Bitcoin Investment, Beyond "Invest What You Can Afford to Lose"

[Texac]

While risks and scams still exist, Bitcoin itself has proven its worth, emerging as the premier cryptocurrency, demonstrating its dominance over others. The short-term fluctuations are there, but historical data consistently indicates growth over time.So, why should we continue to echo the sentiment of "invest what you can afford to lose" when referring to Bitcoin? I believe this phrase is more suited to gambling or trading, which we all know come with inherent risks.

We do understand that Bitcoin is the best investment in crypto business which has lesser risks than altcoins, especially for long-term holding. However, that doesn't mean this doesn't have risks. That's why you still have to apply "Invest the amount that you can afford costs". When investing in Bitcoin, no one knows what will happen. This is not only related to Bitcoin prices on the market which will go up and down or even skyrocket someday in the bullish era. But the risk is also related to the security of our assets, namely whether one day we will forget how to access or lose the most important information for accessing the wallet. This is also part of the risk. So even if you invest in Bitcoin, it doesn't mean there are zero risks. This is my personal opinion.

Honestly, it's not just the risk of our seed phrase being lost or hacked by hackers, there are a lot of other potential risks as well.  I also disagree with what OP said because the future is unpredictable.  bitcoin has a great history and past, which doesn't mean it will continue to do so in the future as well. 

OP, if you think investing in bitcoin is risk-free, do you have any proof or is it just your baseless thoughts?  optimism is good, but we also need to be realistic because otherwise we will pay a very high price for our subjectivity.

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[Marvelman]

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I think you've gotta be careful with it, as with any other investment. Don't get me wrong, its the top dog in cryptocurrencies no doubt.  but that doesn't mean there aren't still risks and stuff we don't totally get yet. and  You made a good point about securing your assets and how the market can be unpredictable.  The whole only invest what you can lose thing makes sense cause you never know what will happen, whether it's the price jumping around or some security problem popping up.  It's like walking on a tightrope, just takes some balance and taking it slow and steady.  What do you think about spreading your investments around to avoid putting all your eggs in one basket? That might help even things out if one goes south.  But hey that's just my two cents, Im no expert!

[Jegileman]

Investing in Bitcoin means being part of one of the world's most revolutionary technologies. It's not just an investment in today but potentially one of the most valuable assets in the future. So, instead of wasting time and money on 'shitcoins', consider starting now it's not too late. The focus should be on investing what you are willing to HODL for the long run, rather than what you can afford to lose.

To invest with such idea in mind simply means that; bitcoin is not shitcoin, it is only shitcoins you can afford to lose but when your investment is in bitcoin, the meaning should change to what you can afford to HODL. I think it is time we stop relating bitcoin to what you can afford to lose but it should be what you can afford to HODL, if you HODL for a long time, it means you are holding in order to reap the benefits of it in the future and a mindset changed to what I can afford to gain and not lose. Shitcoin can be what we can afford to lose and Bitcoin is what we can afford to HODL for a long term to reap good profits.

[nurilham]

To invest with such idea in mind simply means that; bitcoin is not shitcoin, it is only shitcoins you can afford to lose but when your investment is in bitcoin, the meaning should change to what you can afford to HODL. I think it is time we stop relating bitcoin to what you can afford to lose but it should be what you can afford to HODL, if you HODL for a long time, it means you are holding in order to reap the benefits of it in the future and a mindset changed to what I can afford to gain and not lose. Shitcoin can be what we can afford to lose and Bitcoin is what we can afford to HODL for a long term to reap good profits.

Sure, Bitcoin isn't categorized as a shitcoin. Bitcoin is the most recommended coin for crypto investment. I agree that we can use whatever the amount of money that we can hold for a long time if it is related to Bitcoin investment. Its cycle is clear enough, it is actually not a too high risk investment. But people still assume it is a high risk investment because it has a high volatility in price. That volatility makes people to decide investing with the money that they afford to lose only. I think it is no problem people have any concept for their own investment. As long as the concept won't risk their investment, it is always okay to apply. People only want to spend the amount of money that they afford to lose in Bitcoin or shitcoin, it is because they don't want to expect too much in crypto investment. They also minimize the potential of a huge loss by using this concept. Although it looks having a negative mindset, but I think it is a secure way for them.

[mirakal]

 For me, we can still follow this phrase "INVEST WHAT WE CAN AFFORD TO LOSE" and just continue to do the DCA  thing if we want to maximize our bitcoin investment. It's not that we are still hesitant but as long as bitcoin remains to volatile, it will still be considered a high risk assert regardless if some of the people now consider it as a safe haven asset. Risking our money without high guarantees to end in profits is already a sign that we invest on our faith for bitcoin.

However, its also a good idea to invest what we are capable for long term hodling, but definitely let's do it with caution. Bitcoin, no matter how sound and profitable it is in the market, but when volatility strikes in and pull down the price of bitcoin, then investing it at a high caution should always be the best option.

[danadc]

In bitcoin the Investment is safe , there is no room for you to lose, the people who Invest in bitcoin will always be winners, can bitcoin go down a lot in price? Of course yes, this is an opportunity for the most intelligent people to buy bitcoin and be able to guarantee their treasures more, so in this sense things when they are not very focused on doing things well, they can do it in many ways , if that works. Thus , it may happen that some with good intentions can buy more bitcoin and can build a future for themselves and their family, if that is what is sought , the best investment guarantees Happiness in the Future.

[taufik123]

In bitcoin the Investment is safe , there is no room for you to lose, the people who Invest in bitcoin will always be winners, can bitcoin go down a lot in price? Of course yes, this is an opportunity for the most intelligent people to buy bitcoin and be able to guarantee their treasures more, so in this sense things when they are not very focused on doing things well, they can do it in many ways , if that works. Thus , it may happen that some with good intentions can buy more bitcoin and can build a future for themselves and their family, if that is what is sought , the best investment guarantees Happiness in the Future.

A safe investment in Bitcoin depends on how one invests, whether they are patient enough to have some strategy or just go in without any knowledge with money they still need and a high level of panic.

It's not that there is no room for loss in Bitcoin, there definitely is and those who panic will do so when the price crashes and they don't have any strategy.

A good investment is one that they understand, and know what to do with.
There is no panic when the value of the investment drops and still has reserves to buy back.
People who are smart in investment will benefit in the end, but those who are stupid and too panicky or too greedy, will only end up with losses.

[Essential10]

It is not right to do anything beyond the means. Be it from Bitcoin or anything else. Bitcoin is variable and dynamic. Individuals with intelligence can be more present to use Bitcoin and help increase their financial security. Investment may be necessary, with self-protection and knowledge individuals may be able to invest. Curiosity and tolerance for new areas are qualities that can help you adapt successfully. Proper consideration of personal circumstances and financial status is important when investing in Bitcoin and can help you become a reliable investor. Bitcoin doesn't mean "Invest what you can lose" I think Bitcoin means "Invest Bitcoin what you want to gain". The best way for investors is to hold. Bitcoin Hold is a medium that is the only way investors can trust the expected results in the near future.

[jasonjm]

It is a matter of perspective. Basically, this is an expression to tell a person how much he is willing to take risks. In crypto investment, there is always the risk of loss if you have not done your homework properly. Bounding your money for a significant amount of time can come into this category because this is the amount of money you will not be able to use because of the market condition. HODL, in my opinion, can only be applicable to BTC investment. You can not hold altcoins for a longer period because they might be wiped out of the market in a year or two.
It is always better to invest your extra money that you may never use in the near future.

[Ben Barubal]

  When we say "invest what you can afford to lose," it means to me that even if you don't make a profit, it's fine, or you think that's a loss. That's just what stuck in my mind. Until now, my view has been the same.

  I guess I've gotten used to it, so those who believe in a quote like this are full-pledge risk-takers who also have a deep understanding of the crypto or bitcoin business industry in this field. As long as before investing, you should always pay DYOR; don't forget that.

[Inwestour]

It is a matter of perspective. Basically, this is an expression to tell a person how much he is willing to take risks. In crypto investment, there is always the risk of loss if you have not done your homework properly. Bounding your money for a significant amount of time can come into this category because this is the amount of money you will not be able to use because of the market condition. HODL, in my opinion, can only be applicable to BTC investment. You can not hold altcoins for a longer period because they might be wiped out of the market in a year or two.
It is always better to invest your extra money that you may never use in the near future.

Investing in Bitcoin also contains certain risks, although at the moment we see how the price of Bitcoin is confidently trying to continue to rise, despite the fact that the rest of the market remains relatively close to the bottom. Investing in Bitcoin is long-term and if you buy Bitcoin, you should understand that waiting for a bull market may take several years, so you should only invest in it with money that you can afford to invest for a long period.

[Victorik]

The phrase 'invest what you can afford to lose' is usually tied to altcoin investment, especially shitcoins, not necessarily BTC. Every one knows that Bitcoin investment is never a lose, if you can hold. But the same can not be said about some altcoins.

Moreso, you can't tell people to leave shitcoins, though it is very risky, but there are some who have made a fortune and from it. For example, Shib, which is a meme token made many millionaires.

[icalical]

Bitcoin allows entry with even a small capital  as low as $5 to $10, which isn't something I will even want to lose.such an investment should not fall under the category of what you can afford to lose.

OP miss to distinguish between the phrase 'Invest what you can afford to lose' with 'Invest what you are willing to lose' both are very different things, no one invested their money and willingly losing it. 'Invest what you can afford to lose' doesn't mean investing carelessly and willingly losing money, 'Invest what you can afford to lose' means that if you lose the money of your investment you are still financially able to continue your life and recovering from the money lost, and then collecting money again to reinvest.

Invest what you cannot afford to lose, in a simple example would be lending money from a bank to Bitcoin with interest and collateral, that when we make a bad investment it make us bankrupt.

[knowngunman]

Investing in Bitcoin means being part of one of the world's most revolutionary technologies. It's not just an investment in today but potentially one of the most valuable assets in the future. So, instead of wasting time and money on 'shitcoins', consider starting now it's not too late. The focus should be on investing what you are willing to HODL for the long run, rather than what you can afford to lose.

But I think this rule is a key principle in general when it comes to investment and not only applicable to cryptocurrency or bitcoin in particular. I still hold the believe that you should never invest money that you can't afford to lose because there's always the possibility that you could lose it all. Although, there's the potential for big gains if you invest wisely and just because Bitcoin has proven itself over time doesn't mean that it's risk free. As the saying goes, past performance is no guarantee of future results. So even though Bitcoin has done well in the past there's no guarantee that it will continue to do well in the future (although, this is not likely).

Investing recklessly without considering the risks is a recipe for disaster and taking a calculated approach is the way to go. You just have to prepared yourself for the unexpected always.

[ivankoh]

"Invest what you can afford to lose" - I think this phrase should be in general status when investing in crypto. That means with everything you should invest only when you learn it, not just buying/holding/trading or surfing... risks can still come from hackers or basic mistakes. Maybe bitcoin doesn't inherently bring any risk, but it comes from other factors. Crypto brings risks, but bitcoin does not necessarily "bring" risks

[AicecreaME]

I think $5-$10 of investment in Bitcoin is too small and not worthy if you're going to go for long term investment, unless you're planning to add some capital for bigger profits in the long run. My point is, to make it more worthy while waiting, max your capital but don't forget to spare some extra money for yourself, like to pay bills, buy foods, and for your wants and other needs.

"What you can afford to lose" doesn't mean that you have to be more miserly when it comes to what you're planning to invest, for me it means that whatever amount of money you think is worthy to invest is worthy of your waiting time while waiting for the result, either it is bad or good.

[Ale88]

The phrase "invest what you can afford to lose" has long been the go to advice when it comes to Bitcoin investments. In the past, it seemed to be a norm, a safety net, but it's time to reconsider its relevance. Over the years, Bitcoin investment has undergone a significant transformation. What was once a realm fraught with doubts, fears of capital loss, and scam risks has evolved into a more stable and less volatile investment landscape.

That phrase doesn't refer to bitcoin only, it's for all types of investment because even the classic stock market can dump, and you you invest money that for whatever reason you are going to need then you're in big troubles because what are you going to do? Best case scenario you sell at loss and still get some money back, worst case you lose everything. Investing is not a game.

[Dr.Osh]

Well, however, you describe it, I would still advise people I know to invest what they can afford to lose. However, it is the lowest level to minimize losses that could occur in the future.
OK, we agree with the statement that Bitcoin has great potential in the future. however, what we have is only “belief”. When people are asked whether Bitcoin will reach $100k, people will answer "yes". and, when that will happen, the answer is "don't know". When people invest more than they can invest, borrow, or anything else to invest in Bitcoin, it's not a good thing. maybe in the future, the price will rise, but we need to consider living needs and other unexpected costs. Many people are forced to sell the assets they own when they need money, whether because of economic, health, or other factors. Well, what if at that time prices were very low, then big losses would occur, and the people who pushed to invest more would be blamed. If you had said to invest in what you can afford to lose, and they don't listen to that, then in the future, when things get worse, you can't be blamed for that.

[ginsan]

I think I agree with the Op in that one should take the worry out of investing in Bitcoin. As far as I have experienced and discussed with several people, it is true that they often think that the money you invest will be ready to lose, perhaps they stick to fluctuating prices which makes them say so. But day after day and month after month Bitcoin has been mass adopted and that's where they regret what they have done before, namely being afraid to invest in Bitcoin.

Bitcoin has a limited supply and the development of Bitcoin has been one of the best in this modern era so those who are afraid to invest in Bitcoin are one of the groups left behind by current progress. Many companies have invested in Bitcoin so the notion that they can afford to lose should be thrown away immediately and restart investing better, either doing it with DCA or buying at every dip to hold it in the long term.

[Blitzboy]

Well, however, you describe it, I would still advise people I know to invest what they can afford to lose. However, it is the lowest level to minimize losses that could occur in the future.
OK, we agree with the statement that Bitcoin has great potential in the future. however, what we have is only “belief”. When people are asked whether Bitcoin will reach $100k, people will answer "yes". and, when that will happen, the answer is "don't know". When people invest more than they can invest, borrow, or anything else to invest in Bitcoin, it's not a good thing. maybe in the future, the price will rise, but we need to consider living needs and other unexpected costs. Many people are forced to sell the assets they own when they need money, whether because of economic, health, or other factors. Well, what if at that time prices were very low, then big losses would occur, and the people who pushed to invest more would be blamed. If you had said to invest in what you can afford to lose, and they don't listen to that, then in the future, when things get worse, you can't be blamed for that.

Its a great piece of advice to only spend what you can afford to lose. This is especially true when markets are volatile. Why? As you said, the future of Bitcoin is full of "ifs" and "maybes," even though it looks bright. Undoubtedly, it will reach $100,000, but when?

Investing too much, especially when you borrow money to do so, is like taking a chance with your money. Price could go through the roof, but it could also go through the floor. If it does happen and you have to sell at a loss because of things you cant control, like health problems, economic downturns, etc., thats two bad things in one.

As a result, your stance serves as both advice and a defense against potential future blame. People may not pay attention to your advice, but they will remember them if things go badly. As the saying goes, "balance" means weighing promise against usefulness. That balance is very important when dealing in crypto, which is a very risky business.