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

[Zlantann]

It’s important to have both a main income and a secondary income. You can choose to generate your secondary income from Bitcoin, either by trading it for profit, by lending it to earn interest, etc. I often wonder what would happen if everyone on Earth were paid their salary in Bitcoin. Since the total supply of Bitcoin is limited, I’m not sure whether it is ready for such use case. For financial planning, it’s not needed to convert all of your assets into Bitcoin since it's a bit risky and you won't left behind. Instead, a more balance approach is to convert only what you can afford, keeping the rest in traditional assets, you will get the benefit in potential upside without exposing yourself to higher risk.

Those who have a large amount of Bitcoin can live only on the profit that they make from holding Bitcoin. I have read about early Bitcoiners who are living comfortably with the returns from Bitcoin investments. Bitcoin shouldn't be seen as a source of income for those who don't have enough. Before you rely only on Bitcoin, it is expected that you do a comprehensive analysis of your budget for a given period.

For those who are just accumulating small sats, you need to have a full-time job because Bitcoin is just an asset. Relying only on Bitcoin without other sources of income doesn't make much sense. In this current economic situation that is challenged by high inflation and increased cost of living, having more than one source of income has become a necessity.

[CryptoYar]

It is correct that you must avoid using just Bitcoin as forced seller, that is, when price of digital money falls, you must sell your coins at loss to meet your needs of basic living, such as food or rent. It will help you to wait and leave your Bitcoin alone by using extra money you get by running other businesses to pay your bills.

And we know regular savings accounts are losing value against rising prices, making Bitcoin more like digital gold, which governments have no control or way to print more. Although I share your long-term goals, it is not good idea to put everything you have into Bitcoin since fast changes in price cause large amount of stress; it is better to keep few dollars to run your business and invest Bitcoin in long term to keep your wealth, in my view. And you should use money list to spread out your money so that you will never need to sell your Bitcoin when market drops.

[Furball808]

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.

People consider bitcoin to be a passive income. Your money earns or doubles over time. But don’t expect it to happen in such a short amount of time which is why it really is important that this is not your only source of income. The “income” that will come from bitcoin is not meant for your daily expenses. It is for the security of your future.

[SeriouslyGiveaway]

People consider bitcoin to be a passive income. Your money earns or doubles over time. But don’t expect it to happen in such a short amount of time which is why it really is important that this is not your only source of income. The “income” that will come from bitcoin is not meant for your daily expenses. It is for the security of your future.

Bitcoin is only Bitcoin with new Bitcoin blocks found and mined by Bitcoin miners, with its technical developments and adoption growths very strongly with time. if you have money, bitcoin is one of best assets for you to invest your money in, and let's invest money in Bitcoin for long term, you will receive very sweet investment result from Bitcoin.

Calling the future profit as passive income or not, it's not important, the importance is you have money to spend without further energy spent for any works. That's kind of passive income, but even you don't consider it as income, you still have money to use.

Investment in Bitcoin is good but people as Bitcoin investors must have plans for their profit withdrawals with time too.
[ANN] JJG Sustainable Bitcoin Withdrawal Strategy.
https://bitcoindata.science/withdrawal-strategy

[Taskford]

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.

There's no question that Bitcoin is either great currency or long term investment, but we should not put everything at stake because we know market is so risky and everything here is unsure. Diversification is important because it can protect us on any uncertainties knowing that we don't know how everything will end up in future. So building more sources of income is important to protect their selves from sudden failures in future.

Its important to diversify because it give us financial stability and with this we are confident to proceed with those long term investment we have done, also the chances to succeed is high because we have lots of sources to rely on.

[Hewlet]

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

It is one thing to invest in bitcoin and another to make it a primary source of income. In the first place, there's no way you can make bitcoin a source of income because it takes long term to be profitable at it and having to to wait for so long without a stream that can keep you running is a complete NO NO.

Build your income as though you're not expecting to become profitable through bitcoin while going hard in your bitcoin investment for the long term. Fact remains that  your bitcoin stands as a great edge that supports you in the future even when the economy might be doing bad locally.

[Rustam Meraj]

It is one thing to invest in bitcoin and another to make it a primary source of income. In the first place, there's no way you can make bitcoin a source of income because it takes long term to be profitable at it and having to to wait for so long without a stream that can keep you running is a complete NO NO.

Build your income as though you're not expecting to become profitable through bitcoin while going hard in your bitcoin investment for the long term. Fact remains that  your bitcoin stands as a great edge that supports you in the future even when the economy might be doing bad locally.

Better to think of Bitcoin as long term saving tool, not as way to pay your daily bills as its price changes too fast and wildly. If you are using Bitcoin as way to get money, when suddenly market falls, you might be forced to sell your investment at loss to pay for your needs which may easily use up your savings.
So you should keep regular job to pay your costs with Bitcoin as digital gold to make sure that your wealth is protected in case of price rises and economic bad luck over several years. This will remove emotional pressure of seeing daily change in prices and will give you patience to wait until big long term profits come without taking risk of losing everything.

[Mene_rence]

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.

To me, I see bitcoin as a passive income and as an investment on the long run. One shouldn't depend solely on it as the only source of income. It fluctuate, it's sometimes difficult to predict it rising and falling. If your only source of income is bitcoin or anything trading, there's high possibility that you'll make a lot of mistakes and loses will be plenty. At that time, you're not trading with your head, you are trading under anxiety and that's not good for entering or exiting the market.
Have your primary source of income, something that's predictable or constant, and use bitcoin as passive or some sort of investment to yield profit in the nearest future.

[FortuneFollower]

BTC should be something you do on the side of things.. You can't rely on your BTC to get more BTC especially, not going even further than that.

[Kasabus]

Bitcoin is good and profitable, but its not highly reliable source of income. So its either you will find for a real and stable job and make bitcoin as your side hustle, or make sure to diversify your investments because once they all paid off, you will have different flows of income which could led to financial stability if you can work on it continuously.

However, with diversification, I don't mean you have to borrow or take a loan for capital,  but once you gained profits from bitcoin, reserved some extra money and save it until it can start another business or investment in which you are highly suitable and capable to make your investment works and profit.

[Achalugo BTC]

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.

Exactly, one must be earning else where before they can be able to get capital to invest, because in reality for one to have money, one needs to use money to chase money, the same goes with Bitcoin, which offers the opportunity to change their lives for good and for one to grab that opportunity, one needs  capital in order to participate.
Which is essential to know that in Bitcoin, to have knowledge and understanding is one thing and to have capital to start investing is another thing and the both are very important for one to be a successful investor. Though there are some persons that use the means of mining to generate income from Bitcoin but despite that, people still need to have another source which will support their investment in Bitcoin.

[Japinat]

Bitcoin, just like other source of side hustle, stability is always at risk especially that bitcoin price can move up or down any time. So you can't expect for profits consistency because of price uncertainty and volatility.

The key here, learn to diversify and invest outside bitcoin. Look for assets that are less of volatility, and where value keeps heading high. Or invest in physical businesses where you can use your skills and strategies, without leaving your regular job especially if you have not well-established your business or investment yet.

[Joy- maker]

Bitcoin can be said to be another source of income if you earn it as your weekly or monthly salary, trade it to make profit, mining it to make and investing for in it for long term, but also note that bitcoin is money in digital form. Bitcoin became another form of investment when people discover that when you accumulate a good portion of it and hold for long term that they will make good profits from it, so for that reason people now prefer to buy and hold for long term instead of using it for their day to day purchasing of goods and services. Which is the main purpose Bitcoin was created for. So those classifying Bitcoin as a source of income or seeing it as a source of income are not wrong. And as  for me is either you are using bitcoin as money which bitcoin is money or you are accumulating bitcoin to hold for life time.

[Lida93]

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.

How does what you have given as example makes bitcoin a source of income other than what the people engaged in those activities you mentioned as paid with just as they can be paid with fiat like the USD. Does that makes the USD a source of income? Or isn't what you do to earn the USD that is the source of income?

Bitcoin is mostly recognised as an investment asset to make profit through market opportunities. And I seem to be in agreement with that notion than refering it as a source of income.

[snowpega]

OP, you need to learn first that Bitcoin alone is not a source of income. I mean, what I understand after reading your post is that you are trying to say that after investing in bitcoin we earn money in the form of profit, and you are considering it a source of income. I don't agree with it, and the source of income can be some other things, so you can be able to earn money in the form of bitcoin after completing some task, not just after investing in it. As you need money to fulfil your daily needs, and in this way, the condition of the market is not always the same; sometimes it is up, and sometimes it is down. This thing will not allow use your money to fulfil your daily basis needs. Getting this point?

Other than this, you can consider it as a part of investment and set your desired goals. It's all up to you, actually. And really some other source of income will suite more as like jobs and business that offer you a money flow from where you can fulfil your and your family basics and daily basis needs. This is my point of view. DYOR!

[sunsilk]

If you're starting out, it's hard to do that. But I think once the price gets higher and the value of the bitcoin's you're holding gets higher.

It's doable but you'll have to budget that tightly and make sure that you're also going to use the profit you've made to income generating assets that gives you more cash flow.

And thinking that Bitcoin as a source of income or let's generalize it with trading, it's sustainable but if you're not good in trading then forget about it and DCA first.

[Donk1]

Bitcoin isn't a source of income it's a long term wealth. But then as an investor you must have a business or a job that will give a steady cash flow. Indeed it would set a layer in your investment like you would be stress free with the fact that you might sell at a loss just to pay for some bill.

Basically here is where most folks get the wrong idea because they were able to buy some bitcoin most of them will quit their jobs and just relying on it. when that happens Bitcoin would become their only source of income, and with no job or business, there will be no emergency funds to back them up in hard times That's why I like to believe that the value of having Bitcoin is to ensure your future financial success not a daily pay, except from Bitcoin traders.

​Overall when you have a business or a job, you will definitely have freedom in the sense that price swings up and down wouldn't be able to push you to the edge that you will have to take an irrational decision and sell at a loss. That's just it. Having a business or a job is a must as an investor Though the journey may be hard but with the right knowledge and psychology, an investor would be able to accumulate their Bitcoin respectively that's all.....

[Miles2006]

Bitcoin is not a source of income, diversification is another alternative besides I will not advise anyone to go all in fully into bitcoin investment. Bitcoin investment is consider trusted yet there’s no risk free investment including bitcoin, investing needs planning and a proper management and with a good management definitely there’s a percentage of amount used to accumulate gradually.
Diversifying an investment needs a proper knowledge, an investor with multi investment choice requires money also for example the wealthy ones have several source of income and it allows diversification easy although diversification can be considered a risky move, not all kind of investment is worth investing but, with the right knowledge obviously an investor will be able to management and control risk.

[macson]

Although it took me a bit longer to digest what you said because you wrote it all outright without commas or periods, I more or less understand what you mean. Whatever your point, if someone earns/owns Bitcoin, they need to have an income that can cover their basic needs and also allow them to accumulate more.

If they rely solely on their Bitcoin, they will likely sell it to meet their needs, and this could prevent them from maximizing their asset. They need to have some emergency funds and an income to cover monthly expenses without touching Bitcoin for a long period of time, at least one or two cycles, only then can they fully benefit from Bitcoin's long-term potential.