JJG’s Outline of Bitcoin Investment Ideas

[AYOBA]

Bitcoin does not need to do much for people to believe in its future value because the history of bitcoin has said it all. No one can predict what the Bitcoin will look like in the next few years, but if you look at the history of the Bitcoin, you will understand that the future has more to offer than what we are seeing now and even in the past. Long term investors don’t not need much explanation because look at where we are today, Bitcoin is trading around $75k.

I agree with points nobody can get the right predictions of how the Bitcoin price will goes in next fews years we all hope that the Bitcoin can do beyond our expectations. And what’s we should count the Bitcoin has our first investment, there’s positive signs that the Bitcoin will be a great investment in the future, as we can even those that are not yet invest are now rushing to purchase the Bitcoin so that they won’t be regret regrets in future.

Are you part of nonbelievers or believers in Bitcoin? Because if long term investment does not guarantee success, then do you mean people should use their energy and effort to do trading? Everyone that is into Bitcoin today understands that it involves risks and profits is not guaranteed. But due to its history, we believe it will perform better than this in years to come.

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

[Tongley]

I totally understand what you are saying, if someone had bought bitcoin when the price was at $20k and they are still holding it at a price of $70k,  then they have definitely made a significant return. But I still think that we should still be cautious of calling this as “compounding.”  As the market price of the Bitcoin rises, the value of the Bitcoin rises as well, and this is simply because Bitcoin doesn’t generate a regular return that automatically grows over time like compound interest.

If someone invested in Bitcoin when the price was around $20k and the price is currently at $70k plus something now, that doesn't mean they have made a significant profit because what you should consider is what they invested ( the amount of money they invested) because you can not invest $20 to $50 in Bitcoin when the price was $20k and be talking about significant profit because the price of Bitcoin surge to $70k. The outcome will be very small compared to someone that invested some thousands of dollars so it is not just investing but rather the quantity.

And that is exactly why continuous investment should be done here, in fact, if people invest a lot of money at once, they can easily panic, and if they buy a very small amount, their success will not be significant, but instead of all this, if DCA is done continuously with a sum of money of your own ability, then over time your small investment may become larger than you think without your knowledge. Here you do not have to invest a large amount of money at once, due to which there is no possibility of excessive panic here, and therefore it is important to invest through DCA. If the investment is managed through this strategy for a long time, it can create a significant portfolio, and as a result, your success rate in the long term can also be significant.

The amount of investment does not determine whether a person will panic or not. Panic depends on whether a person is investing the necessary amount of money or not and whether he has been able to build trust in Bitcoin or not. Because when a person invests the necessary amount, he will definitely panic during the fall, but if he does not invest the necessary amount and invests according to his ability to lose, he will not panic during the fall and will be able to hold on to his holdings.

Trust is very important, if we look at ourselves, we will understand. We do not keep our belongings with those people in whom we do not have any trust, in the same way if we do not have trust in Bitcoin, we will never be able to control ourselves during the fall.

[Homemade-IQ]

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

This is misleading buddy and I am really surprised that you are saying this. How does not believing in bitcoin being great in the future gets to do with believing in yourself?
I am really surprised that you are saying this because Bitcoin being successful in the future is not a guarantee as you are saying, we are only investing in it because of it history and the potential it still have to grow further in the future, so saying that Bitcoin investment is guaranteed to be successful is just like misleading others because nothing Is guaranteed in this world of uncertainty.

[pusaka]

But let's put quantity aside, because everyone has different abilities. And actually we have to see how much profit we get, maybe for people who have thousands of dollars the amount of $100 is a small nominal, but we can not consider it small because for some who are not good financially then it remains a large nominal. It is even wiser if we look at what percentage of profits are generated.

If we make people who have tens or even hundreds of thousands of dollars obviously $50 , $100 may be very small. But I think the comparison is not wise at all because as I said before that everyone has different financial capabilities. And if the benchmark is that, then it can make people who want to invest in a limited nominal discourage their intentions.

High income earners have the advantage of investing more but it doesn't mean that people who put something smaller are wasting their time, what matters is how longer they hold, someone can invest with 10k and hold for four years while another person can consistently invest 1k for same four years and make something meaningful if it's held longer.

 So quantity doesn't matter in a long term investment although it's an advantage but everyone should invest according to their financial capacity, what matters for small scale investors especially is consistency and the ability to hold longer.

That's what I mean, if we were talking nominally then we would say the rich are getting richer, and we wouldn't argue that. But if we talk about the benefits, obviously all who can invest in a long period of time will feel the benefits. What I do is so that people can be more confident even with the money set aside every month, then it can produce benefits if we can wait patiently and with the application of good management.

Because if we always talk about quantity and we always compare with the rich, then it is very clear that the benefits obtained are not comparable because in capital, the difference is clearly visible.

[Dxdiax26]

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

However, this is currently rare, as you say. I think everyone who has invested in Bitcoin, in every city, is certain and confident that Bitcoin is one of the most valuable assets for the future. Anyone who invests now will certainly have the same amount of assets in the next few years as we do now.

So, I don't disagree with what you say, but it's just like today, no one distrusts the activities of individuals who are currently busy making purchases using the DCA strategy with the goal of continuously increasing their assets for the future.

[alankasman]

I don’t think that Bitcoin needs to pay any interests in order for a person to potentially achieve a compounding effect over a long period of time.

If it happens that the asset keeps appreciating and the investor continues to accumulate, the gains that was on the earlier accumulation will become part of larger base that can appreciate further; I wouldn’t say that is compound interest in a technical sense, but the end result can still be powerful.

So, what I need to ask is, has Bitcoin ever, as you say, paid interest to those who compound their holdings over a long period of time?

If you've ever experienced something like what you've described, perhaps many of us continue to make purchases with the goal of forcing ourselves to multiply the value we'll receive upon completion, especially if the purpose of the purchase is solely for long-term investment.
And I don't think Bitcoin rewards those who make frequent purchases. Even if it did, I'd understand that the decision they made would certainly multiply the profits they'd receive once the investment period is reached.

[Fash33]

There are not multiple strategies that are relevant in this thread, since we are talking about my investment ideas in this thread.

If a guy is still accumulating bitcoin, then there are three ways to buy bitcoin 1) lump sum, 2) DCA and/or 3) buying on dips that might not happen.
If you think that there are other strategies that are relevant, then you need to present them and describe them in terms of my own various ideas about strategies that are fairly limited, especially for guys who are investing in bitcoin and in their early years of building their bitcoin holdings.

I have been reading alot of your posts regarding how people approach their trading journey, I must admit you are consistent with being against option 3 of buying the dips , and I am starting to see things through your lens.. imagine someone believing that they will jump in when price gets to $50K ,price flirts with 65k and it's off to 70K + as of today showing that this buying of the dips is for people with cold feet who use this as an excuse not to take up immediate risk

Btw, how would you advise a young curious student who earns from their part time jobs and has left over funds of $500 for miscellaneous  stuff using the JJ investment strategy ?

Many things do not stay the same over 10 years, and even our own priorities might change based on how much our bitcoin investment is growing and based on how much our savings is growing, and we surely might not want to have that much in cash, since many times having 3 months of expenses and perhaps a little bit more is sufficiently enough, yet I have found that the larger our bitcoin investment grows, then we also might find some comfort in having more money kept in cash in order to be able to have flexibility during times that the BTC price might become quite volatile in either price direction, and of course, if we ongoingly have a decent amount of discretionary income that is coming in, then we would be less dependent on the use of any of our back up funds that might be largely kept to be able to deal with fluctuations in our income and/or basic expenses.

That part of our financial challenges, that part is very important, our financial plan is something we shouldn’t fixed forever, because ten years is a very long time and a lot of things can change before then, income, responsibilities even bitcoin can also change. Is good to have a plan that you can stick with for long term, especially when it comes to bitcoin. But some people can make a plan based on their current income for over ten years, and assume to stick with the same plan for ten years, forgetting that financially things can become completely different by then. I also like the idea of someone keep enough cash for personal situations, while start investing, because having some cash alone side of your investment gives you more choices whenever unexpected things happen or the market becomes volatile,  without you bothering to touch your investments, and again when income is coming regularly, after you are done taking care of your needs, you have more choice you continue accumulating your bitcoin, from your discretionary income without touching emergency funds.

[B-BossMan]

One of the reasons that I frequently suggest that guys invest as aggressively as they can into bitcoin without overdoing it is because there tends to be some value in investing aggressively, yet at the same time, guys have to be careful to be investing within their means and not overdoing it.. since there are so many guys who have screwed up their bitcoin investment because they got to greedy in the ways that they were accumulating bitcoin and they were failing/refusing to account for their own cashflow limitations and to make sure that they were simultaneously maintaining back up funds that would be able to absorb some of the (potentially inevitable) fluctuations in their income going down and/or their basic expenses going up.

Sured. That's why it's good to think of the comfortable bitcoin investment strategy than choosing a strategy that will be making you forcing yourself on worrying about your finances or bills to pay. Purchasing too much bitcoin is never a bad ideas, but where many people make mistakes is, purchasing more than thier financial comfortability,and that's why it's advisable to have an emergency funds aside your investment, in order to prevent yourself from being forced to sell when the market turns against or for bills settlement. The best is as you are buying your bitcoin position, you can along the line straightening the funds kept aside fir emergency purposes, in order to give yourself peace of mind. Many folks do put themselves into higher risks by investing aggressively due to greediness. There are still other strategies that bring progress in bitcoin investment, chose the best that fit your discretionary income availability and invest gradually for long-term goals than being greedy.

[Rockstarguy]

I totally understand what you are saying, if someone had bought bitcoin when the price was at $20k and they are still holding it at a price of $70k,  then they have definitely made a significant return. But I still think that we should still be cautious of calling this as “compounding.”  As the market price of the Bitcoin rises, the value of the Bitcoin rises as well, and this is simply because Bitcoin doesn’t generate a regular return that automatically grows over time like compound interest.

If someone invested in Bitcoin when the price was around $20k and the price is currently at $70k plus something now, that doesn't mean they have made a significant profit because what you should consider is what they invested ( the amount of money they invested) because you can not invest $20 to $50 in Bitcoin when the price was $20k and be talking about significant profit because the price of Bitcoin surge to $70k. The outcome will be very small compared to someone that invested some thousands of dollars so it is not just investing but rather the quantity.

This is the reason for accumulating Bitcoin consistently: if you buy Bitcoin with a low amount and you are not consistent with it, even if the price of Bitcoin increases, the manner in which one has been investing may not yield better results. Buying Bitcoin is not something that should be done casually or when one feels relaxed, thinking they have bought enough.

Just as savings are accumulated by constantly adding some amount of money, buying Bitcoin should also be done in the same way, because the more Bitcoin you buy, the better your holdings will be in the future. Some investors believe that buying Bitcoin whenever they like will yield good outcomes because they feel that if a certain amount is invested, their expectations will still come through, as Bitcoin is often seen as a way to get rich quickly.

[Akaenyi]

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

This is misleading buddy and I am really surprised that you are saying this. How does not believing in bitcoin being great in the future gets to do with believing in yourself?
I am really surprised that you are saying this because Bitcoin being successful in the future is not a guarantee as you are saying, we are only investing in it because of it history and the potential it still have to grow further in the future, so saying that Bitcoin investment is guaranteed to be successful is just like misleading others because nothing Is guaranteed in this world of uncertainty.

Because there is no guarantee when Bitcoin can make you rich in the future that is the major reason why we are advised to buy with our discretionary funds, it is from the fund that you can say you're buying with amount that you can afford to lose. The mindset of buying with small amounts according to your income is so you can be able to see beyond believing that Bitcoin have to reach a certain ATH within a few years. So far you can afford to DCA and hold for many years without actually worrying about how soon it will get to $1,000,000 that will be an excellent Bitcoin investment idea.

[Joeboy]

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

Nothing is certain about Bitcoin that's for sure, but then you see the signs that Bitcoin has shown right from its inception in 2009 are already positives enough to tell us that it is a promising investment for the future, and should anyone still be having doubts about this then it is obvious that such an individual is yet to understand Bitcoin..And for those that lacking in understanding well that is very much fixable since it can be done while folks are in the process of their investments.. Of course, understanding wouldn't necessarily imbibe us with the ability to know with certainty what Bitcoin will be worth in years to comes..But giving that very understanding coupled with how well Bitcoin has appreciated in the past, I think it is already a valid reason to prove that it is in infact the very best of the best..

[Sammysmart001]

Many things do not stay the same over 10 years, and even our own priorities might change

This are important part that people do easily over look, DCA should not necessarily mean having to commit yourself to an exact same amount forever. More discretionary income to allocate will come is someone’s income increases. While most a times when there is change in expenses or responsibility may require to reduce it.

That why having a long term Bitcoin plan is very useful but for you to be able to adjust your own plan when financial situation changes can help you to remain consistent without putting unnecessary pressure on yourself.

[cxtreenal]

Many things do not stay the same over 10 years, and even our own priorities might change

This are important part that people do easily over look, DCA should not necessarily mean having to commit yourself to an exact same amount forever. More discretionary income to allocate will come is someone’s income increases. While most a times when there is change in expenses or responsibility may require to reduce it.

That why having a long term Bitcoin plan is very useful but for you to be able to adjust your own plan when financial situation changes can help you to remain consistent without putting unnecessary pressure on yourself.

The purpose of accumulating Bitcoin through DCA is to reduce the risk of investment. Some new investors are confused about whether they are right to invest. They are afraid of taking risks but this method can be considered the best for them. The importance is given to using discretionary income so that they do not face problems in meeting daily expenses. As your income increases, the amount of discretionary income increases and you can increase the amount of Bitcoin holding as well.

A new investor can build up a large Bitcoin holding by maintaining the same position (continuous buying) regardless of the price decrease or increase. One of the many benefits of doing DCA for the long term is to regularly accumulate Bitcoin and adopt a strategy of buying more when price drops as investment experience and cash flow increase.

[Crakryptvest]

If someone invested in Bitcoin when the price was around $20k and the price is currently at $70k plus something now, that doesn't mean they have made a significant profit because what you should consider is what they invested ( the amount of money they invested) because you can not invest $20 to $50 in Bitcoin when the price was $20k and be talking about significant profit because the price of Bitcoin surge to $70k. The outcome will be very small compared to someone that invested some thousands of dollars so it is not just investing but rather the quantity.

Yes you are absolutely right, quantity matters, I do not like discussing profit, because I don't see need for that when most of us have not accumulated enough Bitcoin, but in regards to what you pointed at, before an investor can talk of substantial profit, his acumulation overtime would've been sizable, people should have understand that if the amount you invested in Bitcoin is less and maybe Bitcoin price pump to a higher amount, you'll make profit, but you don't expect it to be very large compared to another investor who invested higher, there's no magic about that, it is simple to know that your investment size, determines the returns you will be getting in the future.

[Stive009]

Anyone that doesn’t believe or have not guaranteed that the Bitcoin will become great assets in future, which means the person doesn’t have believe on his self. Because with the level that Bitcoin has reach now none will have doubts that Bitcoin will fail to be among of the successful coins in future markets.

You are conflating two completely different concepts here. There is no basis for the logic that harboring doubts about Bitcoin's future equates to a lack of self belief.

None of us can offer a 100% guarantee that Bitcoin having come this far will not fail in the future simply because humans cannot foresee what lies ahead. Past performance may indicate future potential but it cannot guarantee future outcomes with absolute certainty. We are optimistic about Bitcoin's potential because of its strong track record but treating that history as an absolute guarantee for the future is not logical it is merely blind confidence.
One can believe in Bitcoin and accumulate it for the long term while simultaneously acknowledging that the future is not 100% certain. There is no contradiction between these two stances.

Labeling the acknowledgment of uncertainty regarding Bitcoin's future as a lack of self belief is essentially an attempt to attach a label to someone rather than addressing the actual argument. Having a strong conviction in Bitcoin's potential does not mandate displaying blind certainty about the future.

We believe Bitcoin has a bright long term future which is why it has garnered such trust and adoption among people. If someone regularly accumulates Bitcoin according to their means using a strategy like DCA and holds it for the long term there is a strong possibility of achieving good results over time. Our role is not to predict the future but to patiently accumulate Bitcoin by adhering to a plan that aligns with our financial capacity.