I admire how Bitcoin can improve our financial situation just by being owned, held, and sold at the highest price one day.
If my monthly income in $500, and my monthly living expenses is $350. That is to say every month I have $150 for misc which investment is among them. Can you explain to me how rich I could be by investing in bitcoin at this stage? The essence of my question is; bitcoin is not only for buying, holding and selling at a later higher price. There is more to bitcoin.
Part of the question also would be whether you have various other emergency savings in place in order that your surplus $150 per month is truly available for you to spend.
The answer could be no. And if it is No, the zeal or the guts to commit half of the $150 into bitcoin investment won't be there.
That's right. We should not be referring to guts because if it takes "guts" for any of us to be investing, that means that we are gambling rather than investing. So in essence your cashflow and emergency funds have to be shored up first in order to realize that you have enough money to be putting into bitcoin.. so for example, if you are still building up your emergency fund, then maybe you could put $10 per month of that $140 into bitcoin, and the remaining $140 goes into building up your emergency fund, and then after a few months of building up your emergency funds maybe you could increase your investment into bitcoin to $20 per month and then later to higher amounts, and surely once you get to the point of being about to invest half ($75) into bitcoin, then you are likely going to be doing well... and if your emergency fund keeps growing, you might get to a point that you are able to do even more than half of your surplus cash of $150 into bitcoin... but of course, how much will be something that you would need to monitor and make sure that you are not devolving into gambling rather than investing.
The economy is too demanding to people whose economy is not stable, even some stable economies are suffering.
I have have been projecting out my finances for more than 30 years, and these days, I tend to project out 2 years in advance. I remember when I was younger, my finances were more simple in terms of the various kinds of expenses and fewer investments, so I could project out only 6 months and keep around a $600 cushion in my projection at all times (plus having other kinds of emergency funds built up in case some of my cash flows were to dry up and/or my expenses were to become greater). As the number of my obligations (and sometimes even my cashflow) became more complicated, I had to create more cushion and also to increase my various forms of emergency funds.
So for sure if there are complications in the economy, then there is more needs to project out cashflows and even more needs to assess the various ways that emergency funds are being held (how long does it take to get to the emergency funds and are the emergency funds earning anything and do they need to earn anything?).
Within the interval of 1 year and few months, the cost of goods tripled. When I examine the reality, I tend to measure people with fairness balance.
We are likely seeing these kinds of changes in our lives. We are seeing what we are told the "cost of living" has gone up, and we are seeing the reality in our lives which might not be the same as what we are being told. People might question if they can make any changes to their income or to their expenses and do they want to make changes.. and sometimes there can be a desire to make changes, but it might not be really practical to make changes. So the ability to save and invest can be affected by these kinds of matters.
Admittedly in such a tight situation, you might NOT be able to feel comfortable investing a lot into bitcoin, and so if you are able to invest $10 per week, you may well have to wait more than 10 years before you start to feel that you have a sufficient enough savings/investment in bitcoin in order to start to feel more wealthy by it and that you have more options.
This is the honest reality and it must be told with boldness. Another question is how many people who is living under the aforementioned budget would be disciplined enough to leave an investment for 10yrs even when in need? A few I guess, that is the irony.
It is really difficult to NOT tap into your investment as it is growing, and I am sure that a lot of people end up tapping into various aspects of their investment too much and too soon, even if they are not liquidating the whole investment, they may well end up shaving off too much of the profits too early and once they shave off profits, then they are in a worse place in terms of allowing the savings/investment an ability to be able to compound upon itself.
Let's say for example, a person makes $10k per year, and over 10 years, they are able to save up around $10k in total into bitcoin (which would be 10% per year), and if they let the investment into bitcoin grow during that time, then the BTC investment might end up growing in such a way that it adds up to representing several years of salary - perhaps 3x to 10x of their salary, and it will be quite difficult to resist tapping into such savings/investment several times along the way.. and I am not even suggesting that they do not tap into some of that savings/investment as it grows, even though there is considerable advantages to allowing the investment to compound.. yet one of the advantage of having some funds that are largely growing is the fact that more options have been created.. And, just having more options can be quite empowering... and the whole life of the person can be improved by creating more options...
and sure, maybe the more poor person is not able to save $1k per year, and instead such more poor person is ONLY able to save $500 per year, so over 10 years, that more poor has ONLY been able to save $5k rather than $10k.. so perhaps their BTC investment will be half of the size of the more well off investor.. but still the poor person who has been able to save $5k might still be able to get a 3x to 10x advantage in terms of the value of the BTC that has been saved, and they are going to be in better position if they had been able to minimize the number of instances in which they had been tapping into their BTC investment.
You are correct with the suggestion that lower amounts of investment does make it more difficult to tangibly measure that you are benefiting by bitcoin and having bitcoin as one of your options. Nonetheless, bitcoin does seem to be amongst the best of investments that are available to people, even people with very tight budgets.
Truth, bitcoin presents one of the finest opportunities for everyone to invest, including people with very tight budgets. But the the bitcoin level of uncertainty is second to none.
You might be exaggerating a bit KingsDen because there are many way worse investments than bitcoin, including getting involved in shitcoins. Getting involved in shitcoins would be a worse investment because you never know when you might get rug pulled.
Even compared to late 2013 (when I got into bitcoin), the current investment thesis for bitcoin seems way better than what it was in late 2013. Sure there is less upside potential now (as compared with late 2013), but there is also less potential for downside, too.
Yeah.. we never completely get rid of the downside risk in bitcoin or in any other kind of investment, but I still think that bitcoin remains amongst the best (if not the very best) of actual investments in which some poor person (and therefore open to anyone) can invest small amounts and still be able to potentially profit from having access to an investment asset (and category) that is better. Sure if you are worried, then you just invest less, and still I understand that even a poor person who might not even be able to invest $10 per week is going to still have struggles to invest the $10 per week.. so these kinds of poor persons can just do what they can. and there are still good odds that they will profit from their investment.. even if it takes a while and even if they feel that they have to struggle to put aside $10 per week or less.
That is why some early birds to bitcoin who refused to invest are regretting today. While the opportunity is still available now, some are still uncertain because bitcoin might not survive this year, then by 2030 there would be another set of people who will regret the opportunity being missed today.
Sure there are people who regret for failing and refusing to take action. There are a lot of those people.. Each of us likely know several of those people who seem to agree that it might be a good idea to put a bit of money into bitcoin, but they continue to fail/refuse to take any concrete action that does not even need to be a lot of money.. If they are whimpy and scared, they can just choose a relatively small amount of money (such as $10 per week), but yeah, they just continue to live with regret over and over and over and they continue to say:
"I should have listened to you when you told me about bitcoin in 2014" or
"I should have listened to you when you told me about bitcoin in 2017" or
"I should have listened to you when you told me about bitcoin in 2019" or
"I should have listened to you when you told me about bitcoin in 2022" or
yes.. substitute whichever year in there, and the ongoing theme remains a failure/refusal to act, and even when I tell people that if they are whimpy then they can just invest a small amount, and they don't even do that either... .. so there is not really much of anything that can be done about those folks, and maybe at some point they will get into bitcoin after everyone they know is also into bitcoin.
