Another thing is that even if we might have an investment portfolio and we might not even invest aggressively into bitcoin, and maybe ONLY take a 1% stake into bitcoin, we still might end up with a good portfolio, but that is not guaranteed either, and I tend to recommend a starting out range of anywhere between 1% to 25% for a newbie into bitcoin, yet they still have to decide their allocation amount and their strategies in regards to how they get there.. if they might be starting from zero in BTC and then trying to figure out how they might get to their chosen allocation/target level, and are they going to lump sum into it? or maybe they will take one or two years to get to their target level, or maybe longer than 1-2 years.. depending on how much they might have in other investments (and how liquid might be those other investments).
That's very true, only 1% in most cases is enough to stake into Bitcoin, and few people will have good portfolio with that much of investment. But, a proper range to add into Bitcoin would be around 10% and more if you have firm trust on it and its potential. The 1% rule may not work for the ones who have very low budget and the best starting range for such people should be around 10-25% like you have suggested. It's always better to have a proper strategy when investing in Bitcoin. My investment strategy is simple because I think the best time to accumulate bitcoin is when the market gets a dip. The dips are actually best for increasing ones investment in Bitcoin and some good Altcoins because during the dips we can accumulate some extra worth of Bitcoin than their regular prices. And, if we start investing 10% of our income or capital into Bitcoin during the dips than our accumulation will be enough within 2-4 years that we can hold for a decade or two to earn good amount in profit.
Aside from Bitcoin and cryptocurrency investments I think one should still save the rest of the 15% for other assets that have the potential to be huge in future. The best investment in that case would be on a asset class that may grow to good price ranges in future. I think in my eyes gold has that potential and it can grow slowly but substantially in price in coming decades, and I believe that 25% of our earning should always be invested in something that could make our future life free from financial issues. The rest of the 75% are enough to enjoy the present moments of life, and to meet our daily needs. I think that way one will never have to be worried when it comes to financial needs. The investment in proper assets is the way to go and someone who's wise enough will always choose such strategy. It's best to have 25% of ones earnings to be invested in Bitcoin, some good Altcoins, and into an asset like gold or something else that has the potential to grow in future.
I know that I have not explained what I mean very well, and if some one is brand new and brand new to investing, then they might start out with ONLY investing into bitcoin with any extra cashflow that that they have, and maybe if they have an ability to save 10% of their income (and invest into bitcoin) it could still take them around 10 years to build their investment portfolio in which they have an amount that is in the ballpark of 1 years salary (or one years living expenses), and perhaps at that point maybe they would diversify out to some other things besides bitcoin and cash.. maybe property, equities, cash equivalents like bonds and commodities (and perhaps gold, I am not sure about gold, I think that bitcoin is around 1,000x better than gold so bitcoin is likely going to continue to eat gold's lunch since it's current price is around 1/20th of gold.... but hey people can figure out their tolerances and the things that they want to invest into, and maybe they come to bitcoin and they already have other investments, but if they are new to investing, I don't see any reason to diversify out - especially in the earliest of years.. and especially I doubt that it is a good idea to buy any shitcoins.. but people are going to do whatever they decide to do and they are responsible for their own investment decisions.
@JayJuanGee, i see that you understand how to start and investment strategy for someone is just started his bitcoin journey because,he hasn't really trusted bitcoin but he has been convinced on bitcoin investment that it is profitable. A newbie wouldn't want to allocate up to 25% on bitcoin because he hasn't have that confident in bitcoin and whoever introduced him into bitcoin will tell him that bitcoin is risky and he should invest with money that he can afford to lose.
Prior to March 2020, I used to recommend that any initial consideration regarding how much to invest into bitcoin should be in the range of 1% to 10%, so after March 2020, I changed my recommendation range to increase the higher end of range of the investment amount up to 25% in terms of what I believe that the newbie investor should consider.. mostly because I think that March 2020 showed the investment thesis for bitcoin to be stronger.. and I was also wanting to communicate aspects of my own change in perspective through what I was suggesting to be a good starting range for any newbie to consider.
In the end, each investor is responsible for what s/he does (whether newbie or advanced investor). I take absolutely no responsibility over people relying on my assertion and if they lose money it is exactly their fault for whatever decision that they make, how they structure whatever they do and whether they got their shit together in regards to their own finances and psychology.
I am not going to back off in my attempt to communicate what I believe to have changed in what we know about the economy since March 2020 and in how I attempt to communicate my recommendations regarding how people consider to invest into bitcoin, and also there are a lot of particulars in regards to individual investors and the shit that they personally have to get together to make sure that they are investing from discretionary income rather from cashflow that they actually need to cover expenses.
I believe that I am being conservative, and people have to figure out if they are on the high end of the range or the low end of the range or if they want to go outside of the range.. I am not responsible for what they choose, even though I can continue to assert that I believe that after March 2020, there are circumstances that seem to justify why I recommend a higher range for newbies to consider.. and yeah, maybe my recommendation does not ONLY apply to newbies, because there could be some people in bitcoin that may well have been here for a while and need to reconsider the extent to which they feel that they have enough bitcoin and if they might need to up their game into more aggressive rather than previously having had been overly whimpy in their approach and thinking about their bitcoin stash.
So if people do not have their shit together sufficiently enough in order to figure out their own discretionary income, then that is on them.. not on me.
Another thing that I started to do after March 2020 is to suggest that people get the fuck off zero, and prior to March 2020, I would suggest merely $10 per week as a good but relatively whimpy investment into bitcoin that could make a decently large difference in wealth over time; however, after March 2020, I began to lead out by saying that you better do $100 per week..
Due to the money printer go bbbbbrrrr philosophy/policy/practice that was pretty clearly communicated right around that March 2020 time (or in response to various liquidity and lack of confidence issues of that time) $100 per week has become the new $10 per week.. .. so get the fuck off zero, start putting in $100 per week, figure out the details of your finance and establish your bitcoin accumulation strategy that is such a level of aggressiveness that is aggressive but not so aggressive that you end up recking ur lil selfie because you failed and refused to actually sufficiently/adequately account for your own expenses (including maintaining various emergency funds)..
And, yeah, if you only earn less than $800 per month, and you have $600 per month in known expenses, then mathematically you better figure out that you are not in a position to invest $100 per week and you might not even be able to do $10 per week, so you gotta figure out for yourself how aggressive that you can be without being so aggressive that you end up recking yourself. That's not on me. People are responsible for themselves, but I am still going to say that $100 per week is almost like $10 per week was prior to March 2020.
Another thing is that each of us is responsible to exactly figure out his/her particulars.. and it can take a decently long time to figure out personal particulars, but in the mean time anyone can still start to figure out how to start to buy BTC and maybe find some avenue in which s/he is able to DCA into BTC at a level that works in terms of balancing fees/costs for obtaining the quantity of BTC that s/he is acquiring on a weekly basis, and even though I recommend figuring out the target level of BTC that you want to aim to achieve and that in the beginning that you might want to be aggressive enough that you are accumulating BTC every week, I understand that there might be some people who have situations in which it is not really practical for them to employ the strategy like I am suggesting (a kind of gold standard approach) and they have to figure out for themselves what is more practical for themselves to maximize their own attempts to reach their balances and their ways of attempting to improve their lot in life.
By the way the personal considerations that each of should be attempting to get under wraps (and consider to our own situation) are cashflow, how much bitcoin you have already accumulated, your other investments (including cash reserves), your view of bitcoin as compared with other investments, timeline, risk tolerance, and your time, skills, goals (investment/lifestyle targets) and your abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments.
It can take a long time to figure out each and every one of the subcategories within the above-outlined individual considerations, yet no one has to figure them all out at one time or before getting started investing in bitcoin.. and accordingly any person could start by investing relatively small amounts or investing some amount that they believe to be reasonable and prudent - and continue to study their own circumstances along the way, and perhaps tweak their investing strategy from time to time along the way, as they are learning.
A newbie shouldn't even think of investing in altcoins because shitcoins are short term investment and can make one loss out when you hodli for up to 2yrs or more.
I agree with you, but you cannot really stop people from thinking that they are smarter and wanting to get involved into the various crap and into believing the various talking points about the crap.. so yeah.. I don't know how to stop people from doing that.. except just to state the matter clearly, and people are responsible for their own gambling tendencies, their gullibilities towards wanting short cuts in terms of getting rich quicker, and their failure to sufficiently/adequately understand the value proposition of bitcoin.
As time goes on and that newbie begins to understand the potential in bitcoin and bitcoin technical analysis,he can choose to increase his bitcoin accumulation from 1%-5%,depending on his cash inflow and so on. Finally,when he is grounded on bitcoin,he might increase his bitcoin accumulation to 10%-25% range.
Sure.. nothing wrong with that... and nothing wrong with potentially taking a gradual approach, but I would not necessarily be so patronizing to presume that some newbies might not be able to figure out some prudent ways to be more aggressive and go higher in the range or even higher than you might be recommending as a starting out range.. people have to figure out the details for themselves, and I provide a range that is so wide but still at the same time telling them they gotta figure out what works for them.
When I got into bitcoin in late 2013.. I did not exactly know what my goal was going to be in terms of percentages, so I gave myself a bitcoin allowance for the first 6 months .. .so I ended up dividing the total amount in that allowance into 26 parts in order that I knew what my weekly allowance would be, and then around the end of that 6 month period I had to consider if I would give myself an additional allowance amount or to discontinue or to take some other approach.. so largely at the end of the first 6 month period, I extended mostly what I had already been doing for another 6 months, and it was not until the end of the second 6 month period (which was towards the end of 2014) that I figured out that I wanted to aim for 10% of my overall quasi-liquid investment portfolio (as I had then calculated it to be) would be into bitcoin.
However, the whole of 2015 the bitcoin price had continued to be down, so largely I ended up continuing to buy bitcoin, and by the end of 2015, I had figured that I had reached somewhere around 13.5% of my investment portfolio amount into BTC..so in some sense I considered that extra 3.5% to have had been a kind of overallocation, but my own ongoing investment and interaction with my investment portfolio (and how BTC related / fit into it) helped to better inform me what I wanted to do next and how I wanted to attempt to maintain and manage what I had considered to have had been an overallocation that I had chosen to do based on my then circumstances.
So part of my point is that any of us can attempt to create individualized BTC accumulation and then maintenance and then liquidation strategies that would hopefully be attempting to account for our long term considerations; however, at the same time, as we work towards reaching our goals, our progress and likely our increase in stash and maybe even changes in value of BTC might help to better inform us in regards to our own particulars if we still remain in an accumulation stage or if we graduate towards more of a maintenance stage, and it could take someone more than 10 years to start to feel that s/he is getting out of an accumulation stage and into a maintenance stage.. so there will surely be individual particularities that will need to be applied.
Gold can't be compared to bitcoin in terms of profit if you either invest in short or long term.
I don't really disagree with what you seem to be saying, even though I see what you are saying to be somewhat incomplete - especially since bitcoin has frequently been compared to gold in terms of what people can understand in the historical investment world and even in terms of what it seems that was attempting to be achieved in regards to bitcoin and even how satoshi and other cypherpunks would frequently talk about gold and rationales to have a money that does not steal from us... so if we end up having something like physical gold that is solid and tangible and historically used as currency because of several of its attributes, including difficulties to manipulate, but then over the years, there have been more and more ways that gold ended up getting manipulated, so even gold does not live up to what it is supposed to be able to do.
This reason is this,bitcoin has a high volatile nature which makes it the best investment on earth.
I doubt that bitcoin's volatility gives it value exactly - even though indirectly you are correct that part of the reason that bitcoin has ongoingly expected volatility that continues to be likely to go upwards and to the right is because bitcoin is still in its early stages of adoption and it is likely around 1,000x better than gold.. so it could take a while for bitcoin to reach its market potential and market maturity.. perhaps 100 or 200 years, so in the meantime, it does seem likely that bitcoin will continue to grow - in spite of various battles along the way, and perhaps even some intense battles along the way from the status quo rich (and financial) systems to perceive that they do not benefit from the objectivity that bitcoin provides rather than the places of privilege that a lot of the status quo rich have been holding to preserve their own wealth and to not allow others to easily get into such positions... and bitcoin likely will continue to cause transfer of wealth from the no coiners to the coiners.. and sure some of the status quo rich might get into bitcoin early and be rewarded for such, and some will refuse to get into bitcoin and see that they are likely going to end up losing out to those who had been investing into bitcoin.
