Yeah for real, most of them are so annoying, they didn’t even come to understand Bitcoin, they just came chasing quick flips and when it did not go their way, boom… they start calling it scam..
Truth is, anything that actually builds wealth takes a lot of time, patience and also discipline. But once greed enters, logic will just disappear.. Can’t be blaming Bitcoin for a mindset problem to be honest..
People that come to bitcoin so they can flip their money for profit have shortterm mind so they cannot last long in bitcoin because of how afraid they will get if they encounter volatility.
Nothing good can come from person trying to fool theirselfs and outwitting the market because of the little gain they want to get. Consistent return only come from long term ongoing investment
The worse is when one is not well equipped with the right knowledge. Rather to be in such position (trading for shortterm profits without solid knowledge), just stick with bitcoin investment (holding for long ), which is quite safer than trading , though it has its own risk (cause there’s nothing like risk free investment), but the risk can be easily managed, especially those that understand how bitcoin investment works , like knowing how to allocate your money when come to investing .
The best way to mitigate risk is with position size, and so choosing an amount that you can afford to lose, whether that is $100 per week, $10 per week or some other amount....
So, surely one of the problems might come if the investment is greatly in profits, and there are temptations to tap into it.
Otherwise for guys who have not even been in bitcoin a whole cycle, there is likely not a lot of profits, and probably a need to just keep buying and to figure out an amount that is able to be put in on a weekly basis and is not either emotionally or financially bothersome.
I repeat that depending on the increase in physical assets, it may be a good decision to withdraw part of the profit at the end of one or more cycles and increase physical assets.
This is not a wise decision, and we should refrain from doing such now or later in the future because we are still in our accumulation stage, and it's even more unwise to do such if you are a low coiner that is still far behind in his or her accumulation journey, besides do you think that the physical asset you wanted to invest in can be more profitable than bitcoin?
Statistically, in the past ten years, Bitcoin is actually the most profitable asset to invest in out there, so why killing your accumulation drive for something that wouldn't even give you as much revenue as Bitcoin later in the future?
My advice is that you should retrace your step because it's not a wise decision.
Profit withdrawal, profit this and profit that has been the reason why some investors don't concentrate in their accumulating or to even know that they need to give much attention to their Bitcoin accumulation than talking some shit about taking profit, what's one or more cycle as cxtreenal said, just 8years, so he's trying to tell us that 8 years is enough for people to withdraw, so he can advise an investor to accumulate and withdraw profit in those number of years even though they are at their accumulation stage, that's not right, I think that looks like a short term mindset and shouldn't be encourages, Bitcoin investment is not for short term and that should always be in our mind.
Do you want to use an example of a guy who had been investing in bitcoin for 8 years? Let's give it a shot, and try to figure out where such a guy might be right now?
Let' say that we have a guy who was in his early 30s in 2018, so right now he i about 40 years old. He had an income of about $30k per year for the last 8 years, and o he had been guying around $100 per week of bitcoin (17.33% of his income.
Accordingly, in March 2018, he started buying $100 per week, and until now he invested $42k and he has accumulated 2.7 BTC. Perhaps hi initial goal was to be able to stop his work and to withdraw $80k per year.
Right now, 2.7 BTC would ONLY get him right around $14k per year of income, which would be right around $1,200 per month (the
time-based sustainable withdrawal tool is not working correctly right now, but the formula right now is to multiply the BTC by the 200-WMA - which is currently right around $59,200 and then to potentially withdraw yearly up to 10% of that amount as long as the BTC price is at least 25% above the 200-WMA.. which is not that case right now). Surely, that is not a bad amount of money, but it is not anywhere near his goal, and if he start to withdraw from his bitcoin early it may well have good chances of slowing him down in his goal.
An alternative way of withdrawing (other than time based) is price based, yet even that is not advisable prior to reaching overaccumulation status, yet even that should be reserved for when the BTC price is going up.. and perhaps some limited withdrawal formulas could be employed as the price is going up, such as withdrawing less than 10% every time the BTC price doubles, yet if the guy is still accumulating, he would be buying out of one hand and selling out of the other, which does not seem a great way of managing bitcoin holding. Here are some
ideas on time-based sustainable withdrawal.
Guys can set their goals however they like, yet if they are withdrawing when the price is going down and/or withdrawing way before they are even close to overaccumulation status... they are likely quite undermining their bitcoin holdings, and even if they are losing confidence in bitcoin, they are likely better off to just hold through this period if they are not ready, willing and/or able to continue to buy.. but yeah people can do what they like.. and surely there are a lot of weird things going on with bitcoin and various other macro assets right now based on global power plays and uncertainties.. which also does not seem to be a justification to sell bitcoin, even if a person might be worried about current global happenings.
I repeat that depending on the increase in physical assets, it may be a good decision to withdraw part of the profit at the end of one or more cycles and increase physical assets.
Tapping from the profit of your bitcoin investment to buy a physical asset isn't worth it because I believe bitcoin will do better in price in future than any physical asset that you sold part of your bitcoin for.
Instead, of tapping profits from your bitcoin investment why not stop your bitcoin investment and channel your discretionary income into that physical asset. However, we have our own choices to make since it's our funds. It's better to reach 50% amd above of your bitcoin target before diversifying into other asset.
You will gradually reach the stage of overaccumulation after completing two or three cycles of Bitcoin accumulation and at that point it would be fair if you withdraw some of the profits from Bitcoin to increase your physical assets. If someone does not do this, they may have liquidity of assets so their need to get profits from Bitcoin may be very limited.
If some of them want to continue accumulating Bitcoin continuously, they can if they have discretionary income available. But if you have the mental preparation that you will only accumulate wealth but not consume it, it may be a different matter. No one can predict the future value of Bitcoin. No one has the ability to predict where the value of Bitcoin will go in 10 years. Be self-critical in investing and make realistic decisions and accumulate Bitcoin through discretionary income and DCA method. You need to remember this important point that your long term attitude towards Bitcoin investment depends on the growth of physical assets in the future.
Even my other example above, there is a presumption of 17.3% investment over 2 cycles (8 years) which may well be quite a bit more aggressive than most people are able to accomplish.. many people struggle to consistently invest 10% of their income, and if they are not consistently accumulating (and also at the same time, "taking profits" from time to time, they may well undermine whatever progress that they might have had made when they had been accumulating in earlier times.
So, getting to a point of comfort in bitcoin is likely a product of both how much BTC has been accumulated and also the extent to which the bitcoin price ends up appreciating, which is not guaranteed (as you mentioned). A guy can choose his level of aggressiveness whether 5%, 12%, 17% or some other amount, but then if he is taking money out of his bitcoin investment when he probably should be putting money in, then the amount of his bitcoin accumulation may well would have had ended up going way lower, and it tends to take a real long time to build up a bitcoin investment portfolio, whether 2 or 3 cycles or longer for some who might be even more limited in how much bitcoin they are able to buy on a regular basis. Sometimes it would be better for guys to invest into bitcoin at lower percentage amounts, so that they don't feel drawn towards tapping into their bitcoin at seemingly wrong (and premature) times.
There is nothing that we can really do if guys end up making mistakes and over doing their investment into bitcoin when they thought that they were investing within their tolerance levels. Each of us likely has a responsibility to invest in such a way that we don't end up feeling that we have to change our investment approach based no our own feelings of prematurely "taking out profits" that may well have good chances of becoming regrets down the road.
