Buying bitcoin on a regular basis is a smart move and with the DCA method it has been more easier for us to accumulate bitcoin at any given price without feeling remorse about it or maybe doubting if one truly bought at the wrong timing whereas there isn’t wrong timing in accumulation of bitcoin since we are using our DCA method.
It so important and helpful that you did make this clarity so that many newbie that are coming into bitcoin investing will understand that investing in bitcoin doesn’t guarantee high returns and also it does means we are financially free because all that are just a myth so let get this straight. Many newbie come into bitcoin investment for bigger returns and such mindset isn’t a smart one to put into consideration at all, because we might end up getting disappointed at the long run because nothing is guaranteed.
As long as you're still using the DCA method I believe this is the right path for Bitcoin accumulation. Many people are still making purchases using the strategy you outlined eliminating any regrets or doubts about accumulating Bitcoin as they're essentially doing so the right way.
But as you stated why would anyone still consider investing in Bitcoin a guarantee? So my question is investing in Bitcoin doesn't guarantee future profits whether for beginners or even for those who have been investing in Bitcoin for a long time. Even though the mindset of those who have been investing in Bitcoin for a long time is certainly different from the thoughts of beginners they still feel confident that investing in Bitcoin will bring them profits meaning they still want to hope for profits from what they invest by accumulating Bitcoin in the long term even though in terms of consequences they also realize that it is not entirely possible to invest in Bitcoin because the guarantee is the same as what we discussed only maybe they only hold on to their respective beliefs because they have done it so holding back on investing is one way that must be done with the aim of not doing it again for the continuation.
As long as each of us has errored on the side of investing into bitcoin rather than trying to trade it or gravitating into shitcoins (which is largely the same as trying to trade), then the emphasis would have had been to ongoingly buy bitcoin and perhaps when running out of money to just HODL through those periods (without selling much if any BTC), and so then the tendency would be that the longer that a person had been in bitcoin then the more likely his average cost per BTC would have had been lower, even if he might have had some bitcoin buys during periods that the BTC prices were relatively higher in that period.
So feelings of being in comfort and feelings of having a great enough "profits" cushion would likely be greater the longer that a person is in, and the feelings of comfort would likely be different for guys who have average costs per BTC that are below $500 per coin, versus guys who have average costs per coin below $2k versus guys who have average costs per coin below $25k, versus guys who have average costs per coin below $60k, versus guys who might have higher costs per coin.. which surely there may well be challenges for guys who have less than 4 years in bitcoin to have average cost per coin significantly below $60k per coin.. so then it can take time to both ongoingly build up the bitcoin holdings and at the same time start to feel considerable comfort that the overall bitcoin holdings is in a good place in terms of both how much had been put into it and how much the holdings are worth.
By the way, a person who entered bitcoin around 4 years ago could well reasonably have average BTC costs of anywhere between lower $20ks to $110k-ish... yet the more likely average would be somewhere in the middle, especially if we are going to presume that there had been some form of ongoing buying rather than lump summing and sitting on their hands for most of the 4 years. Even though there are lump summers who exist in the real world, I tend to presume that the more common approach of a "more serious" investor is to ongoingly buy at various points along the way, and even in logistical reasons, it can become quite challenging for most normal people to lump sum into any investment, even if they do have the capital available to invest in that kind of a way, so in that regard, I tend to consider the lump summer to be more of an exception rather than a rule.. even though sure, there are examples of such lump summers that do also actually exist in the real world.
And, don't get me wrong. I tend to not be overly concerned about level of "paper profits" since one of the more important measures in the longer run is likely going to revolve around how many bitcoin a guy had been able to accumulate rather than the extent to which his BTC holdings happen to be in profits or not... even though we might not really want to start to deploy any of the forms of sustainable withdrawal - either price-based or time-based in the event that the BTC holdings are not in a sufficient level of profits.
There maybe a bit of a presumption that by the time that bitcoin had been being accumulated for more than 4 years there are decent chances that the bitcoin holdings are going to be in profits, and surely the mere fact that they are in profits might not justify any meaningful level of withdrawal (or even sustainable withdrawal) unless a couple of cycles had passed rather than just having had only gone through 1 cycle.. which likely brings me back to some of my own hesitancies in regards to guys potentially gravitating into trading rather than investing.. which tends to involve their ending up selling too much bitcoin too soon under circumstances that neither age nor health considerations factor into their bitcoin holdings management.
success is not a guarantee in bitcoin investment. realistically in as much as bitcoin have the potential of generating high returns theres also a potential of losing the investment even in the long run because of its high volatility and is very speculative which means no one can predict what the price will be exactly so you saying that investing with the dca method you will definitely be successful could be misleading in the sense that it is not a guaranteed. we need to be well aware of the potentials of bitcoin investment.The dca is just one of the purchasing strategy in bitcoin investment as what the dca does is to mitigate or help us in reducing the impact of the risk of loss associated with bitcoins high volatility. even though some investors achieved some level of success in bitcoin investment, but it is not a guarantee as you dont judge it with past performance as past performance does not also guarantee future performance.
Although there are no guarantees as investors we must be sure that everything we do has a benchmark between profit and loss and risk. All types of activities will always involve both profit and risk which we must be prepared to accept.
Moreover what many people do when investing in Bitcoin will certainly build confidence in accepting the reality of what will happen whether it's profit or risk. Profits usually come after a long-term investment but the long-term guarantee isn't immediate it's a process that can take a while. Therefore there's high hope but it must be approached wisely regarding the long-term horizon. Avoid misunderstandings. Success isn't guaranteed in investing but there are ways to achieve that success one of which is to continue investing until the desired level is reached in Bitcoin.
You have a strange way of expressing these ideas of profits and/or risk and how they might play out over time.
It is likely that with bitcoin investing, we may well like to figure out ways that we can invest in bitcoin and to attempt to control the aspects that we are able to control related to our own cashflow management practices and also in terms of how much of our discretionary income that we choose to allocate into bitcoin versus putting such funds in savings and/or discretionary consumption.
Of course, we can also figure out ways to engage in practices to protect our coins too, and likely either completely avoiding trading and/or shitcoining or at least minimizing such activities if we have troubles controlling our inclinations in that direction.
So yeah, if we also recognize that bitcoin is an asymmetric bet to the upside in which the most that we could lose is 100%, we may well be choosing our level of investment into bitcoin in terms of how we might calculate the probabilities of upside versus the probabilities of downside.
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Yes you are absolutely right that I have introduced myself as a crypto trader on my own local board. Look I have some trading experience so I definitely understand the difference between trading and investing, in fact if we consider the measure of success in the Bitcoin world then maybe it would be BTC investment Trading can never be the measure of success because there is a lot of risk research money and time wasted, and if someone is investing in shitcoin then he may be shooting himself in the foot because there is no guarantee that he will come back from there with a hand full of money.
So leaving everything behind I have learned to understand that Bitcoin investment is an easy move where there is no pressure especially to meet its compensation in a short time. So like you we all should think that investing should be considered as a way to save extra time, energy and value aside.
It surely could be the case that you understand the difference between trading and investing, to the extent that any of us might even agree upon definitions, and surely with my own view of investing into bitcoin, there would be goals to be ongoingly building of the bitcoin holdings through ongoing buying techniques.. so then investing into bitcoin becomes mostly a lifetime commitment in which there would be targets for sustainable withdrawal that would be price based and/or time-based, yet would ONLY go into effect after some form of overaccumulation had been reached.
Of course, guys could end up doing whatever they like and even abandoning some of their original bitcoin investment plans, since we all retain our abilities to choose how we are going to build and/or manage our bitcoin holdings..
In any event, it seems to me that investing takes time to play out, and surely to test the extent to which any of us who might be claiming to be "investing" in bitcoin are able to continue to build their bitcoin holdings (or perhaps to at least hold onto them without selling much if any) for a whole cycle or more...
In other words, it seems to me that guys will have much more credibility in their having claims to both understanding and practicing investing rather than trading if they can at least get through a whole 4 year cycle and to have had mostly built up their bitcoin holdings during that time or at least mostly not significantly depleted their bitcoin holdings during that time. In that regard, actions speak louder than words.
A low-income person can create an opportunity to invest in Bitcoin if he has the ability to take risks. Considering the current price of Bitcoin and the ability to estimate the price of Bitcoin in the future and the difference between the current price of Bitcoin from the low price of Bitcoin in the past, a person who can understand the difference will definitely take risks for Bitcoin investment. Every person has the ability to take risks, but those who follow the DCA method in Bitcoin in the long term will definitely be successful.
Sorry but you can’t just make straight up statements about DCA strategy and bitcoin investment with so much confidence like this. Bitcoin investment doesn’t guarantee success or higher returns at the long run no matter the strategy we might use, returns are not guaranteed. And you making the statement of DCA strategy would definitely bring success in the long run that not on to you to decide because we know the market is a volatile place and we can’t predict the pair movement so I don’t agree with such.
With such confidence some new investors might take such statements as a motive to invest in bitcoin because you did mention it successfully so long one uses DCA method and that just a bad approach. Success isn’t guaranteed and let not approach bitcoin investment in such manner.
There are possibilities of making progress during the journey and the chances would be so high when we use DCA method but the outcome isn’t something we can assume or make predictions about. But probabilities of success is higher than that of other methods though but success isn’t guaranteed.
I think that we should be able to confidently proclaim that following DCA provides any of us to be able to tailorize the level of our investment into bitcoin in terms of our own discretionary income and our chosen level of aggressiveness. In that regard, we can chose our level of aggressiveness and perhaps ongoingly be assure to be increasing our bitcoin stash, so long as we otherwise managing our cashflows in strong ways and that we are taking adequate measures to safeguard our bitcoin holdings so that we don't end up losing what we had built.
Otherwise, you are correct Big Dirams, we cannot be certain that our investment into bitcoin will result in profits even if we might have had taken measures to follow reasonably strong practices within the areas that we could determine and control.
success is not a guarantee in bitcoin investment. realistically in as much as bitcoin have the potential of generating high returns theres also a potential of losing the investment even in the long run because of its high volatility and is very speculative which means no one can predict what the price will be exactly so you saying that investing with the dca method you will definitely be successful could be misleading in the sense that it is not a guaranteed. we need to be well aware of the potentials of bitcoin investment.The dca is just one of the purchasing strategy in bitcoin investment as what the dca does is to mitigate or help us in reducing the impact of the risk of loss associated with bitcoins high volatility. even though some investors achieved some level of success in bitcoin investment, but it is not a guarantee as you dont judge it with past performance as past performance does not also guarantee future performance.
It is a saying that nothing is guaranteed in Bitcoin and the reason is price fluctuations as a result of volatilty but I won't want to duel on that phrase all the time, Bitcoin has been in a existence for some years now and the long-term effect has always been their if anyone try to sound very convinced that the his future and that of other bitcon investors that has been investing will be rewarded by this same investment then so be it, such persons shouldn't be discouraged, after all they have their reasons for taking such stands, how do we know a good investment? Is it not an investment that has been tested and trusted, Bitcoin has given us reason to believe that it is actaully an investment that has a long-term prospect but we should not forget to invest with our discreationary income that's very important.
We might want to consider that potentially one of the most guaranteed aspects of bitcoin is that is inevitably (or damned close to inevitably) remain volatile, and we cannot really know which direction, especially in the short term.
At the same time, we can still retain a theory that we also believe that it is quite likely that bitcoin's price curve in the long term is going to tend to trend upwardly, and we are not sure in regards to how much, even though we might speculate that we believe that bitcoin's upward price curve has good odds of being one of the best if not the best place to reasonably put time, energy and value... even though we are not guaranteed for it to be the case, so we have to make choices in regards to how much of our time, energy and value that we end up putting into bitcoin as compared with other places that we might choose to put our time, energy and value. Choices (and actions) have consequences, especially over 4-10 years or longer.
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Investing with the mindset that profit will definitely come is what's wrong, it's better for investors to know essentially newbies that success isn't guaranteed, bitcoin has performed well over the past 15 years and we are hoping that it's keeps performing well in the future but that's still doesn't mean we should ignore the fact that anything can happen and bitcoin can possibly from tomorrow not appreciate in value anymore, it could end enter a downtrend and start deprecating in value, hopefully this doesn't happen but it's better to bear in mind that it is a possibility, that's why we invest with our discretionary income so that if for any reason bitcoin underperforms we won't lose everything we have to it.
Surely negative bitcoin scenarios exist so we don't want to assign them zero value, yet we also don't want to dwell on such negative scenarios, otherwise we might sound like we either do not understand bitcoin or that we are overly assigning unlikely scenarios to our presentation of bitcoin, which seems to be what trolls, fence sitters, shitcoin pumpers and/or bitcoin naysayers like to focus upon.
I believe Bitcoin tech has nothing to do with Bitcoin investment (correct me if I'm wrong). My honest reason for saying this is that I believe those techs can not say the actual amount it will be in the future that's why we can only predict because we are not sure about it, likewise those Bitcoin techs.
You are not wrong,
bitcoin technology has nothing to do with bitcoin investment but I just said that those who have an idea about bitcoin technology do not have any negative impact because we all know that the job of bitcoin technology is to keep the system running, and the job of investment is to make a profit. Having faith in the technology does not mean that the investment will be profitable there is no guarantee.
The technology of bitcoin fits into how bitcoin became valuable as a paradigm shifting technology that allows that digital communication and storage of both information and value (meaning it cannot be duplicated even though it is in digital form). Even though there might not be any needs to understand how the technology works, the technology is part of the essential building blocks that contributes towards bitcoin having meaningful and/or society-wide value for bitcoin holders and for society as a whole, even if some folks are not holding bitcoin or otherwise using it..
