Should I depend solely on Bitcoin?

[Ziskinberg]

I would not lie to myself, but I really want to depend solely on bitcoin due to its high profitability. But knowing how volatile it is, it made me quite scared and just accept the fact that what we had today might definitely change in the future. So it’s best to just invest into other assets as well like real estate and gold, but always put bitcoin as your major investment and should have the highest allocation of your fiat.

[Botnake]

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...

Simply put, do not just invest in bitcoin but in fiat as well. Or find a stable job that pays fiat, but maximize your investment with bitcoin, that way you will accumulate more wealth in less time. Or better yet, once you have massive amount of bitcoin in your portfolio, then open a new investment with other assets. If they all come to prosper, you will definitely enjoy all of it.

As long as bitcoin remains volatile, no one would be brave enough to focus on bitcoin as for their means of survival.

[Sonia_123]

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

Relying solely on Bitcoin is a very wrong decision to make, no matter how wealthy you may be , those persons that are just starting their lives with Bitcoin are diversifying their  income from Bitcoin to another business.

Your friend needs to be very careful, this life is slow and steady wins the race, him involving in trading or gambling is not the best option to do because these are most risky aspect of Bitcoin, closing all his businesses and putting all his other achievement into Bitcoin is not the best, you should keep talking to him maybe gradually he will understand when he starts losing.

Bitcoin is not a get rich venture in as much as the risk is there, it takes time to grow in wealth, it is a steady and continuous process that grow with time. Tell him to go back to his art work, since he was doing fine before he was introduced into Bitcoin.

This is where people gets it all wrong and after a huge loss in the gambling or trading aspect of Bitcoin, they say Bitcoin is not genuine, but they are the ones that have failed to understand how Bitcoin works.

[CryptoYar]

[...]

It is smart to not put all your money just in Bitcoin because its price changes much which is making it risky for daily survival. Good plan is to have stable job that pays regular money to cover your living costs. Then you can invest more aggressively in Bitcoin to grow your wealth faster holding it for long run. Once you have much of Bitcoin i is wise to invest in other things too like stocks or property so all your money is not in one place. Since Bitcoin price swings wildly it is not safe to rely on it for your basic needs. It is better used as long term investment alongside more stable financial plans.

[MarjorieZimmermanGinger]

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.

Having a steady source of income throughout life makes it easier for someone to target long-term investments because they don't have to worry about how to generate short-term income from investments to cover living expenses. Many people mistakenly believe they can rely entirely on investments and don't need to work to earn money in other sectors. They forget that Bitcoin market fluctuations can significantly impact investment decisions if they don't have other sources of income.

This is different for people who have achieved significant asset growth, as they can strategize about investing across multiple assets and sectors other. For people who are just starting to invest with limited capital, it will be very influential if they do not have another source of income to meet their living needs.

[adaseb]

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

What price did he buy bitcoin at? If he bought like 10 years ago and he still has most of it, then yes he can probably live off it if he bought a few bitcoins. Its possible it can crash down to $10K but its highly unlikely and not anytime soon.

If you buy bitcoin today you most likely wont have the same success as him. Back in 2015 bitcoin was like $200. So you could of easily 600x your money. Basically for every dollar invested you would get $600. So when $1000 would result in $600,000.

These days you wont get those results. If you invest $1, you might get back $1.25 or $1.50 in a few years. Bitcoin wont 600x again. The market cap is way too large. You can try with alts but most (99.9%) end up going to 0.

[₿itcoin]

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

Bitcoin is the only asset of its kind that has the potential to go from zero to six-figures, and investing maximum resources in it can lead to maximum growth of our assets. The returns that BTC has given in the past have made traditional markets look like dwarfs, the average returns annually are about 55% or even more, and the Sharpe ratios of BTC even outperform the S&P 500.  Definitely, it's a very volatile asset and drawdowns of 30% or even more happen every few months, but these ups and downs are the cost of its exponential growth. If you believe in the future of Bitcoin and its unmatchable potential, then investing your maximum resources is not a rash decision, but it’s your bold conviction in it.

[Mate2237]

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

Bitcoin is the only asset of its kind that has the potential to go from zero to six-figures, and investing maximum resources in it can lead to maximum growth of our assets. The returns that BTC has given in the past have made traditional markets look like dwarfs, the average returns annually are about 55% or even more, and the Sharpe ratios of BTC even outperform the S&P 500.  Definitely, it's a very volatile asset and drawdowns of 30% or even more happen every few months, but these ups and downs are the cost of its exponential growth. If you believe in the future of Bitcoin and its unmatchable potential, then investing your maximum resources is not a rash decision, but it’s your bold conviction in it.

You're right Bitcoin has a very fast and steady growth rate that anyone who is really serious about financial security will definitely invest into because Bitcoin is one of the leading assets that has attracted alot of investments due to the fact that it has high return on investment.


Bitcoin is is a stable asset so people should invest maximum resources into it as that will lead to a heavy return on investment which will be good in terms of the financial security of any investment

[Woodie]

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.

Well just to put it out there, Bitcoin gives multiple streams of making money off it..its not a one size fits all, some people trade it on chart and they make money off it, others use it for peer 2 peer trading which I have seen a friend do and make some decent profit because you make money from both buying and selling BTC, and other possibilities..otherwise the only risk I see is if one has tried something to make profits and they still experimenting with it and choose to quit their usual hustle or day job, then that will be a bad choice...

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 you arent wrong, your buddy needs to spread their risk buy diversification of their portfolio,  investment 101.

[freedomgo]

This is actually an individual’s choice. I have to say a lot have been successful with bitcoin, and until now they depend solely on bitcoin as their only asset. But as they keep growing their profits, it pave way for them to diversify their investment and enter into another profitable one. But the fact that it’s only bitcoin that made these all possible, it only proves that bitcoin is really a reliable and valuable investment.

But let’s be clear here, only the brave and strong investors are capable to invest successfully with bitcoin, but those weak hands have no real spot in bitcoin.

[Japinat]

This is actually an individual’s choice. I have to say a lot have been successful with bitcoin, and until now they depend solely on bitcoin as their only asset. But as they keep growing their profits, it pave way for them to diversify their investment and enter into another profitable one. But the fact that it’s only bitcoin that made these all possible, it only proves that bitcoin is really a reliable and valuable investment.

But let’s be clear here, only the brave and strong investors are capable to invest successfully with bitcoin, but those weak hands have no real spot in bitcoin.

There is no wrong if you depend solely in bitcoin as long as you have already established a strong foundation for it. Which means you have secured your finances, you have increase your flow of income, and most of all, you have owned multiple investments through bitcoin. For me, I would never wanted else rather than to keep growing it and maximize my bitcoin investment.

[danadc]

It's not bad because BTC is an asset that will never let us down However, you must be in very good financial condition, If you were previously selling artwork, I understand that those who sell artwork can make a lot of money, Maybe you already have the means to survive without touching your BTC.But you should know that the price won't always be at a great point, Sometimes it has strong corrections, and that can cause you to feel some stress from thinking you're losing money.

I would advise diversifying, which isn't bad Do other businesses with the idea of not touching your BTC investment and surviving by doing other activities.

[alani123]

How can he depend on bitcoin only?

Do you mean that he bought so much and so early that now with Bitcoin's price going up he became rich?

Well, if that's the case, that's not right. If he has a successful business he should try to maintain it. Maybe hire an apprentice to keep some paintings going in his stile and keep attending some galas. Owning bitcoin is not an income source. In the end of the day, if he owns that much BTC he could also buy some property or something else to keep earning some income without that much labour.

[bitzizzix]

How can he depend on bitcoin only?

Do you mean that he bought so much and so early that now with Bitcoin's price going up he became rich?

Well, if that's the case, that's not right. If he has a successful business he should try to maintain it. Maybe hire an apprentice to keep some paintings going in his stile and keep attending some galas. Owning bitcoin is not an income source. In the end of the day, if he owns that much BTC he could also buy some property or something else to keep earning some income without that much labour.

It's confusing and seemingly unreasonable for someone to focus solely on Bitcoin and abandon their entire job or business, as Bitcoin can only be profitable if managed with the goal of generating long-term profits.
And as you said, if someone has made a profit from Bitcoin and uses some of it to gather people to keep the business running or to buy something that can generate passive income from the profits, or a portion of the profits from Bitcoin, that makes sense and is a good idea because the OP gets two benefits: at least the profits from the business can be used to meet all their needs without having to use Bitcoin. Or, if the business is successful, the profits or a portion of the profits from the business can be used to continue accumulating Bitcoin, which is a very smart and wise move.

[₿itcoin]

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.

Diversifying the investments is a smart strategy, but holding just 1-2% of assets feels too small and timid for people who believe in the future of Bitcoin. Institutions and experts like ARK Invest and Ric Edelman are now suggesting people to dedicate about 10-40% of their allocations, which may vary with risk tolerance, because they think that not investing in BTC can be a speculative mistake in today's world. Also, institution like Grayscale and Ned Davis indicates that having at least 5% of Bitcoin in the portfolio improves its performance in risk-adjusted returns. However, you could think investing 100% money in Bitcoin is extremely risky, but it is more suitable for us who have a stone-cold conviction. For people who believe in the future of BTC, at least 10-19% of allocation is a balanced approach that would also manage the volatility.

[FortuneFollower]

How can he depend on bitcoin only?

Do you mean that he bought so much and so early that now with Bitcoin's price going up he became rich?

Well, if that's the case, that's not right. If he has a successful business he should try to maintain it. Maybe hire an apprentice to keep some paintings going in his stile and keep attending some galas. Owning bitcoin is not an income source. In the end of the day, if he owns that much BTC he could also buy some property or something else to keep earning some income without that much labour.

Yeah, I agree: he can do it so he would have income to get more BTC, rather to only rely on what he's got. That would be much better, imo..

[purple_sparkles]

How can he depend on bitcoin only?

Do you mean that he bought so much and so early that now with Bitcoin's price going up he became rich?

Well, if that's the case, that's not right. If he has a successful business he should try to maintain it. Maybe hire an apprentice to keep some paintings going in his stile and keep attending some galas. Owning bitcoin is not an income source. In the end of the day, if he owns that much BTC he could also buy some property or something else to keep earning some income without that much labour.

Yeah, I agree: he can do it so he would have income to get more BTC, rather to only rely on what he's got. That would be much better, imo..

It also depends on the person's age. If this is an elderly person, I doubt that he or she will be able to organize a business, so the option of living for one's own pleasure is not bad at all. It is clear that when there is money, it is a resource that one wants to develop even more, but in reality, desire alone is not enough, one also needs to be able to organize the process. When a person has never done business, it is difficult for him or her to even come up with a system for how everything should be.

[Hannah$]

In today's world, the technology of the economic system is growing rapidly. In this trend of change, digital currencies, especially Bitcoin, are one of them. Bitcoin has opened a new horizon. Many people save this digital currency to get good profits in the future. Investing in Bitcoin will be a financial asset, but there are also risks. Bitcoin is not under the control of any government or central bank. As a result, it is considered a potential defense against inflation. I think you should not rely only on Bitcoin, because if you do not invest in Bitcoin for the long term, you will not get good profits. Just like everything has its benefits, there are also some risks. Although Bitcoin is a future-oriented and promising digital asset, it is never wise to rely completely on it.

[Nothingtodo]

It will not be possible to survive solely on Bitcoin. You must rely on paper money as well as Bitcoin. You could become dependent on Bitcoin if you were accepted by all countries in the world. It might be possible to become dependent if you could exchange all goods with Bitcoin. Many people have started to depend on Bitcoin because the profit margin of Bitcoin is higher than that of other currencies, but if you want to live a normal life, then of course, in addition to being dependent on Bitcoin, you must also be dependent on fiat currency.

[Abiky]

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's never a good idea to put all of your eggs in one basket. What if Bitcoin goes down all of sudden? Then your friend will lose money big time. It's really not worth the risk. Especially with how volatile market prices are.

I'd suggest he keeps selling his artwork, while using the money to invest into Bitcoin. Maybe your friend is interested in buying other coins as well? Investing money into Bitcoin and altcoins is a great way to diversify. By minimizing risks of loss, you can help maximize your earnings in the long run. PoS coins are usually a great way to build a nice passive income on the side. Do your own research to determine what's best for you. Wishing your friend the best of luck.