Disadvantage of depending on bitcoin as your only source of income/trade

[Boldfx]

I believe every business one goes into is to make profit but as it is widely said two good heads are better than one, so owning two sources of incomes isn't a bad idea no one prays for loss or any unexpectancy but if any arises it should not reduce your market value, because you are built on one piller, depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need but owning other businesses will enable you to buy more bitcoin and exercise more patience because your daily life challenges and bills will be taken care of by other businesses you do giving you more time to prolong and increase the rate/amount of your bitcoin, it will interest you that the more years passes by the more inflation becomes more fatal than ever and the only answer that will be left will be you brother that owns an atom of bitcoin because only you can receive or send huge money without anyone coming to break your home and taking you away in sunlight with any government badge, that aside I understand how important bitcoin is now that I want to convert everything I have to bitcoin.

[death69]

The just diversify advice is correct but it is also kind of useless if you do not already have the resources to diversify. Starting a business requires capital. Building multiple streams of income takes time and energy and often money you do not have if you are already struggling. So what do you actually do? The answer is not some great strategy. It is just: do not put yourself into a position where one bad week screws everything up. Keep some fiat to have a back-up for a couple of months expenses. Do not convert everything to Bitcoin, as tempting as this may be when inflation is eating your savings.

Because the objective is not to be the most convicted Bitcoin hodler. The goal is to be still here in five years, still hodling, still participating, still being able to make decisions from a place of calm and not desperation. That is harder than it sounds. But, it is probably the only thing that actually works long term.

[EL MOHA]

My question is, how is bitcoin even a source of income in the first place? Bitcoin is an actually a currency or most of the time an asset for investment, so I don’t see a place where bitcoin can actually be an income. Even as an a asset which if invested in would bring ROI I think one still needs to have some income before they can actually be able to afford to buy bitcoin and also be able to hodl it for a long time to actually get the best out of it.

Bitcoin is never an income, even if you’re holding it, its best to actually have extra incomes such that you can afford to actually hodl this bitcoin for long to help beat the market price fluctuations.

[Stepstowealth]

... depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need

How can Bitcoin be a source of income when you do not have any other source of income from where you can purchase Bitcoin with some of the proceeds of the profit you make from it. I see people who say that Bitcoin is a business or a source of income as people who uninformed.

Even if you are a trader, you need capital to trade with, capital from another source. Bitcoin is not a source of income, It provides an opportunity to invest, and to invest you need to be earning money from another source.

[Mate2237]

For someone to be thinking about investing in Bitcoin shows in the first place that, such a person already has a source of income so such a person can't be talking about having Bitcoin as the only source of income. Bitcoin is an investment option not money that one can actually spend. That is why they say that Bitcoin is an investment that is of long term term basis because, investing in Bitcoin doesn't guarantee fast money which one will use as his source of income.


What is needed is just information about these things because anyone who is seeing bitcoin as his or her main source of income may not be too informed and enlightened about how Bitcoin works in the first.

[Abu-Naim]

What is needed is just information about these things because anyone who is seeing bitcoin as his or her main source of income may not be too informed and enlightened about how Bitcoin works in the first.

I don’t think the OP explained it well, he referred to Bitcoin as source of income which is the question that is yet to be answered by the OP. Is Bitcoin a source of income or an asset that investing on? It is a digital asset that was created to provides us with financial freedom, and allow us to have our investments in our control, but it is not a source of income unless if the OP is referring to Bitcoin trading which is also very risky and one need to have good knowledge about. I will advice OP to make sure he Learn more about Bitcoin.

[Furious 7]

I believe every business one goes into is to make profit but as it is widely said two good heads are better than one, so owning two sources of incomes isn't a bad idea

Since the beginning when we discuss about any business or business that makes money, of course the more income the better, but in this case not everyone can feel the same because even though it will be very profitable, it does not mean that everyone can realize this. It would be great if we have additional income because it will make us ideal but this is certainly related to how our creativity, how we can compete and strengthen ourselves and how we can manage money well.

Linking this with bitcoin will definitely be even better, it's just that we also can't assume that as if this is an easy thing because having additional income when our financial management is bad in the end the results will not be good. We must be able to maximize what we have even if we don't have additional income but as long as we can manage our finances well and can still buy bitcoin then I think it is also still a very good option.
The point is that everything returns to ourselves regardless of those of us who have a lot of income or one income but it becomes a routine like a salary, the most important thing is that we can manage it well.

[xbetz.io]

One underrated downside of relying solely on Bitcoin as income is volatility timing.

Even if you’re long-term bullish, short-term price swings don’t care about your rent, medical bills or unexpected expenses. That pressure often forces people to sell at the worst possible moments. Diversification isn’t about chasing more upside, it’s about reducing forced decisions. Having some fiat or alternative income streams buys you time, patience and psychological stability. The goal isn’t to be the most “pure” Bitcoiner. It’s to still be here in 5–10 years, holding from a position of choice rather than necessity.

[Hispo]

If anyone can think of disadvantages of having Bitcoin as only source of income, then imagine which someone who depends only in very devaluated FIAT, like the Argentinian Peso or the Venezuelan Bolivar has to say about their experience with finances.
I would take Bitcoin any day instead of weak FIAT which serves no purpose but to dilute my wealth and crush my savings. At least with Bitcoin there is a very good chance to get some extra value our of one's savings, instead of losing it to inflation.

That is why Bitcoin has become so popular in Countries like argentina and Venezuela, it is way superior to our local FIAT and even our government knows it.

[OgNasty]

The just diversify advice is correct but it is also kind of useless if you do not already have the resources to diversify. Starting a business requires capital. Building multiple streams of income takes time and energy and often money you do not have if you are already struggling. So what do you actually do? The answer is not some great strategy. It is just: do not put yourself into a position where one bad week screws everything up. Keep some fiat to have a back-up for a couple of months expenses. Do not convert everything to Bitcoin, as tempting as this may be when inflation is eating your savings.

Because the objective is not to be the most convicted Bitcoin hodler. The goal is to be still here in five years, still hodling, still participating, still being able to make decisions from a place of calm and not desperation. That is harder than it sounds. But, it is probably the only thing that actually works long term.

There are no shortcuts.  We all started somewhere.  Diversification is important for lots of reasons.  You can try to get rich with Bitcoin, but it won't last as Bitcoin kicks off no income. 

I see lots of people build houses of cards trying to take shortcuts to get rich.  It is why so many people get rich and then go broke.  You need to learn to live off the income your investments produce, and if your only investment is Bitcoin, you are playing a game of 'when does my money run out'...

[Gozie51]

Actually I don't know who will conceive the idea of making bitcoin the only source of their income. How?

Bitcoin is not owned, it is acquired either by mining or investing in bitcoin. Therefore, you have to buy bitcoin to invest in it.

So how would someone have bitcoin as one line of investment, how many bitcoin can they acquire? In fact, those who have acquired lots of bitcoin are already wealthy and diversifying into bitcoin investment.

The question is how do you make profit from bitcoin, it is either trading it, buying and hodling for profit taking but most of that don't profit you always. You lose in trading and while hodling in your wallet, the price keeps fluctuating, raising and falling. So bitcoin is not a safe heaven for one source of income.

[Nwada001]

If you understand how important Bitcoin is now and how it's also not risk-free, there is no time you will plan to convert everything you have into Bitcoin, as that will be breaking your own protocol and advice that you give above about selling off in times of need if you no longer have anywhere you can get money from.

You can invest in Bitcoin, but because it's one of the safest and most recommended assets doesn't mean you should not apply caution. We should always try to think ahead before making any form of investment decision.

[AmoreJaz]

... depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need

How can Bitcoin be a source of income when you do not have any other source of income from where you can purchase Bitcoin with some of the proceeds of the profit you make from it. I see people who say that Bitcoin is a business or a source of income as people who uninformed.

Even if you are a trader, you need capital to trade with, capital from another source. Bitcoin is not a source of income, It provides an opportunity to invest, and to invest you need to be earning money from another source.

There are some here who are earning crypto specifically btc owed to their sig campaigns and other bounties. That is the reason why they earning some and they are using it as investments, either they will gamble or trade it with other alts Also, you can do tasks which are paying crypto. There are so many sites offering crypto-paying jobs. So yeah, even if you have no money to buy btc, you can still earn some money.

[Darker45]

In the first place, Bitcoin isn't a source of income. There are many bank accounts in my country that were closed, funds temporarily frozen, because they declared Bitcoin as source of funds. Whether it's a misunderstanding or not, the point is that Bitcoin isn't a job or a business. It's an investment risk only those who have the money can take.

As far as trading is concerned, that's just doubling the risk. If you hodl Bitcoin, there's risk. If you trade it, the risk has multiplied.

[DeeppRockk]

In the first place, Bitcoin isn't a source of income. There are many bank accounts in my country that were closed, funds temporarily frozen, because they declared Bitcoin as source of funds. Whether it's a misunderstanding or not, the point is that Bitcoin isn't a job or a business. It's an investment risk only those who have the money can take.

As far as trading is concerned, that's just doubling the risk. If you hodl Bitcoin, there's risk. If you trade it, the risk has multiplied.

Bitcoin can be a source of income for some people. It's not the same as a regular job, but you can earn it through activities like content creation or development work paid in BTC. Trading profits also count as income. Diversification is smart, but saying Bitcoin isn't a source of income at all isn't accurate.

[BlackBoss_]

depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need

If you managed to have bitcoins, that's good as a first step to financial freedom but there are many other things from your financial preparations for your general finance to investment capital, emergency funds, and what you will do after you bought bitcoin.

If you have good preparations (like having different funds for spendings, emergencies, and investment), you are good to go with what you will do after purchasing bitcoins. There are two main options: investment (buy and hold) or trading (with spot market, margin market or futures market).

Invesment is a best option to do as if you can hold your bitcoins safely a long time, you will get very good profit, and more importantly you will not lose any fraction of your bitcoin.

Trading is bad as it is more dangerous and by trading, you can lose part of your bitcoin portfolio or lose all of it.

[The Sceptical Chymist]

My question is, how is bitcoin even a source of income in the first place? Bitcoin is an actually a currency or most of the time an asset for investment, so I don’t see a place where bitcoin can actually be an income.

Oh man, you are pointing out something I've noticed for years on this forum and have stopped commenting on, because it's like screaming at a bicycle tire because it popped and became flat, useless, and headed for landfill.  Nobody's going to even acknowledge you noticed glaring idiocy, so just keep that in mind.

I have to assume every time I've seen questions like this, "bitcoin as income" means signature campaigns or bounties.  That's how I've always interpreted it, and there are people who have relied on that kind of income--which is crazy, because it's never guaranteed.  Not even close.

Nevertheless, I've had my own masturbatory fantasies about the very thing I just criticized.  Could be worse, right?