matter for the individual, and there's no harm in investing 50% of your income in Bitcoin. This allows you to live a simple life before achieving financial freedom. A simple life won't kill you, so using that 50% of your money can be more beneficial for investing. Imagine if you did that in 10 or 15 years, how much better your life would undoubtedly be forward after everything goes perfectly.

I never wanted to say anything but looking at this your highlighted statement, I just think that it's proper to address it.
Investing 50% of your income in Bitcoin is actually not cool because it might weigh down on your ability to take care of yourself and your basic needs, but if you are talking about 50% of your discretionary income, then that's the best possible figure you should be investing from your discretionary income.

Our investment in Bitcoin should be based on our discretionary income, not from our monthly or weekly income because any investment done outside our discretionary income smells trouble, because that's gambling and it will just be a matter of time and you will likely sell it off or part of it just to address what the money used to invest in Bitcoin was meant for, so we should try to get it right by investing from our discretionary income, not from our basic income.

I would think that the suggestion coming from ancafe involves ONLY investing from discretionary income, and surely if anyone is able to invest 50% of their income into bitcoin (and that is ONLY from discretionary income), then they are going to make a lot of progress building up their bitcoin holdings, since they would end up investing 100% of their income every two years, so that is a very good way to front load their investment into bitcoin, even though surely there could be some concerns about what the bitcoin price is going to do, yet many times, if we consider that we are steadily investing into bitcoin, then after 4 years, our average cost per BTC should be right around the 200-WMA, and so far in bitcoin's price history, bitcoin has spent that vast majority of it's time at least 30% higher than the 200-WMA.   Right now, as I type this post, bitcoin is dipping into the $108k's yet it is still slightly more than 100% (double) the 200WMA, which is currently at slightly below $54k.

Of course, bitcoin future prices are not guaranteed, even though there aren't any real reasons to expect that bitcoin's investment thesis is becoming any weaker with the passage of time, even though attacks upon it are ongoing, including attacks on self-custody and attacks on using it for private transactions, which is not easy to stop without really oppressing people, which might cause backlashes that are more costly than just allowing bitcoin to continue to exist.. including that bitcoin is a world-wide phenomena, and it is not easy to coordinate governments on a world-wide basis, especially involving something like money.

We have to keep in mind that an overwhelming majority of normies have difficulties saving/investing up to 10% of their income, so anyone who is able to invest 50% of his income has very high discretionary income and/or has been able to structure his income versus expenses in such a way that he is fortunate to be able to save/invest that much on an ongoing basis.

I frequently suggest that anyone who is able to invest up to a year's income into bitcoin within 4-6 years, may well end up putting himself in a very good place in which he might be able to downwardly adjust the amount that he is putting into bitcoin, yet of course, my own formula suggests that a guy only gets to his threshold fuck you status when his bitcoin's value at the 200-WMA level is worth 10x his targeted income level, and so frequently I use $80k annual income as a targeted entry-level fuck you status, even though we know that around the world, the amount that a guy might feel that he needs to live comfortably is going to differ and also depends on his expectations, too.. including if he might want to upgrade his standard of living.. yet on the other hand, guys might recognize that they can live off of less than their current income as long as they no longer have to work.  

Right now I consider the default entry level fuck you status of being able to live off of $80k per year perpetually (and with a 7% increase in the dollar value each year) to require a minimum of 14.8446 BTC. Since the amount of BTC required for that same threshold amount of income of $80k per year is continuing to go down, it seems to me that by the end of 2029 (4 years from now), it is ONLY going to take somewhere between 3.8 BTC to 4.6 BTC in order to sustain that same level of withdrawal rate.

By the way, prior to March 2020, I had been recommending that entry-level fuck you status was achieved at an income of $40k per year; however the events around the crashes and the money printing and the other supply chain and governmental shenanigans at and around that time, caused me to conclude that there was a need to double the default entry-level fuck you status, even though surely I understand, recognize and appreciate that some guys can still feel quite comfortable with a passive income of $40k per year - yet I am trying to appeal to a bit of a higher standard of living, even though surely there are a lot of folks who consider $80k per year to be near poverty level... so there are going to still be differing perspectives in regards to how much is needed and why.. and surely it is different to be a single person versus having a family of 4 to support.  

Another thing is that on March 1, 2020, based no my same formula, and using ONLY a $40k per year income, it would have had taken right around 73.66 BTC to be able to meet that threshold level of income of a sustainable $40k per year, which also factually demonstrates how much with the passage of time, the quantity of BTC required to get to fuck you status continues to go down which also justifies front-loading our investment into bitcoin in order to strive towards stacking earlier rather than later, so that even newer folks into bitcoin who are ONLY stacking bitcoin from their income and they do not have other investments and/or savings, they are still able to make extensive progress in their stacking of bitcoin.   I tend to recommend that beginners aim to get somewhere in the ballpark of 5% to 25% of their income invested into bitcoin, yet if they are ready, willing and able to invest at higher rates and still be within their discretionary income and also retain some back up funds, then they would be able to make faster progress in building up their bitcoin stash, as ancafe had mentioned to be such an ambitious goal that some guys might be able to achieve...depending on their circumstances and their likelihood of having (or creating situations of having) high levels of discretionary income.

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

You might be correct that ancafe is being reckless, yet it seems to me that he was already attempting to account for his expenses (he said that right within his post, to live a reduced expenses lifestyle), so based on his representations, there should be a bit of an assumption that he would be attempting to be totally investing into bitcoin from his discretionary income and a bit of an assumption that he is able to get his bitcoin investment to be 50% of his income without investing beyond the amount of his discretionary income.  

Look at his post.  He says cutting his expenses and living at a low standard of living to be able to achieve an ability to invest 50% of his income into bitcoin.  Sure, he might be being unrealistic and even wrong in his ability to ongoingly achieve an investment into bitcoin at 50% of his income, yet we cannot patronizingly presume that ancafe is a not adequately accounting for his expenses.. even though I agree with everyone in terms of the need to make sure that investing into bitcoin is not including money that is needed for expenses and even attempting to account for accidents in calculation, since it would be better to invest a little bit less aggressively into bitcoin rather than having to end up selling some bitcoin that is not of a time of our choosing based on our being overly aggressive in the deployment of our bitcoin investment levels..   So in that regard, if ancafe were to be making mistakes and going overboard on the level of his aggressiveness,  then he might be interfering with his progress and his abilities to build up his bitcoin stack as solidly as he would be able to do if he were to not go beyond his actual financial abilities.

[ancafe]

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

You might be correct that ancafe is being reckless, yet it seems to me that he was already attempting to account for his expenses (he said that right within his post, to live a reduced expenses lifestyle), so based on his representations, there should be a bit of an assumption that he would be attempting to be totally investing into bitcoin from his discretionary income and a bit of an assumption that he is able to get his bitcoin investment to be 50% of his income without investing beyond the amount of his discretionary income.  

Look at his post.  He says cutting his expenses and living at a low standard of living to be able to achieve an ability to invest 50% of his income into bitcoin.  Sure, he might be being unrealistic and even wrong in his ability to ongoingly achieve an investment into bitcoin at 50% of his income, yet we cannot patronizingly presume that ancafe is a not adequately accounting for his expenses.. even though I agree with everyone in terms of the need to make sure that investing into bitcoin is not including money that is needed for expenses and even attempting to account for accidents in calculation, since it would be better to invest a little bit less aggressively into bitcoin rather than having to end up selling some bitcoin that is not of a time of our choosing based on our being overly aggressive in the deployment of our bitcoin investment levels..   So in that regard, if ancafe were to be making mistakes and going overboard on the level of his aggressiveness,  then he might be interfering with his progress and his abilities to build up his bitcoin stack as solidly as he would be able to do if he were to not go beyond his actual financial abilities.

That's actually what I do because in my country, the cost of living is not that high, and I can even grow vegetables in my backyard to make ends meet. If I wanted, I could even take other approaches like raising chickens and fish because there's still a lot of vacant land that can be utilized. What motivated me to invest 50% of my discretionary income in Bitcoin is nothing more than the opportunity I see in the next five to ten years, which is that Bitcoin still has quite a lot of potential, although we never know what the future holds.

I manage finances very selectively—at least that's what I do. For the past few years, I haven't spent money on unnecessary or even unproductive things, allowing me to use the remaining 50% of my funds for living expenses. If others don't believe me, that's another matter, as I'm not trying to convince anyone, but if you want to see a change in life, it might be worth a try, and you'll (loyang/finebone) ultimately experience the same benefits.

[iamsange]

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Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

So, what do you think is a good practice in this regard? For some people, allocating 50% of their funds to Bitcoin is considered extraordinary, as it's based on their discretionary income. However, those who can afford to invest 95% of their funds in Bitcoin are usually those who have no responsibilities whatsoever for their living expenses or even their own household needs, perhaps because their parents are still supporting them. Yes, it's not a problem in terms of the path, but it won't be suitable for people who already have to live independently and have dependents like children and a spouse. Therefore, investing 50% of a person's total financial capacity is actually quite reasonable and appropriate for investors aiming to buy Bitcoin regularly over the long term.

[barisbilgili]

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Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

So, what do you think is a good practice in this regard? For some people, allocating 50% of their funds to Bitcoin is considered extraordinary, as it's based on their discretionary income. However, those who can afford to invest 95% of their funds in Bitcoin are usually those who have no responsibilities whatsoever for their living expenses or even their own household needs, perhaps because their parents are still supporting them. Yes, it's not a problem in terms of the path, but it won't be suitable for people who already have to live independently and have dependents like children and a spouse. Therefore, investing 50% of a person's total financial capacity is actually quite reasonable and appropriate for investors aiming to buy Bitcoin regularly over the long term.

Investing 50% of your total income without considering basic needs, dependents, or an emergency fund is extremely risky and can even jeopardize your investment due to shortages or limitations, potentially leading to failure even after achieving your goals.

However, with the remaining amount after meeting all your needs, I believe Bitcoin is worth investing in. It's a promising long-term investment, so there's a strong incentive to invest.
In fact, I believe that someone with strong confidence in this investment should make sacrifices to invest more, regardless of the method. The best approach is to seek additional income to further invest.

[Gost ms]

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

You might be correct that ancafe is being reckless, yet it seems to me that he was already attempting to account for his expenses (he said that right within his post, to live a reduced expenses lifestyle), so based on his representations, there should be a bit of an assumption that he would be attempting to be totally investing into bitcoin from his discretionary income and a bit of an assumption that he is able to get his bitcoin investment to be 50% of his income without investing beyond the amount of his discretionary income.  

Look at his post.  He says cutting his expenses and living at a low standard of living to be able to achieve an ability to invest 50% of his income into bitcoin.  Sure, he might be being unrealistic and even wrong in his ability to ongoingly achieve an investment into bitcoin at 50% of his income, yet we cannot patronizingly presume that ancafe is a not adequately accounting for his expenses.. even though I agree with everyone in terms of the need to make sure that investing into bitcoin is not including money that is needed for expenses and even attempting to account for accidents in calculation, since it would be better to invest a little bit less aggressively into bitcoin rather than having to end up selling some bitcoin that is not of a time of our choosing based on our being overly aggressive in the deployment of our bitcoin investment levels..   So in that regard, if ancafe were to be making mistakes and going overboard on the level of his aggressiveness,  then he might be interfering with his progress and his abilities to build up his bitcoin stack as solidly as he would be able to do if he were to not go beyond his actual financial abilities.

That's actually what I do because in my country, the cost of living is not that high, and I can even grow vegetables in my backyard to make ends meet. If I wanted, I could even take other approaches like raising chickens and fish because there's still a lot of vacant land that can be utilized. What motivated me to invest 50% of my discretionary income in Bitcoin is nothing more than the opportunity I see in the next five to ten years, which is that Bitcoin still has quite a lot of potential, although we never know what the future holds.

I manage finances very selectively—at least that's what I do. For the past few years, I haven't spent money on unnecessary or even unproductive things, allowing me to use the remaining 50% of my funds for living expenses. If others don't believe me, that's another matter, as I'm not trying to convince anyone, but if you want to see a change in life, it might be worth a try, and you'll (loyang/finebone) ultimately experience the same benefits.

Not everyone's life is the same. As you explained, if you had included this in your discretionary income, then perhaps everyone would have understood this. You mentioned investing 50% of your income, which is probably what everyone thought. What is meant by investing with discretionary income is that discretionary income is money that you don't need or that you won't lose much if you lose it. When you talk about 50% of your income, your expenses may be higher and then you may not take money from your emergency fund or you may take a loan from someone. Doing so will never be the right decision for an investor. If you invest with your discretionary income, it will be better for you.

[Finebone]

Not everyone's life is the same. As you explained, if you had included this in your discretionary income, then perhaps everyone would have understood this. You mentioned investing 50% of your income, which is probably what everyone thought. What is meant by investing with discretionary income is that discretionary income is money that you don't need or that you won't lose much if you lose it. When you talk about 50% of your income, your expenses may be higher and then you may not take money from your emergency fund or you may take a loan from someone. Doing so will never be the right decision for an investor. If you invest with your discretionary income, it will be better for you.

I think that he should just be specific when talking about income, because him saying that he will invest 50% of his income, we are definitely going to take it that he meant his net income, not his discretionary income, and any investment made outside your discretionary income can be very risky to your investment even though you have an emergency funds in place or not.
But if he is talking about his discretionary income, then it's very good because he can invest comfortably without any troubles as long as he does not over do it to the extent of going beyond his discretionary income.

Additionally, because you are investing in bitcoin doesn't mean that you might start living like a peasant, if you can increase your source of discretionary income that's cool because it's help in increasing your discretionary income to invest with, but excess of depriving yourself of good things of life because you are investing in bitcoin makes no sense to me, because you just have to live today first before talking of tomorrow.

[Qhunman]

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

What people should be using to invest in Bitcoin is a Discretional income and not money meant for their basic needs. I wouldn't say he is wrong investing 50% of his income in Bitcoin if he is financially capable of handling it but it should be 50% of his Discretional income. It is  a problem if he is investing more than what he can to lose because he will face problems taken care of his basic needs and maintaining that financial vigor for the long term.  Since his investment is for the long term, consistency and sustainability should be his primary focus while he aim for his main goal of reaching his targets. Investing directly from his Discretional income no matter the amount should be less of a stress because it is an amount he can using to Buy Bitcoin consistently until reaching his over accumulating targets. 

[Yeesha]

It is good not to create unrealistic expectations and also to keep your expectations low, yet at the same time, it is good to have plans for a variety of scenarios, including extreme upside scenarios.  The more prepared you are for a variety of scenarios both financially and psychologically, then the less likely you are to panic and the more likely that you already have a tentative plan in place that will help you to potentially stay somewhat on course of your plan, even though sometimes it can be a bit stressful and nerve racking to figure out what to do in the event that bitcoin prices move a lot in one direction or another. 

[/quote]

Things don't always work out as we wish and we will end up being disappointed if our wish doesn't becomes a reality. When reality doesn't meet our requirements or expectations, it can or may definitely affect our well-being or mental health by leading to or causing stress, depression, emotional instability, anxiety and frustration. Keeping low expectations and ignoring or avoid creating unrealistic expectations can helps an individuals to maintain and develop a more positive mindset, and it will also foster contentment and gratitude for what they have.

As an individual if focus on what we can definitely control rather than wasting time creating unrealistic expectations, because by focusing on what we can control and accepting what we can't, we will have the ability to build resilience and confidence in making that particular thing more greater and it will foster our success. This kind of mindset will allows you to appreciate the present moment, and we will also find joy in everyday experiences and navigate life's challenges with greater easy and flexibility. And also, creating a realistic goals and celebrating every small achievements can also contribute to increased in self development, self awareness, self confidence and overall well being of an individual.

[barisbilgili]

If a person invests 50% of his income without proper financial management, then it can lead to bad times for him and his portfolio. For example, if a person spends more than 50% of his money on his family expenses, personal expenses, and on top of all these expenses, if he spends more than 50%, then where will he get the rest of the money? Then if his investment keeps falling, then he will have to sell his holdings at a loss. So I think it would be better for a person to invest 50% of his discretionary income or more.

Using even 95% to buy Bitcoin is never a bad idea entirely if it's from your discretionary income, even though it might make your investment looks stressful, but investing as low as 10% of money that is not your discretionary income will brings nothing but troubles to your Bitcoin investment.
So if he is saying that investing 50% of his income in Bitcoin is good, then he is wrong because it will bring nothing but problem to his investment since it's not his discretionary income he is investing with.
So it's not a good practice if you ask me.

What people should be using to invest in Bitcoin is a Discretional income and not money meant for their basic needs. I wouldn't say he is wrong investing 50% of his income in Bitcoin if he is financially capable of handling it but it should be 50% of his Discretional income. It is  a problem if he is investing more than what he can to lose because he will face problems taken care of his basic needs and maintaining that financial vigor for the long term.  Since his investment is for the long term, consistency and sustainability should be his primary focus while he aim for his main goal of reaching his targets. Investing directly from his Discretional income no matter the amount should be less of a stress because it is an amount he can using to Buy Bitcoin consistently until reaching his over accumulating targets. 

If we use this method, the investment we have planned for the future should not be disturbed, we only need to be consistent in accumulating Bitcoin with discretionary income, which means that after fulfilling all our needs in life, we may only need to set aside a little for other unexpected needs, so in my opinion, what is worthy of investing with discretionary income is 90% and I am sure that everyone who has understood and is also confident in Bitcoin investment will continue to be motivated to do so because this investment is intended for the future, so there is the possibility of large profits that we can get and that will encourage greater interest.