Balancing Financial security and Bitcoin Accumulation

[HodlPlanet]

People that investing in bitcoin should be constantly be aware that such that money should be left alone for years, at least a cycle, and not less than that.

If then they cannot handle such idea then they should not even be investing in bitcoin.

Which is why people should invest with discretionary income as it is only what can make you to leave it for a long haul. Investing with any money other than discretionary income usually end bad in regrets.

Yes people that intend to invest in bitcoin for a long term they should have this in mind that they  won't have access to the money till  have reached there investment timeline. With this they will have a good understanding why it is advisable to invest in bitcoin using discretionary income rather than money that we will needing for our daily expenses. If our discretionary income is locked for years it won't affect us or we wont be pushed to temper with our investment but if it is money that we will be needing, whenever the need arise we will be force to fall back to our bitcoin investment.

One thing to keep in mind very clearly is that this investment is not liquid until the investment deadline is met. That is why it is not reasonable to invest in Bitcoin for daily expenses, emergency funds or near future needs, but only discretionary income. The money that will not affect our lifestyle even if it is stuck for a few years should be invested in Bitcoin. If we do not have mental stress about the investment money, then short term fluctuations in the market will not affect our emotions and we will be able to avoid making wrong decisions. But if the money we need goes into the investment, then we will be forced to break the investment in any emergency or a slight decline in the market, which is completely contrary to the long term strategy.

[JayJuanGee]

[edited out

Not at all, I am not a shitcoiner. I was trying to give a level ground for anyone who wants to diversify and trying to see diversifying into personal business as part of diversification to help grow Bitcoin assets for low income earners particularly, but that made me sound like a shitcoiner as perceived. Also when I said halving accumulation target I really meant there was getting to the halve of the target, like let's say the target is 1 BTC so getting to 0.5 BTC.

Great that diversifying is likely a tool to preserve Bitcoin wealth rather than to grow it. In the crypto space, it is Bitcoin or nothing, so no chance for shitcoining.

Guys will sometimes invest in businesses or in their education and/or training as potential ways in which they would be able to increase their income (and their income from their labor), and the extent to which those kinds of investments are going to end up paying off could be unclear, yet young people make those kinds of choices frequently, since surely there could be cases in which increasing one's income could result in way better life conditions rather than staying focused on buying bitcoin and retaining mediocre and potentially even low paying and dead end jobs.

Even older people might come across potential training and/or job opportunities that even potentially seem to come available based on their having had built up some bitcoin capital - and so sometimes those perceived "opportunities" might mere end up being distractions or even diversions from ongoing building of the bitcoin holdings, so there are cases where guys end up selling too much of their bitcoin too soon based on getting lured into inferior places to put their money, which could end up contributing to their never reaching their bitcoin accumulation goals based on their diluting too much of their bitcoin holdings and selling way too much bitcoin too soon in order to pursue what ends up being inferior "opportunities."

None of us can judge for someone else, including when some guys end up selling way to many coins too soon because they consider residential property ownership to be an investment rather than a place that is going to suck a lot of value that might not be worth it in terms of the quantity of BTC that they might need to sell in order to "get into it," and sometimes a delay of 1-2 cycles before using some of their BTC for residential property might be a better choice where guys might be able to end up selling only 10% to 20% of their bitcoin stash and ending with much more BTC rather than selling 90% or more of their stash and ending up as a low coiner or even ending up as a no coiner.

And, yeah, in times like these when bitcoin prices have been dropping a lot, including difficulties for many or any folks who had invested in the past 1-2 years to be in any kind of significant profits, then some guys might end up losing sight in regards to continuing to put money in bitcoin and to maintain their prioritizing of the ongoing building of their bitcoin investment.

It can be difficult, and sometimes a person ends up feeling that he needs to reduce the amount of bitcoin that he is buying because he feels that he is running out of money.. which might be part of the justification that guys should ongoingly attempt to just invest consistently in bitcoin with a certain portion of their discretionary income and perhaps putting equal amounts into their bitcoin investment, their back up funds and their discretionary consumption.  (something like 33% of their discretionary income in each of the three categories? perhaps?)

[edited out]

One thing to keep in mind very clearly is that this investment is not liquid until the investment deadline is met. That is why it is not reasonable to invest in Bitcoin for daily expenses, emergency funds or near future needs, but only discretionary income. The money that will not affect our lifestyle even if it is stuck for a few years should be invested in Bitcoin. If we do not have mental stress about the investment money, then short term fluctuations in the market will not affect our emotions and we will be able to avoid making wrong decisions. But if the money we need goes into the investment, then we will be forced to break the investment in any emergency or a slight decline in the market, which is completely contrary to the long term strategy.

I don't really disagree with any of the points that you seem to be making, even though the concept of an investment deadline comes off as a strange way of expressing what guys might be shooting for?

Would the "investment deadline" be within a date range? or does it have some other criteria?

How would you propose that a guy considers his "investment deadline," and then once his "investment deadline" is reached, then what does the guy do in regards to his bitcoin investment at that point?

[Mehmet69]

People that investing in bitcoin should be constantly be aware that such that money should be left alone for years, at least a cycle, and not less than that.

If then they cannot handle such idea then they should not even be investing in bitcoin.

Which is why people should invest with discretionary income as it is only what can make you to leave it for a long haul. Investing with any money other than discretionary income usually end bad in regrets.

Yes people that intend to invest in bitcoin for a long term they should have this in mind that they  won't have access to the money till  have reached there investment timeline. With this they will have a good understanding why it is advisable to invest in bitcoin using discretionary income rather than money that we will needing for our daily expenses. If our discretionary income is locked for years it won't affect us or we wont be pushed to temper with our investment but if it is money that we will be needing, whenever the need arise we will be force to fall back to our bitcoin investment.

One thing to keep in mind very clearly is that this investment is not liquid until the investment deadline is met. That is why it is not reasonable to invest in Bitcoin for daily expenses, emergency funds or near future needs, but only discretionary income. The money that will not affect our lifestyle even if it is stuck for a few years should be invested in Bitcoin. If we do not have mental stress about the investment money, then short term fluctuations in the market will not affect our emotions and we will be able to avoid making wrong decisions. But if the money we need goes into the investment, then we will be forced to break the investment in any emergency or a slight decline in the market, which is completely contrary to the long term strategy.

Yes, you are right. We should invest in Bitcoin through discretionary income. But most new investors do not understand this. They think it is very difficult to extract discretionary income from their daily income. We will start with very small. Because for small investors like us, we cannot afford to start investing with one or two Bitcoins. So we can start investing from very small.

The little amount of money that is left after our daily expenses is discretionary income. From this discretionary income, we can save some money for emergency fund and start investing in Bitcoin with the remaining money. This remaining money is our main discretionary income. With which we will not face any danger even if we do not decide to invest for a long time of 8 to 10 years. Discretionary income is a very small and beautiful residual. If we extract it correctly, we will never have to sell our investment in an emergency.

[Joeboy]

Basically, this only creates negative potential, we have to hold on until the goal we set is met, and to be fully qualified in this regard, we first have to ensure discretionary income, if we invest through discretionary income, there is very little chance of being forced to sell unexpectedly, because in unexpected times we will only be forced to sell when the invested money is necessary for us. But when we are sure about this in advance, we will not be forced to sell under any circumstances, but we also have to pay attention to the emergency fund, because having this emergency fund ensures protection for us in any unexpected situation.

Considering how volatile Bitcoin is, it is even infact very difficult to get any kind of profit from it in the short term, that is why I usually pity those folks that are hell bent on ruining their portfolio by going about trading Bitcoin..It seems very useless to me for folks to trade/ sell before their investment investment timeline... Even though folks can does anything that pleases them since it is there money, I still like suggesting that folks stop the habit of always selling their Bitcoin if they haven't reach overaccumulation, their target should be to hold their Bitcoin, while still accumulating for nothing less than 4-10yrs+

[Qhunman]

Considering how volatile Bitcoin is, it is even infact very difficult to get any kind of profit from it in the short term, that is why I usually pity those folks that are hell bent on ruining their portfolio by going about trading Bitcoin..It seems very useless to me for folks to trade/ sell before their investment investment timeline... Even though folks can does anything that pleases them since it is there money, I still like suggesting that folks stop the habit of always selling their Bitcoin if they haven't reach overaccumulation, their target should be to hold their Bitcoin, while still accumulating for nothing less than 4-10yrs+

Trading is not the ideal way to go about investing in bitcoin because in the end you might not get your capital and profits back.  It is riskier and less profitable. Folks who dive into trading may have been lure into it by people who introduce them to bitcoin. So because of that they thought trading is Idea way to make profits from bitcoin. Experience is the best teacher,maybe after they start experiencing loses and Smaller profits, they would realise how risky and unproductive trading bitcoin can be. After discovering truth through the hard way they would stop trading bitcoin and Start investing in bitcoin over the long term

[cocadalcan]

Basically, this only creates negative potential, we have to hold on until the goal we set is met, and to be fully qualified in this regard, we first have to ensure discretionary income, if we invest through discretionary income, there is very little chance of being forced to sell unexpectedly, because in unexpected times we will only be forced to sell when the invested money is necessary for us. But when we are sure about this in advance, we will not be forced to sell under any circumstances, but we also have to pay attention to the emergency fund, because having this emergency fund ensures protection for us in any unexpected situation.

Considering how volatile Bitcoin is, it is even infact very difficult to get any kind of profit from it in the short term, that is why I usually pity those folks that are hell bent on ruining their portfolio by going about trading Bitcoin..It seems very useless to me for folks to trade/ sell before their investment investment timeline... Even though folks can does anything that pleases them since it is there money, I still like suggesting that folks stop the habit of always selling their Bitcoin if they haven't reach overaccumulation, their target should be to hold their Bitcoin, while still accumulating for nothing less than 4-10yrs+

I agree with you. Those who are keen to trade Bitcoin are traders and as such are equivalent to seasonal traders. They are mostly involved in gambling with funds and incur losses. If traders are properly aware of the volatility of Bitcoin price, they will not take the risk of trading. It would be a right decision to turn long term investment thinking into action rather than skipping the risk due to lack of knowledge and expecting high profits.
One thing I would like to add to the advice you have given is to maintain an emergency fund to keep Bitcoin accumulated for a long time. This fund will prevent you from selling Bitcoin in times of emergency. You will be able to easily meet your investment ambition.

[Saltysugar99]

Not at all, I am not a shitcoiner. I was trying to give a level ground for anyone who wants to diversify and trying to see diversifying into personal business as part of diversification to help grow Bitcoin assets for low income earners particularly, but that made me sound like a shitcoiner as perceived. Also when I said halving accumulation target I really meant there was getting to the halve of the target, like let's say the target is 1 BTC so getting to 0.5 BTC.

Great that diversifying is likely a tool to preserve Bitcoin wealth rather than to grow it. In the crypto space, it is Bitcoin or nothing, so no chance for shitcoining.

When I think about diversifying my investments, this is what comes to mind.

https://x.com/i/status/2013519471462224192

[abaeze]

Not at all, I am not a shitcoiner. I was trying to give a level ground for anyone who wants to diversify and trying to see diversifying into personal business as part of diversification to help grow Bitcoin assets for low income earners particularly, but that made me sound like a shitcoiner as perceived. Also when I said halving accumulation target I really meant there was getting to the halve of the target, like let's say the target is 1 BTC so getting to 0.5 BTC.

Great that diversifying is likely a tool to preserve Bitcoin wealth rather than to grow it. In the crypto space, it is Bitcoin or nothing, so no chance for shitcoining.

When I think about diversifying my investments, this is what comes to mind.

https://x.com/i/status/2013519471462224192

Don't implement what comes to your mind, because you don't seem to understand what diversification means. Diversification does not mean investing all your assets in one place. Even if it is invested in a 100% safe place.

Most new investors misunderstand the concept of diversification and make the wrong decision and lose all their investment, turn away from the investment and end up ending before they even start. Investing in Bitcoin and investing in other cryptos is not the same thing, because most of the altcoins or shitcoins in the market are scams and very volatile, but Bitcoin is different. But even then, it is not right to invest all your assets in one place because if the investment fails for some reason, it is all over.

Many people understand investing in Bitcoin and other cryptos as diversification, which is another kind of fraud, diversification does not mean just dividing money in multiple places, but rather spreading investments in different and unrelated asset classes from each other, so as to reduce risk.  For example, investing in land or real estate and investing in Bitcoin at the same time is a type of diversification. Investing in a crop and spending time on your own business or job at the same time is a type of diversification. In other words, investing in different/separate types of businesses while investing is what truly means diversification in investment. Hopefully, the matter is now clear.

[Futurexxx]

When I think about diversifying my investments, this is what comes to mind.

https://x.com/i/status/2013519471462224192

As far as this digital space is concern, their is no diversification because Bitcoin is second to none. No other assets can replace Bitcoin if Bitcoin is absent. Puting your money in other digital asset are not investment because when talking about them, it's just a matter of which one is less shitty than the other, besides why thinking of diversification when you have not gotten to your over accumulation status?
It's only when you have gotten to your over accumulation status that it's advisable to diversify, and when doing that, you should be diversifying into land, gold or real estate, not shit coin or alt coin that are full of shit.

[The Founding Titan]

[edited out]

I personally do not think that the first guy is in that much of a disadvantage, he gets $1k in discretionary income every month and also $1k worth of backup funds too, if he is interested in bitcoin then he has a pretty good starting point as long as he is not willing to be distracted by the idea of diversifying, he is new to investment so he should be more focused on what's considered the biggest asset right now which is bitcoin, he could also definitely save up for emergency with the same discretionary income while also investing at the same time, that way his investment plan isn't delayed and he is also making sure that an emergency situation in the future doesn't put him in between a rock and a hard place.

The second guy though already has $45k worth from all the other investments he did in the last decade with about 5 months worth of backup fund already saved to tackle unexpected complications that might come up, assuming he still has about $1k of discretion income every month then he is in a better position to be aggressive with his bitcoin investment (though he would have most likely been in a better position financially if he had been investing in bitcoin especially with how much growth bitcoin has experienced in the last decade, he would have invested the same amount but his bitcoin assets would have most likely been worth more than $45k) his aggressiveness will be coming from the fact that he already has his back funds ready so he doesn't have any problems with emergency fund and he already is an experienced investor with 10 years with of knowledge (even though it was outside of bitcoin)

How does the second guy treat his $45k that is in other investments?  Does he continue to invest in them?  Does he move some or all of that to bitcoin? He does not have any bitcoin right now.  Maybe he wants to get to fuck you status in 15 years or so? How would he do that? Could that be possible?

That will be his choice, I already said it would have been more profitable if he had already been investing in bitcoin rather than going into a different asset from the start but maybe he didn't know about bitcoin at the time (just giving him the benefit of the doubt) but now that he finally wants to start investing in bitcoin he could lump sum with a certain percentage of the $45k or even all of it, there are certainly people who could do that if they wanted to or he could just decide to start investing with his $1k monthly discretionary income which is also very much likely to have increased beyond $1k since he has already been working for a decade, a promotion or an increased pay could have increased his discretionary work maybe not, but we are still assuming that he is still working with $1k discretionary income every month, so if he is investing with that on a weekly basis then he would be investing around $50k every year and in 15 years he would already have put in over $750k into his bitcoin investment with he himself being around 50 at the time that's not a very bad place to be, no one knows if and how bitcoin would have grown in that time but it's safe to assume with what's happened in the past 15 years of bitcoin that his stash would be worth at least double that amount possibly even more (all of this is assuming he was investing the entire $1k monthly discretionary income into bitcoin and if we consider the possibility that his discretionary income might have increased in that 15 years timeframe with which if he had increased the amount he invests with then he will be ending up with more than he did if he just stuck to $1k) so while he would have still been better off starting with bitcoin from when he was 25 which would had given him 25 years in bitcoin investment his 15 years would still give him a good shot at over accumulation depending on how bitcoin's price moves.
Lump summing the $45k would also give him an added advantage of he is willing to do it.

[Merit.s]

Of course the second guy has more flexibility in what he can do based on his having had already built up an investment portfolio and built up his back up funds, yet he still doesn't have any BTC and he is 10 years older than the first guy, too... so he does not have as much time to build up his bitcoin holdings and/or other aspects of his investment portfolio as compared with the first guy.  Where do you think that the second guy wants to be by the time he is in his 50s or in his 60s? presuming that potentially he is able to keep his job for a bit more time while he is building the bitcoin portion of his investment portfolio.

I am just coming back to this thread. Back to your question about the second guy. He already has a backup funds built of ($7500) which is 5 months of his monthly expenses. I believe that $7500 will serve as his emergency funds since it's more than three months of monthly expenses. Since his discretionary income is $1k and does not need to start building his emergency funds but focus only on building his bitcoin investment.

He can put $900 in bitcoin and use $100 for his discretionary consumption. If I was the guy, I will use $750 to DCA whenever, I get paid and keep $150 to build my reserve funds for buying at the dip. When my reserve funds is set up, I will DCA aggressively with $900 overtime and will top up my emergency funds to six months with time.

[Female King]

Not at all, I am not a shitcoiner. I was trying to give a level ground for anyone who wants to diversify and trying to see diversifying into personal business as part of diversification to help grow Bitcoin assets for low income earners particularly, but that made me sound like a shitcoiner as perceived. Also when I said halving accumulation target I really meant there was getting to the halve of the target, like let's say the target is 1 BTC so getting to 0.5 BTC.

Great that diversifying is likely a tool to preserve Bitcoin wealth rather than to grow it. In the crypto space, it is Bitcoin or nothing, so no chance for shitcoining.

When I think about diversifying my investments, this is what comes to mind.

https://x.com/i/status/2013519471462224192

If all your investment is just in bitcoin then that is not diversification, diversifying means going into other kind of investment and for an investor to diversify it means he is comfortable with his bitcoin investment without struggling to invest in bitcoin or they have reached to their bitcoin accumulation point then they can choose to diversify.