Buy Buy Buy or Sell Sell Sell?

[ZeroVinsonN]

Therefore I believe using emergency funds for investment is a very risky decision. Not because of the fear of losing money in the investment itself, but because of the fear of not having funds available when they are truly needed.

Anyone that takes such a step, by using his or her emergency funds to invest in Bitcoin is no longer investing in Bitcoin but he is gambling with his investment, which might likely cost him in the nearest future, because once emergencies arises and the emergency funds is not available that particular time, he will be forced to sell or temper with his Bitcoin investment to sorts out his the pressing emergency at hand, so this is a risky gamble all Bitcoin investor should avoid by all means.

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

[Grace333]

[edited out]

Emergency cash are meant to stay untouched unless life really throws something unexpected at any one it can be tempting to dip into funds when the market pulls back especially with versatile bitcoin is,

When we are early in our time of building our bitcoin holdings and our emergency funds, it may well be the case that we are tapping into our emergency funds /back up funds because we are still in the process of building up our systems.

We also cannot presume how long it is going to take for guys to build up cashflow management systems.  if guys have a lot of discretionary funds, they can build up their systems fast.  Other guys might take years to build up their systems.

We cannot generalize regarding how an ideal system might look and then presume that everyone can build up to an ideal system from whereever they are starting out, since some guys will take longer than others to get there, and some guys might continuously get knocked out of their system (whether due to their own mistakes or due to complications that they might already have in their lives that are causing demands on their time, energy and money.

This is a fact that most investors often ignore. They feel as though building financial security around themselves is just an overnight exercise. But in reality, this is a process that takes quite a long time with uneven stages to achieve. And it’ll be very unrealistic for anyone to think that there’s an actual universal ideal setup that everyone would arrive on the same timeline.

True, because it makes no sense that a lot of people step into investing expecting quick wins, like pressing a button today and waking up rich tomorrow. But the reality is way different, building real financial security is kidda a lot. And there are good days, bad days, and moments where it feels like you are not moving at all.
And the thing is, everyone journey is different. There is no universal timeline or perfect setup that works for everyone.

[Cossyblack]

True, because it makes no sense that a lot of people step into investing expecting quick wins, like pressing a button today and waking up rich tomorrow. But the reality is way different, building real financial security is kidda a lot. And there are good days, bad days, and moments where it feels like you are not moving at all.
And the thing is, everyone journey is different. There is no universal timeline or perfect setup that works for everyone.

Some people believe wealth can be gained from investing in Bitcoin over night,quick in a blink of an eye. Usually I don't blame them because they have been real misinformed about Bitcoin investment. The truth is, Bitcoin investment is not a get-rich-quick investment that you can invest and start receiving quick returns over night but rather, a long term investment that requires consistent accumulation, long term commitment and the patience to Hodl. Bitcoin shouldn't be seen as a tools for short term profits but rather, investors should prioritize Hodl for 4-10 years.

[Barikui1]

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

That's not a mistake bro, that's pure gambling with your investment because from the very onset, you should be knowledgeable enough to understand that emergency funds are only meant for real life emergencies that threatens your Bitcoin holdings, so if because of greed you decide to gamble with it, by investing with it, that's no longer an investment but a gamble that may likely not to ends well on the long run.

[pusaka]

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

That's not a mistake bro, that's pure gambling with your investment because from the very onset, you should be knowledgeable enough to understand that emergency funds are only meant for real life emergencies that threatens your Bitcoin holdings, so if because of greed you decide to gamble with it, by investing with it, that's no longer an investment but a gamble that may likely not to ends well on the long run.

We often advise that we should have an emergency fund when investing, but investing using an emergency fund is the exact opposite of what we're always reminded of. So, I agree with you that it's no longer a mistake, but rather a gamble.

We must separate our money based on our allocations, money for daily needs (including bills and other expenses), money for an emergency fund, and money for investments. Don't mix them all up, and that's why we need good financial management. Everything stems from this, and our understanding of this will help us differentiate between them.

[Bigjoe33]

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

It's is just so bad how some people just feel so careless about some certain things that should be taken to heart and very important. Imagine a teacher going to the school without his teaching materials, and/or a student going to the classroom without writing materials or learning aids, how bad it can be.

An investor without the knowledge of the importance of emergency funds, and fails to build it up while accumulating Bitcoin is rather building his investments on dust as it can be broken down anytime soon once emergency situations comes up without your emergency funds readily available to handle it. Investors must treat is as important if you want to Hodl for long

[Mr_Brilliant$]

Emergency cash are meant to stay untouched unless life really throws something unexpected at any one it can be tempting to dip into funds when the market pulls back especially with versatile bitcoin is, but once that safety net is gone its gone using reserve or floats cash for opportunities makes way more sense the reason being becuse those are the ones you can actually afford to move . Emergency does not gives warning and the last thing everyone wants is to be stuck in a good situation with no cushion.

Hey Crytohillss, I hope you don’t mind me saying this, but I feel it might be a bit easier for everyone to follow if you could pick out the specific message you are replying to…. JJG addressed several different points of Theupdude, and when you reply to all of them at once without specifying which point you mean, it becomes a little tricky to understand exactly what you are referring to..  
I respect your input though, but it is just that highlighting the exact message would make it easier for me (and maybe others too) to follow your thoughts properly..  Just my humble suggestion, hope you don’t find it offensive..

[Pandorak]

We often advise that we should have an emergency fund when investing, but investing using an emergency fund is the exact opposite of what we're always reminded of. So, I agree with you that it's no longer a mistake, but rather a gamble.

We must separate our money based on our allocations, money for daily needs (including bills and other expenses), money for an emergency fund, and money for investments. Don't mix them all up, and that's why we need good financial management. Everything stems from this, and our understanding of this will help us differentiate between them.

There must be many reasons why he did that, but one thing is certain, this situation shows that he lacked patience ^{(afraid of missing out on an opportunity when he saw the price of Bitcoin fall)} and ended up recklessly using emergency funds that should not have been used for purchasing. In fact, this was no longer an investment, but a dangerous gamble.

Many people think that DCA should be done when prices fall, as if the focus is on guessing the lowest point, when in fact the essence of the DCA method is a strategy that does not focus on time or price, but is done when discretionary funds are available. When someone recklessly uses emergency funds to buy Bitcoin just because they feel the price is cheap, it shows a lack of preparedness in financial management.

And as you said, we must separate our daily expenses, emergency funds, and investment funds. Without this, no matter how good the strategy is, it will surely fall apart, because purchasing decisions are made based on fear and greed rather than a well thought out plan.

[Joeboy]

You are a bit patronizing Jewan420.

Of course, there are folks with differing levels of experience, and surely a guy who practices more is going to be less likely to make BIG mistakes, yet any person can make mistakes or get disoriented or even come to change his opinion or get lost in his own method or lack of method.

It seems problematic to proclaim that some folks are beyond making mistakes, and even experience persons will sometimes come to learn mistakes that they are making.. and so in that sense each of us needs to try to maintain some humbleness.

Another thing is that some guys learn way faster than others.  Have you ever met someone who you considered to be quite infallible and beyond mistakes. Sure there are some folks who are like that, even though we surely have to try to accept that there are a variety of skills and even a variety of learning speeds and even some folks who repeatedly make simlar mistakes and develop bad habits.

True, indeed no one is immune to mistakes, What however separate a new investor from the older ones is the type of mistake that is been made. Older investors in some times still slip here and there for various personal reasons though. And for some reason some are able to realize their mistakes in time and retrace their step which usually makes this little mistakes that that are less likely to cause any kind of heavy damage to their investment.....Time and experience gotten overtime iss what usually compounds and makes these older investors less prone to making that big mistakes that many newbies make.

[Proty]

We often advise that we should have an emergency fund when investing, but investing using an emergency fund is the exact opposite of what we're always reminded of. So, I agree with you that it's no longer a mistake, but rather a gamble.

We must separate our money based on our allocations, money for daily needs (including bills and other expenses), money for an emergency fund, and money for investments. Don't mix them all up, and that's why we need good financial management. Everything stems from this, and our understanding of this will help us differentiate between them.

There must be many reasons why he did that, but one thing is certain, this situation shows that he lacked patience ^{(afraid of missing out on an opportunity when he saw the price of Bitcoin fall)} and ended up recklessly using emergency funds that should not have been used for purchasing. In fact, this was no longer an investment, but a dangerous gamble.

Many people think that DCA should be done when prices fall, as if the focus is on guessing the lowest point, when in fact the essence of the DCA method is a strategy that does not focus on time or price, but is done when discretionary funds are available. When someone recklessly uses emergency funds to buy Bitcoin just because they feel the price is cheap, it shows a lack of preparedness in financial management.

And as you said, we must separate our daily expenses, emergency funds, and investment funds. Without this, no matter how good the strategy is, it will surely fall apart, because purchasing decisions are made based on fear and greed rather than a well thought out plan.

The mindset behind this is trading. Using emergency funds to buy the dip ,the person is thinking in terms of short term profit. Holding for a while like months or weeks. When they noticed they are in profit they quickly sell and then get the profit. No investors with long time mindset will make this kind of mistake because they won't be able to hold this bitcoin for long since they didn't use discretionary income but rather emergency funds.

[sotelorene]

[edited out]

Emergency cash are meant to stay untouched unless life really throws something unexpected at any one it can be tempting to dip into funds when the market pulls back especially with versatile bitcoin is,

When we are early in our time of building our bitcoin holdings and our emergency funds, it may well be the case that we are tapping into our emergency funds /back up funds because we are still in the process of building up our systems.

We also cannot presume how long it is going to take for guys to build up cashflow management systems.  if guys have a lot of discretionary funds, they can build up their systems fast.  Other guys might take years to build up their systems.

We cannot generalize regarding how an ideal system might look and then presume that everyone can build up to an ideal system from whereever they are starting out, since some guys will take longer than others to get there, and some guys might continuously get knocked out of their system (whether due to their own mistakes or due to complications that they might already have in their lives that are causing demands on their time, energy and money.

This is a fact that most investors often ignore. They feel as though building financial security around themselves is just an overnight exercise. But in reality, this is a process that takes quite a long time with uneven stages to achieve. And it’ll be very unrealistic for anyone to think that there’s an actual universal ideal setup that everyone would arrive on the same timeline.

True, because it makes no sense that a lot of people step into investing expecting quick wins, like pressing a button today and waking up rich tomorrow. But the reality is way different, building real financial security is kidda a lot. And there are good days, bad days, and moments where it feels like you are not moving at all.
And the thing is, everyone journey is different. There is no universal timeline or perfect setup that works for everyone.

That is the hand work of traders their are people that will purchase Bitcoin today and be expecting a bull run in the next day which ordinarily doesn't work that way. Bitcoin has be to accumulated and hold for long because that is when we can actually see the main and actual potential of it and funny enough these folks (traders) some of them already knew that they can not actually make money or boom overnight just like that but yet they keep trying luck that can literally lead them to depression and grieve, but the truth still remains that everyone is responsible for their actions.

[NewRevelation]

Many people think that DCA should be done when prices fall, as if the focus is on guessing the lowest point, when in fact the essence of the DCA method is a strategy that does not focus on time or price, but is done when discretionary funds are available. When someone recklessly uses emergency funds to buy Bitcoin just because they feel the price is cheap, it shows a lack of preparedness in financial management.

And as you said, we must separate our daily expenses, emergency funds, and investment funds. Without this, no matter how good the strategy is, it will surely fall apart, because purchasing decisions are made based on fear and greed rather than a well thought out plan.

The mindset behind this is trading. Using emergency funds to buy the dip ,the person is thinking in terms of short term profit. Holding for a while like months or weeks. When they noticed they are in profit they quickly sell and then get the profit. No investors with long time mindset will make this kind of mistake because they won't be able to hold this bitcoin for long since they didn't use discretionary income but rather emergency funds.

Similarly, what if the market does not work according to there plan of a quick climb in price and they take off there gains, what becomes there stay? What if the price keeps Dipping ? We know that bitcoin is highly risky due to its volatile nature, so predicting the price and hoping it works according to your predictions or wishes are just compounded risk problems and they will suffer it. It's best we calculate properly, invest rightly using the right funds and/or startegies so that we can enjoy our investment experience and of course be able to Hodl for long

[mustapha67]

But on the other hand, sometimes beginners actually don't really care when the increase or decrease occurs because their focus is not only looking at the chart but actually buying as much as possible as long as they can because they still believe that being in bitcoin will be good enough for them even though the initial intention is still only focused on instant profit but I think that is the driving force for them to stay in bitcoin.

Regular buying is called the DCA method, which is ideal for beginners, rather than focusing on price increases and decreases. The method that allows you to buy in both bullish and bearish markets. In this case newcomers must commit to investing for the long term and try their best to keep the commitment. The temptation of instant gain can make them suffer. Because, inexperience with Bitcoin can prove wrong in their market analysis. If they buy and sell bitcoins focusing on immediate gains and facing frequent losses, they may become disillusioned and move away from bitcoins, which is a negative for bitcoins. I never want newbies to lose even a small amount of money from Bitcoin. If they develop negative thoughts about Bitcoin, then we can say that Bitcoin's future may turn to dim. Newbies will drive Bitcoin in the future, the future of Bitcoin depends on them, if they create negative thoughts about Bitcoin then we should be worried about Bitcoin.

As a newbie, regular buying is a basis for commercial survival. Long term investment is a solid plan for future utilization. Therefore, it is important to understand that buying should be a consideration for a long period of time.

As for benefits or gain, it is important to realize that business needs to mature before making profits. A stable business with little profits is better than a new business that crashed after huge profits made.

Again, the issue of the newbies having "negative thoughts"  about bitcoin should be addressed by guiding us on the workable wisdom about bitcoin. Like it was said, the continuation of bitcoin lies with the newbies. It is said that "the young shall grow". Therefore, newbies as the young should be taught, and oriented on bitcoin.

[Obulis]

I will not blame any newbie who is considering Bitcoin as a risk-free investment because it could be that social media has made them believe that Bitcoin investment is a risk-free investmen, but once the newbie comes to a place like this forum or once the newbie starts investing in Bitcoin, he/she will know that Bitcoin investment is not a risk-free investment. Be it rich investors or poor investors, everyone who has discretionary income at the moment can take good advantage of the market and buy Bitcoin in the dip because they can buy big quantity of Bitcoin with a little money.

Not blaming the newbie can be the case but they have part of the blame to bear.
Landing here (Satoshi talk forum), some newbies still want Bitcoin investment to be risk free, the mindset of quick gains will always want it in their favor which should be or is in line with risk free venture but that has not been the case.

Also when you look at the social media space, you will see yourself being fed with that which is fully occupying your mind. If making quick gains has taken charge of someones mind, the investment romance fed on social media will be the best thing ever without need of prove and critical thinking.
When all the above is the case, that means the newbie actually has a blame to bear.

[Obulis]

judging from this perspective of mine we can say that of course of this struggle is probably for a good retirement or more like a perfect retirement place hence in 20 years from some who are at a very age which they highest they can wait is 20 years below while for some guys like me who can go from 20 years and above since we are still young and early in terms of age, by the time of our retirement if things be as it is, because nobody knows the next minute or what will happen to bitcoin in future but if all things be as it is then by 30 to 30 years we (younger guys) will definitely be in the best position with our bitcoin portfolio or investments.

For sure very young guys should have investment timelines that are 20-30 years or more, yet it still does not excuse putting all hope (and all expectations) in one basket.  I think that it is dangerous thinking to put all expectations in one basket, even if you might end up spending a lot of your life with a lot of your time, energies and value placed into bitcoin.. which is likely amongst the best, if not the best of horses to be betting upon.

Putting all eggs in one basket has always failed people leaving some people penniless and some becomes debtors. Planning for retirement and casting all expectations into Bitcoin knowing that Bitcoin is not guaranteed is a red flag (danger).
It is okay, better or best spending great percentage of your time, energies and resources on one of the global best (Bitcoin) not putting all eggs in one basket but putting best eggs in the best basket.

Exactly, it will be a bad idea for an investor to put all hope and expectations in bitcoin. There should always be need for diversification incase of any issues that may come up in the future. Just like you have rightly said investment bitcoin isn't a guarantee that it will be a success at the end of the day . To reduce the impact of risk or minimise loss there should always be need to spread ones assets into different investment.

What kind of diversification do you consider to be necessary?  Are you referring to shitcoins?  Do you think that a person cannot have ONLY bitcoin and cash to start out his investment for maybe several years until he builds up his bitcoin holdings to be 1 year or more of his expenses?  how are you considering this idea of "diversification?"

Maybe you could provide an example, or maybe answer an example?

Of course there are differences if a guy is brand new to investing, or if he had been investing for a while at the time that he comes to bitcoin.

Let's say that a guy had already been living with his parents and is going out into the real world where he is getting his first job and having to support himself.  He does not have any other investments besides bitcoin.  While he was living with his parents he had built up a bitcoin stash.. perhaps 0.12 BTC, and when he goes into the real world, he is going to have a job where he is going to be making around $20k per year, and his basic expenses are going to be around $500 per month... So the guy is thinking that he has around $50 to $100 per week that he could buy bitcoin and to shore up his emergency funds.. Maybe he already has around $1k saved up on "emergency/back up funds".  Should this guy diversify, and if so, how?

If you want to provide a different example, then no problem, go ahead.

Not at all! This diversification can't be into any shit coins. In my opinion, this diversification can be in other sectors like agriculture because one can only have Bitcoin investment in the crypto sector without thinking of any shit coins.

From the analogy you gave of "a guy moving into the real world by himself and doing a job that will pay around $20k yearly but already having Bitcoin perhaps 0.12 BTC" diversification is a very difficult thing to do under such conditions and it's easier to keep BTC accumulation.

[Umulala-alala]

Therefore I believe using emergency funds for investment is a very risky decision. Not because of the fear of losing money in the investment itself, but because of the fear of not having funds available when they are truly needed.

Anyone that takes such a step, by using his or her emergency funds to invest in Bitcoin is no longer investing in Bitcoin but he is gambling with his investment, which might likely cost him in the nearest future, because once emergencies arises and the emergency funds is not available that particular time, he will be forced to sell or temper with his Bitcoin investment to sorts out his the pressing emergency at hand, so this is a risky gamble all Bitcoin investor should avoid by all means.

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

Emergency fund is never to buy bitcoin with, using our emergency fund for BTC purchase is gambling. Emergency fund should be use to sort out real emergency when it occur since it's what comes unexpectedly so the money should for emergency should also be kept ready so we can't sell our bitcoin investment when it's not due time just to settle out our unforseen problem.
Investing in BTC required discretionary income this is the fund use in buying bitcoin, our reserve fund is also an option to buy bitcoin with and definitely not our emergency fund doing this is gambling.

[ultrloa]

Therefore I believe using emergency funds for investment is a very risky decision. Not because of the fear of losing money in the investment itself, but because of the fear of not having funds available when they are truly needed.

Anyone that takes such a step, by using his or her emergency funds to invest in Bitcoin is no longer investing in Bitcoin but he is gambling with his investment, which might likely cost him in the nearest future, because once emergencies arises and the emergency funds is not available that particular time, he will be forced to sell or temper with his Bitcoin investment to sorts out his the pressing emergency at hand, so this is a risky gamble all Bitcoin investor should avoid by all means.

A simple understanding of the word will tell anyone who wants to invest in bitcoin with their emergency fund that their plan is flawed already, bitcoin investment is not an emergency and should not be done with our emergency fund, when we make the mistake of investing with your emergency fund and a real world emergency actually hits you then you wouldn't be able to handle it and when there is no alternative source of money you will be pushed into selling your bitcoin to cover up for your lack of an emergency fund, this is not something a smart investor should do that's why nobody should be investing in bitcoin with their emergency fund.

Emergency fund is never to buy bitcoin with, using our emergency fund for BTC purchase is gambling. Emergency fund should be use to sort out real emergency when it occur since it's what comes unexpectedly so the money should for emergency should also be kept ready so we can't sell our bitcoin investment when it's not due time just to settle out our unforseen problem.
Investing in BTC required discretionary income this is the fund use in buying bitcoin, our reserve fund is also an option to buy bitcoin with and definitely not our emergency fund doing this is gambling.

Its not a smart move to use their emergency fund for investment this fund is should be separate from their investment. Much better if they have it in for of fiat and never convert it to Bitcoin so they will not get tempted to touch it and can immediately use it when there's emergency situation happens.

Better for people to always look at their discretionary funds when for investment if they don't have anything left at that time then better pause for awhile and they should never think about touching their emergency funds since this will create a huge trouble to them that might cause failure if it happens that there's emergency situation occur. They don't need to be so greedy with their investment and better they follow their financial capabilities also set plan to avoid facing serious issues.

[ejikeme24]

Not at all! This diversification can't be into any shit coins. In my opinion, this diversification can be in other sectors like agriculture because one can only have Bitcoin investment in the crypto sector without thinking of any shit coins.

From the analogy you gave of "a guy moving into the real world by himself and doing a job that will pay around $20k yearly but already having Bitcoin perhaps 0.12 BTC" diversification is a very difficult thing to do under such conditions and it's easier to keep BTC accumulation.

It is not a must for everyone to diversify, one thing we should know is diversification need to take place after we must have reach the status of overaccumulation in our Bitcoin investment because I see no need of looking into diversifying when we have not save enough Bitcoin in our portfolio. For me I would pay more attention in building my Bitcoin portfolio to the right standard before looking forward into diversifying into other business/ or investment.

Those who are just getting started with Bitcoin investment is not even supposed to talk about diversification for now because it is obvious that they have not even getting to the middle of their accumulation journey talk more of getting to the status of overaccumulation. In this case i will urge those who are just getting started and those that have just accumulated for some year probably 1-2 years to give undivided attention to their Bitcoin investment and still forget about diversification because they still have a Long way to go.

[JayJuanGee]

judging from this perspective of mine we can say that of course of this struggle is probably for a good retirement or more like a perfect retirement place hence in 20 years from some who are at a very age which they highest they can wait is 20 years below while for some guys like me who can go from 20 years and above since we are still young and early in terms of age, by the time of our retirement if things be as it is, because nobody knows the next minute or what will happen to bitcoin in future but if all things be as it is then by 30 to 30 years we (younger guys) will definitely be in the best position with our bitcoin portfolio or investments.

For sure very young guys should have investment timelines that are 20-30 years or more, yet it still does not excuse putting all hope (and all expectations) in one basket.  I think that it is dangerous thinking to put all expectations in one basket, even if you might end up spending a lot of your life with a lot of your time, energies and value placed into bitcoin.. which is likely amongst the best, if not the best of horses to be betting upon.

Putting all eggs in one basket has always failed people leaving some people penniless and some becomes debtors. Planning for retirement and casting all expectations into Bitcoin knowing that Bitcoin is not guaranteed is a red flag (danger).
It is okay, better or best spending great percentage of your time, energies and resources on one of the global best (Bitcoin) not putting all eggs in one basket but putting best eggs in the best basket.

Exactly, it will be a bad idea for an investor to put all hope and expectations in bitcoin. There should always be need for diversification incase of any issues that may come up in the future. Just like you have rightly said investment bitcoin isn't a guarantee that it will be a success at the end of the day . To reduce the impact of risk or minimise loss there should always be need to spread ones assets into different investment.

What kind of diversification do you consider to be necessary?  Are you referring to shitcoins?  Do you think that a person cannot have ONLY bitcoin and cash to start out his investment for maybe several years until he builds up his bitcoin holdings to be 1 year or more of his expenses?  how are you considering this idea of "diversification?"

Maybe you could provide an example, or maybe answer an example?

Of course there are differences if a guy is brand new to investing, or if he had been investing for a while at the time that he comes to bitcoin.

Let's say that a guy had already been living with his parents and is going out into the real world where he is getting his first job and having to support himself.  He does not have any other investments besides bitcoin.  While he was living with his parents he had built up a bitcoin stash.. perhaps 0.12 BTC, and when he goes into the real world, he is going to have a job where he is going to be making around $20k per year, and his basic expenses are going to be around $500 per month... So the guy is thinking that he has around $50 to $100 per week that he could buy bitcoin and to shore up his emergency funds.. Maybe he already has around $1k saved up on "emergency/back up funds".  Should this guy diversify, and if so, how?

If you want to provide a different example, then no problem, go ahead.

Not at all! This diversification can't be into any shit coins. In my opinion, this diversification can be in other sectors like agriculture because one can only have Bitcoin investment in the crypto sector without thinking of any shit coins.

From the analogy you gave of "a guy moving into the real world by himself and doing a job that will pay around $20k yearly but already having Bitcoin perhaps 0.12 BTC" diversification is a very difficult thing to do under such conditions and it's easier to keep BTC accumulation.

For sure, each guy is in a different place, and surely if a person is just starting to earn an income, and maybe he is not planning to go to college4, so then he might have some vision of jobs that are available to him and his promotion prospects, and yeah, if he is starting out with 0.12 BTC and he has a $20k income with ONLY around $6k per year of basic expenses, then he has quite a bit of discretionary income to work with, yet he still might not want to invest into anything other than bitcoin and cash.. and then perhaps after a few year of building his bitcoin investment, then maybe he might want to consider if he might want to diversify?  Yet, even with his current income status, it might take him close to 10 years to reach 0.5 BTC... and, there might still be some needs to figure out the guys goals.. and even with his job how much does he expect to be making in 10 years and how much would he expect to make if he were to get at fuck you status.  If he might be able to get close to 1 BTC in 10 to 15 years, he might have enough for fuck you status.  

Yet maybe at some point prior to reaching fuck you status, he might consider if there might be ways that he might want to diversify.  It can be difficult to project out what another person might want and/or their abilities to continuously accumulate bitcoin under their current income status and surely someone who is in their early 20s can have quite a bit change within 5 to 10 years time depending on hif he keeps working in similar kinds of owrk or maybe he changes the kind of work that he does.  Relationships and the building of family can come into the mix too.. .which can also change some of the logistics in regards to the money and/or how much money is needed for basic expenses.

[Tungbulu]

Not at all! This diversification can't be into any shit coins. In my opinion, this diversification can be in other sectors like agriculture because one can only have Bitcoin investment in the crypto sector without thinking of any shit coins.

From the analogy you gave of "a guy moving into the real world by himself and doing a job that will pay around $20k yearly but already having Bitcoin perhaps 0.12 BTC" diversification is a very difficult thing to do under such conditions and it's easier to keep BTC accumulation.

For sure, each guy is in a different place, and surely if a person is just starting to earn an income, and maybe he is not planning to go to college4, so then he might have some vision of jobs that are available to him and his promotion prospects, and yeah, if he is starting out with 0.12 BTC and he has a $20k income with ONLY around $6k per year of basic expenses, then he has quite a bit of discretionary income to work with, yet he still might not want to invest into anything other than bitcoin and cash.. and then perhaps after a few year of building his bitcoin investment, then maybe he might want to consider if he might want to diversify?  Yet, even with his current income status, it might take him close to 10 years to reach 0.5 BTC... and, there might still be some needs to figure out the guys goals.. and even with his job how much does he expect to be making in 10 years and how much would he expect to make if he were to get at fuck you status.  If he might be able to get close to 1 BTC in 10 to 15 years, he might have enough for fuck you status.  

From my own perspective, I believe the most important point that’s worth noting here is that, the person you’ve just described above is pretty much in a stronger financial position than it may actually seem at first glance. One who has a low income may find it very difficult to automatically limit long term potential if their expenses are extremely low and savings capacity on the other hand is pretty high. As a matter of fact, this kind of combination creates a kind of freedom that very few people enjoy early in life.

I wouldn’t really consider getting started with Bitcoin and cash as the only investment as a flaw, I’d rather view it as an intentional strategy for a newbie who’s still tryna figure out their long term goals. For folks who are early in their earning years, it’s always way more safer to keep things simple as this helps protect them from the distractions,  complexities and mistakes that often comes with spreading oneself too thin. Bitcoin on the one hand is already sure of giving an asymmetric upside, while the cash buffer on the other hand gives peace of mind. And this stability is often way more important to a newbie than attempting to diversify when they are not yet even fully familiarized with the market.

At the point, consistency is often where the leverage comes in. Even if he needs one full decade to raise 0.12 BTC to around 0.5 BTC, the exact timeline becomes less important as the main focus remains the habit cultivated by the investor during this period. An investor who saves continually, invests continually, and manages to keep their expenses low is most likely to achieve and accomplish way more over a ten years timeline than another person who earns way more but lacks the structure. And by the time he gets to 10 to 15 years in, a single Bitcoin becomes more realistic, especially if his income also grows along the way too.

And lot of investors often feel like reaching a “fuck you status” is just about how much bitcoin you’ve been able to pile up during your journey. But what they fail to realize is that it’s more about the combination of a modest lifestyle, consistent compounding and a growing income. One bitcoin is only able to give one serious leverage if he keeps their cost of living lightweight. Again, if he continues to develop his skills and increase his earning power, and most importantly, continue to maintain the same discipline, then it’ll be easier for him to reach a point of financial flexibility.