Should I depend solely on Bitcoin?

[Ever-young]

You must have a portion of your wealth in FIAT money. You had to move easily for paying live expense, fees, local taxes.
If you can just have this portion ready to be used and for the rest you use btc... this is the perfect setup.
Of course, its much better that people invest money only when they feel safe for storing in that way. Otherways yoy will not like the experience...

That portion of you decide to put have in fiat is called a backup fund, and back up funds are characterised in 3, the emergency funds, reserve funds and the float funds, these funds are essentially built to cover live expenses just as you called it earlier. Although there are certain things one should take care of first before thinking about leaving funds in Bitcoin, essential expenses should be covered first, like food and other essential expenses,then after taking care of those expenses, you can put aside a percentage of  your income for backup and whatever that's left could be used to purchase Bitcoin, that way you'll have cushion to protect your Bitcoin investment whenever future emergencies or expenses arise.

[Hatchy]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

It depends on how much you have been able to profit from your bitcoin investments. Alot of people who bought bitcoins at the very early stage and held till now without touching their coins would probably be able to spend their profits.. If its able to cover up all their expenses and give them a good life, they can choose to depend on it.. but it's advisible to get some investment aside bitcoin so you would be able to make extra income even if you choose not to do some physical work.. it can be an only investment or other crypto investments as well..

[Franctoshi]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

Not everyone would be as lucky as your friend to get into the market at the right time. Using myself as an for instance, back then I bought Bitcoin at the top in 2017, where the market happens to tank my money. I was a total newbie in the space, and I had to sell at a loss, so I wouldn’t advise anyone to quit his or her business because they just made success or some money from their Bitcoin investment. In as much as the Bitcoin market is still a volatile one, except if it isn't a business that they love. Secondly, it's good to put eggs in one basket, but the earnings from their Bitcoin investment should rather be put into the business in quote and to expand it the more. Lastly, he should set aside emergency funds to avoid being tempted to sell when there's a market bloodbath.

[Su-asa]

Well your friend is into crypto currency but it I may ask, what category is he into? Crypto trading or Bitcoin investment? And when did he start it that just know he's already in success? Actually we all know that investing into crypto currency will make you become successful but it's not guarantee. The only way an investor can become successful through Bitcoin investment is unless the investor have invested for a long term (maybe one Bitcoin circle).

[GigaBit]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

I support your idea. If you rely only on Bitcoin, you will have to be under financial pressure. Bitcoin may give you a lot but there is no certainty of it. So it can never be reasonable to rely on such an uncertain platform. There are many who have invested in other places besides investing in Bitcoin. It should be remembered that putting all their eggs in one basket is risky. If an investor invests some of his money in real estate or any other asset after investing in Bitcoin, then he can be risk free. Even if Bitcoin falls today, all other assets will not fall at the same time. The investor must consider his risk and quickly diversify his assets.

[SOKO-DEKE]

Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

That is the fact. it is not a good idea for someone to invest in one particular thing because if anything later happens to that investment, all the person's money will be gone. So, it's not really safe to invest in just one way. Diversification is very important because when someone invests in different ways, if one investment does not go well, the others will act as a backup. So, relying only on Bitcoin as your sole investment is not ideal. Someone can invest in Bitcoin and also invest in physical assets like land, real estate, and so on. In fact, when it comes to Bitcoin investments, it's better to invest what you can afford to lose, so that even when the Bitcoin price drops, someone won't panic and feel the need to sell.

[uchegod-21]

Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

That is the fact. it is not a good idea for someone to invest in one particular thing because if anything later happens to that investment, all the person's money will be gone. So, it's not really safe to invest in just one way. Diversification is very important because when someone invests in different ways, if one investment does not go well, the others will act as a backup. So, relying only on Bitcoin as your sole investment is not ideal. Someone can invest in Bitcoin and also invest in physical assets like land, real estate, and so on. In fact, when it comes to Bitcoin investments, it's better to invest what you can afford to lose, so that even when the Bitcoin price drops, someone won't panic and feel the need to sell.

I don't know what keeps giving these newbies the impression that only bitcoin is enough for them. I just read a post of another newbie asking if he should quit a high paying job to focus on his passion (Bitcoin). Bitcoin is freedom; it doesn't stop anyone from taking up jobs or other investments. Investing in Bitcoin without any other source of income is a disaster; especially to a newbie who is yet to get a balance in the crypto space.

[Alone055]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

He's foolish if he left one source of income for another when he could literally have both of them together and have no problems at all. In fact, it would have been even better for him to keep doing his usual business and then use the money he earned from that business to make investments in Bitcoin when the time is right, or even do DCA, in which he wouldn't need the market to get down before he could make a purchase. I would never leave my main source of income only because one of my investments has started to work out, but I would be happy that now I would have two sources of income, and that's what most people strive for these days.

You mentioned that he progressed fast, which means that he probaby invested by the end of the bear market, and the bull run started soon after that, which made him good profit for his investments, but he lacks experience, and knowledge too, probably, and he should have at least spent some time in the market before making that decision, and I'm pretty sure he would carry on with his business along with his Bitcoin investments once he had learned that Bitcoin and the market works in a cyclical pattern, and he might have months or even years without any profit only as an investor.

[Youngrebel]

Bitcoin investment is not a daily business so it is not advisable to live solely on Bitcoin investment and even trading too is it is not advisable. But you can take it as a side hustle. But when it is low and sell when it is high. That is the method most investors are doing.
And it is good you are doing business before your invest in Bitcoin because you will be tempted to used up the investment coins. But if you are doing a business it will be a plus to the investment because your daily bills will be channel to the business and not to the investment.

[uneng]

How can someone rely his own life on a volatile asset like Bitcoin, which is unpredictable on short run? In order to live from Bitcoin investment, this individual has to count on frequent increasements in BTC price, or daily trading. Daily trading is like trading, and Bitcoin doesn't fluctuate only upside. So what is he going to do once Bitcoin suffers a correction?

Everyone needs a plan b, to diversify funds among different investments, so once one of them stops working, there will be others to supply the needs of the investor. It's a basic guideline of financial market to not put all your eggs on the same basket.

[sheenshane]

Bitcoin investment is not a daily business so it is not advisable to live solely on Bitcoin investment and even trading too is it is not advisable. But you can take it as a side hustle. But when it is low and sell when it is high. That is the method most investors are doing.
And it is good you are doing business before your invest in Bitcoin because you will be tempted to used up the investment coins. But if you are doing a business it will be a plus to the investment because your daily bills will be channel to the business and not to the investment.

I understand your point, and it seems you're correct.
If you rely solely on Bitcoin for trading or investment, you still need to meet your daily needs.
Making money with Bitcoin can be quite difficult, or perhaps very risky.  Bitcoin investment should be viewed as a long-term strategy, or can be utilized in your business as a payment method.
Generally, people are now using Bitcoin as an asset.

@OP, just let your friend know he is making the wrong decision.
It could jeopardize his life or financial situation.

[Salahmu]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset.

Your advise is taking, perhaps your friend got too carried away by the success you said he made from his first start, however does he got the profit from trading or it was from just a price move after he had just acquired the Bitcoin? I'm curious because if it was trading I wonder how fast he could have understand it to have even decided to stop all the things that sustain him for something he barely starts. Some persons thought that becoming a Bitcoin investor should be enough to leave every other thing they are doing but it isn't a wise thing to do because there wouldn't be another way of income and this could cause a stagnation growth.

[MarjorieZimmermanGinger]

How can someone rely his own life on a volatile asset like Bitcoin, which is unpredictable on short run? In order to live from Bitcoin investment, this individual has to count on frequent increasements in BTC price, or daily trading. Daily trading is like trading, and Bitcoin doesn't fluctuate only upside. So what is he going to do once Bitcoin suffers a correction?

Everyone needs a plan b, to diversify funds among different investments, so once one of them stops working, there will be others to supply the needs of the investor. It's a basic guideline of financial market to not put all your eggs on the same basket.

It's impossible to rely entirely on investments for our livelihood, except for those who already have unlimited assets and are maximizing returns. Other income preparation is necessary to meet living expenses so that investments don't impact performance. Bitcoin has cycles, meaning that for certain periods, we may only buy and not sell, and how can someone maximize their needs in such a situation?

Conversely, relying on short-term trading doesn't always guarantee sufficient profits to meet your needs. People think trading will make money easily, but in practice, it often doesn't work out as expected.

[Publictalk792]

It's impossible to rely entirely on investments for our livelihood, except for those who already have unlimited assets and are maximizing returns. Other income preparation is necessary to meet living expenses so that investments don't impact performance. Bitcoin has cycles, meaning that for certain periods, we may only buy and not sell, and how can someone maximize their needs in such a situation?

Conversely, relying on short-term trading doesn't always guarantee sufficient profits to meet your needs. People think trading will make money easily, but in practice, it often doesn't work out as expected.

It is vital to have other ways to earn money for your living costs because investments are mostly for growing your wealth over time not for immediate spending. Bitcoin price goes up and down meaning you mostly have to hold onto it for long time so it is not good for paying bills right away. Also thinking that short term trading is easy way to get rich is wrong. It is very difficult to make steady money from it. This all shows how important it is to have mix of ways to earn money with stable income for daily needs and investments for long term growth while understanding their real risks.

[Yablee0]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

Op your concern towards your friend is so real and amazing, many folks fails to understand that putting all your eggs in a single basket is like exposing yourself to a more higher financial threat.

It very crazy to believe that anyone will quite is business or well paying job just because he or she  invested in bitcoin not knowing that this is the major strength of that investment, your business or job can serve as a daily or monthly source of income that will be use to fund (buy more stash of bitcoin) your investment to any hight that you want, and can also serve as a sustainable funds that can sort all your bills through the years of your investment.

however, my little advise for all investors, what ever side hustle you find your self doing, do it with every strength in you because if anything eventually happens to it your investment could be a nightmare because you will definitely start selling it at lost to sort out your problem.

[Adams0001]

How did your friend become successful so quickly from Bitcoin? Did he invest in Bitcoin? Or did he trade with Bitcoin? Bitcoin can never make a person successful or rich quickly. I think your friend is gambling or trading with Bitcoin. Otherwise, it is not possible to achieve success so quickly. If you think that the way to become successful quickly from Bitcoin is to gamble or trade with Bitcoin, then I warn you. Your friend may be going to face losses very quickly. There is no way to become successful quickly from Bitcoin.

Never take any big steps even after seeing the short-term success of others. First read about Bitcoin and study how Bitcoin works. I think you may be telling a fabricated story or your friend has taken a risky step, where your friend is lucky and has not started losing money yet. Maybe it will happen very soon. Because, there is no way to become successful quickly from Bitcoin. Even keeping all your money in Bitcoin is a riskier move.

That what comes my mind, because have not seen someone successful in bitcoin easily except is a trader or gambler, because that is the only thing that i can believe that make you get easily profit in bitcoin. But if is investment you need to invest for the long term before you can succeed in bitcoin, is not like other shitcoins that increases or decrease easily he take long term before he pump, and all is gradually process. So am surprised how your friend successful so easily in bitcoin without facings the challenges, bitcoin is volatile and is different from other coins so is very difficult to gain huge profit in bitcoin if is investment method. And if is a traders he should always minimize is risk, because he can probably lose all is funds when the market is bad. Trading is risky and you can be profitable easily and that is how you will lose too. because the market is always unpredictable except you are lucky trader and have the experience to analyse the market very well.

It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin.

You friend took wrong decision buy just depending on bitcoin and leave is business because he achieve huge profit on is first day in bitcoin. you need to know that anything that bring profit, investment, business or trading all as is on risk. your friend needs to go back to is business so that the business will be helpful for you him one day. Because bitcoin can't guarantee you that you will continue getting huge profit. You will usually hear that investors always advice newbie to have source of income before they invest or trade with Bitcoin, because of the risk involved. your friends have business that is managing because he get profit on is first day on bitcoin he leave is business and focus only on bitcoin. I don't think is a good idea to leave your business and focus on one thing, because he can fail anytime, so you need to have other source to make everything balance for you in the future.

[Accardo]

How can someone rely his own life on a volatile asset like Bitcoin, which is unpredictable on short run? In order to live from Bitcoin investment, this individual has to count on frequent increasements in BTC price, or daily trading. Daily trading is like trading, and Bitcoin doesn't fluctuate only upside. So what is he going to do once Bitcoin suffers a correction?

Everyone needs a plan b, to diversify funds among different investments, so once one of them stops working, there will be others to supply the needs of the investor. It's a basic guideline of financial market to not put all your eggs on the same basket.

He left his artwork for Bitcoin, because he wants to see clearly the art behind the technology. Op, could be a friend, but from his writing the both are not too close to some extent and Op may not be sure if his friend has fully abandoned his art business. Even if he did, not all of his contacts will let him go. It's not just feasible to throw away the source that generated money for investment.

[lionheart78]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially.

If he has no means to increase his amount of BTC and all is flowing out of his pocket, then it would eventually run dry but if your friend has mean to increase his Bitcoin on his stash while maintaining his life's needs, then it won't be risky for your friend until his strategy of earning becomes obsolete.

So whether your friend's financial strategy is risky or not depends on how he cycles his funds from cash inflow to cash outflow which in your friends case bitcoin inflow and Bitcoin outflow.  There will be no problem if the inflow is greater than the outflow.

I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

It is always good to have a backup up especially as a source of income.  We never know what will happen in the future, so many financial advisers recommend diversifying the sources of income.

[Rockstarguy]

,he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

I still imagine how someone could leave their source of income and depend on Bitcoin. How is this possible? You can't even depend on trading Bitcoin on a daily basis because the market is unpredictable, let alone depend on Bitcoin as a long-term investment. It makes no sense for anyone to leave their job or business to depend on Bitcoin because it doesn't make one rich or guarantee income on a daily basis. The main idea of investing in Bitcoin is to have a better source of income and accumulate Bitcoin to yield better results, but it is surprising for someone to stop their business and rely solely on Bitcoin.

Bitcoin is a long-term investment, and it is impossible to invest in Bitcoin without having a source of income because the success of every investment depends on the income one has.

[Marykeller]

A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks

Some investors are using their profits from Bitcoin investments to establish their business further or start a new business. In your friend's case, we are hearing a far different thing that your friend leaves their artwork business completely, which has been sustaining them for a long time, to begin depending on Bitcoin, which is volatile and unpredictable.

Folks with their reasoning. I find the action of your friend to be funny, really, because someone intelligent enough will think of expanding their businesses, rather than ending them completely, because of the profits they have made in the short term from Bitcoin. They now think that will serve them right not knowing that Bitcoin fluctuates from bull run to bearish market. If the investment is not strategic and is not sold at the right time, they will end up on the losing side until the green candlelight shows in a few years to come. They can be at a profit if they try to hodl for long term