Aggressiveness level remains a choice that each of us has.
Sure, we can proclaim that the more aggressive we are in buying bitcoin, then the more likely that we will profit in the future from our bitcoin investment, and accordingly we would presume that bitcoin prices will continue to go up... yet in the end, each person has to decide.
I frequently suggest that guys "should" try to invest in bitcoin as aggressively as they can without over doing it.
There is a difference between the use of the term "should" and "must." Ultimately, when it comes to how whimpy or aggressive we are in the way that we buy bitcoin and in the way that we manage our cashflows, each of us chooses, and we are responsible for our choices.
This is true because in the end its your personal financial capacity that decides whether you will remain whimpy or aggressive in your Bitcoin accumulation. As we have seen that if a person falls in
Hypo-15 (many of us fall in this category in the start) then
he needs to be aggressive because he not only has to gather bitcoins but also build his emergency funds.
I agree with you that an overwhelmingly large number of newbies start their bitcoin investing journey without any investment portfolio and with needs to invest into bitcoin within the scope of the discretionary income that they earn from their employment.
Even though I frequently suggest that bitcoin investors should invest into bitcoin as aggressively as they can without over doing it, there is a difference between the use of the word "should" and the word "need" as you are proclaiming.
I should not have to repeat myself so much in terms of the same point.
Nonetheless, how aggressively any particular person (newbie or otherwise) (rich, poor, or otherwise) chooses to invest into bitcoin remains a choice within the boundaries of the discretionary income that he has. He can choose to invest high percentages of his discretionary funds into bitcoin or low percentages, and like you said, he should be figuring out how to build up his back up funds at the same time that he is building up his bitcoin investment.
He may well have limitations in regards to how much is able to increase his discretionary income, yet many of us recognize/appreciate that the more he is able to increase his discretionary funds, then the more options he will tend to have.
Also by just looking at the capital of a person we can't say whether he is whimpy or aggressive because there are people who can spare 100$ per week from their net income and they are investing all that in Bitcoin while there are people who can invest 1000$ per week into Bitcoin yet they decide to spend only 500$ per week due to their own reasons.
We don't really need to know if they are whimpy or aggressive, since each person decides for himself based on both subjective and objective factors.
Within his own parameters he can choose to become more whimpy or more aggressive from week to week, and within your own example, if a person is able to invest $1k per week, then he chooses to invest $500 per week then he is being more whimpy relative to his other option. I doubt that it is very helpful to compare one guy to another, even though it seems helpful to compare a guy relative to himself and other options that he could choose to exercise.
We can't say person who is investing 100$ is whimpy rather he is aggressive in his approach because he is investing what all he has at its disposal.
Sure your $100 per week example may well be aggressive (and probably even overaggressive?) if he is investing all of his discretionary income into bitcoin, and surely I advocate to consider all three categories of allocation, even if there may be a lot of weighting towards bitcoin investment, and it would be way more healthy to allocate 80/10/10 to investing, savings and discretionary consumption rather than 100/0/0. It makes little sense to me to fail to allocate anything towards savings and discretionary consumption, and if a person is investing in bitcoin without allocating anything into savings and/or discretionary consumption, then my off the cuff presumption would be that he is overinvesting.
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I get your point about how emergency funds is in every investment, but don’t make it sound like a must, there are people who go into investment without having emergency funds. The core thing about investing in Bitcoin is to get discretionary income and start buying.
How are you going to know that you have discretionary funds if you do not have some extra funds that you know with high confidence will last you until the next time you get paid? whether you call those extra funds: emergency funds, back up funds, reserve funds, float or some other term, you need some extra funds in order to make sure that you do not run out of money before the next time that you get paid.
I doubt anyone is proclaiming that you need full emergency funds, since it may well be the case that guys who are newer to bitcoin have a lower quantity of back up funds as compared with guys who have been in bitcoin for a while. You cannot have absolutely zero back up funds -otherwise you have no way of knowing that you are going to be able to survive until your next paycheck.
There are people who might miss get what you are trying to say and think they will need to figure out emergency funds before starting their Bitcoin accumulation.
Huh? Hopefully no one thinks that. Many of us participating in this thread understand that there is importance in getting started investing in bitcoin, and surely it seems problematic to me to proclaim or to imply that no back up funds are needed, even though many of us understand that the ONLY thing really needed to get started investing in bitcoin is discretionary funds, yet how is a guy going to know that he has discretionary funds if he were to use all of it to buy bitcoin and not have any extra money so that he can make it until his next paycheck.
And on what you are saying about decisions making should not be on the future but the present, then I will say you are wrong. Bitcoin investment itself is about the future, it about making plans for your future. When a person begin to make decisions base on the current situation then they can easily get emotional about the market.
I don't see any problem with guys looking at whatever they like, the present, past and/or future. Of course when we are considering our income/expenses, there is more immediacy for income/expenses that are within the same week or the same month, as compared with income /expenses that might be 3-6 months into the future or more. .. and yeah, maybe the further we project out, the more we might not know specifics, yet we might ballparkedly know what we expect to be happening, yet at the same time, being prepared for circumstances in which our income/expenses might end up changing.
