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

[FanEagle]

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.

Unfortunately I am in that exact situation. My salary is paid in bitcoin and I have to pay for many needs and because of that I sell almost all of my bitcoins, sometimes I sell all of them, sometimes I get to save a small sum aside. I even sometimes avoided paying debt that wasn't urgent, like I can pay next month and no problem, so I put that money on bitcoin, and then paid another time that way keeping bitcoin, like credit card debt. When you earn just bitcoin only, you have to cash it out and hope there is some left.

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.

We cannot be sure about what the current and upcoming cycles of bitcoin will bring to us. Bitcoin tested ~20k in 2017 but the current price is just 5x growth of 2017's ATH in almost 8 years of time. I mean that we need to adjust the estimations of long term holding benefits as bitcoin is not doing 10x for every cycle.

[Proty]

 I don't think you actually know what you are saying or maybe the you actually presented your statement. I don't think if it is even possible to have bitcoin investment without a source of income. I think what you are trying to say is that it isn't safe to put all one income in one asset that is bitcoin. It is wrong to put all one assets in bitcoin however as a newbie I think it won't be a good idea to begin to think about diversification especially since we are still trying to build up our portfolio. Thinking about investing in other assets when we are still in early phase of our bitcoin accumulation isn't a good idea

[ejikeme24]

Unfortunately I am in that exact situation. My salary is paid in bitcoin and I have to pay for many needs and because of that I sell almost all of my bitcoins, sometimes I sell all of them, sometimes I get to save a small sum aside. I even sometimes avoided paying debt that wasn't urgent, like I can pay next month and no problem, so I put that money on bitcoin, and then paid another time that way keeping bitcoin, like credit card debt. When you earn just bitcoin only, you have to cash it out and hope there is some left.

Sure, I could imagine how difficult it is for those that earn through Bitcoin to stack enough stash, Sometimes before month ends there will be so many bills on our table that need to settle. So when we get paid we would be forced to sell our Bitcoin to clear those bills, and sometimes after clearing the bills we would be Left with zero or a little stash. That is the reason why it is good for an investor to have a different cash flow  more especially those who are earning in Bitcoin so as to avoid selling when it is not your will.

[batang_bitcoin]

I don't think if it is even possible to have bitcoin investment without a source of income.

It's possible if someone just gifted it to you but it's never happening into these times. No one is generous anymore when the price of Bitcoin is high that it can change someone's life.

That is the reason why it is good for an investor to have a different cash flow  more especially those who are earning in Bitcoin so as to avoid selling when it is not your will.

I agree, if we're investors it's needed to have a source of income and both of you are right that it's unlikely that someone will get invested into Bitcoin without having a cash flow or source of income.

[Easteregg69]

It's on dca nothing i can do to help it.

[Easteregg69]

You know that baking machine i mentioned?

[Easteregg69]

Kenwood is in kitchen machine.

Like the old hifi amps.
 
I would set the adjustments as i like-- On syntax. Perhaps i look in for the miss conception.

[Hypnosis00]

Bitcoin may be a good investment, but its not a reliable one. So I don't suggest making bitcoin as a main source of income, because it won't guarantee any fixed time or date when will you be making profits, sometimes you'll gain, sometimes you'll lose, that's why its never safe to have bitcoin as a main source of income.

Instead, find a real job that will guarantee regular income. And look for additional investments, be it gold or real estate that will provide you another income when bitcoin at the moment isn't making you profitable, and is not providing you food on the table.

[Easteregg69]

Bitcoin may be a good investment, but its not a reliable one. So I don't suggest making bitcoin as a main source of income, because it won't guarantee any fixed time or date when will you be making profits, sometimes you'll gain, sometimes you'll lose, that's why its never safe to have bitcoin as a main source of income.

Instead, find a real job that will guarantee regular income. And look for additional investments, be it gold or real estate that will provide you another income when bitcoin at the moment isn't making you profitable, and is not providing you food on the table.

You can not show up with a mining rig telling it's the best idea in the world. I got that.

Edit. It's on yest and home bake so far!

[Nothingtodo]

The only problem in my case is that if I rely only on Bitcoin without making alternative income arrangements, then the problem in my case will be that I will not be able to hold Bitcoin for a long time. That is, to hold Bitcoin, you must depend on business or job in addition to earning Bitcoin. If you rely on Bitcoin without making alternative arrangements, you will not be able to store Bitcoin in your wallet. Because when you accumulate some Bitcoin in your wallet, if you have a serious need, you will be forced to sell that Bitcoin because in this case you have no alternative income arrangement, that is, you will have to solve the problem only through Bitcoin.

[Easteregg69]

The only problem in my case is that if I rely only on Bitcoin without making alternative income arrangements, then the problem in my case will be that I will not be able to hold Bitcoin for a long time. That is, to hold Bitcoin, you must depend on business or job in addition to earning Bitcoin. If you rely on Bitcoin without making alternative arrangements, you will not be able to store Bitcoin in your wallet. Because when you accumulate some Bitcoin in your wallet, if you have a serious need, you will be forced to sell that Bitcoin because in this case you have no alternative income arrangement, that is, you will have to solve the problem only through Bitcoin.

The only problem is people doubt that you are the enemy.


You save that by stick to things.

[DeeppRockk]

The only problem in my case is that if I rely only on Bitcoin without making alternative income arrangements, then the problem in my case will be that I will not be able to hold Bitcoin for a long time. That is, to hold Bitcoin, you must depend on business or job in addition to earning Bitcoin. If you rely on Bitcoin without making alternative arrangements, you will not be able to store Bitcoin in your wallet. Because when you accumulate some Bitcoin in your wallet, if you have a serious need, you will be forced to sell that Bitcoin because in this case you have no alternative income arrangement, that is, you will have to solve the problem only through Bitcoin.

Good point about the holding dilemma. I've seen folks try to live purely off Bitcoin earnings, but timing sells becomes a mental minefield.
Maybe allocate a portion of each payout for expenses and stack the rest? Even then, having other income streams takes the pressure off. How do you handle that balance yourself?

[rezakurnia66]

When bitcoin at lower price and the moment recovering too long I think is the only disadvantage depending of bitcoin as main or only source income, but earning profit trough bitcoin trading if you bring large capital more enough to back up your needed around several months later. If some one has capital around $10k and earn profit for one position only 10% is enough for monthly needed more than two or three months later based on outcome in my country.
So manage well the saving assets firstly if want full make bitcoin as source income and you have enough back up fund if position stuck, in my opinion don't worry make bitcoin as full trading source income depend you can manage well the trading and brave to use cut loss position.

[Iranus]

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.

I think that will depend on. I mean, in the context of increasing geopolitical and economic instability globally. If you come from countries with weak economie and geopolitical instability such as Iran, Venezuela, or Argentina. In places where fiat inflation is in 2 or 3 digits, or could collapse at any moment, the idea of ​​converting all your asset into bitcoin is the smartest decision.

Bitcoin carries inherent risk and is quite volatile, but it will not collapse and become worthless like the currencies of some countries. Therefore, depending on your circumstances and the country you live in, converting all your assets to Bitcoin is sometimes a way to protect asset.

[dunfida]

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.

Multiple income sources is more better in the end of the day rather than just have one lets say. If  you've been making profits on Bitcoin investment aside on making trading actively and just solely making some profits on its growth with just simply holding it, then i would say it wont be that sustainable not unless if  you are holding thousands or a few hundreds then it might do but if its just on small scale then its not something that you would be able to rely on. Unlike when you do have a business or other income source then you do at least having the capability on increasing your Bitcoin holdings without compromising it on actively spending just because you do need to survive on day to day basis and thats something not sustainable. Its always been advisable that you should be that looking for another sources if you do want to maximize in speaking about into those accumulation.

The only thing that you should be always be putting up on your mind is that you should only be investing into the amount that you can afford to lose, so that no matter what the market would be doing then you wont be that stressed out since you do know that you do have that multiple back ups behind or simply it cant hurt up your finances too much.

[Outhue]

The only thing that's close to source of income through Bitcoin is mining, you are the one that needs to do some spending instead, this is different from what others called a source of income, you plug the miner and starr getting some Bitcoin by solving some blocks and you will have to pay for electricity bill too.

This is not entirely free, and it's not close to use using your strength or brain to work and get paid for it, also we are different beings in this world, some people can't manage two source of income without regretting and millions of people have done very well for themselves managing only one source of income, haven't you heard that been very good at one thing is always better than trying to be good with two things? Best look out for what works for you, it's all about who you are.

[wmaurik]

...

Good point about the holding dilemma. I've seen folks try to live purely off Bitcoin earnings, but timing sells becomes a mental minefield.
Maybe allocate a portion of each payout for expenses and stack the rest? Even then, having other income streams takes the pressure off. How do you handle that balance yourself?

Actually, it's not that difficult to manage such a problem in our own lives, especially for those who don't yet have full responsibility for their own families, making it easier for them to manage their own decisions. The first thing we must have in life is income, as each stream of income allows us to make any plans we want, including things like holding Bitcoin long-term. So, the key to keeping our Bitcoin savings safe and having the opportunity to buy more at some point is having a job that generates income in our lives.

Because without income from a job, everything will be difficult to manage, especially since almost nothing in this world is free, so everyone needs to have another job besides relying on Bitcoin. Although Bitcoin investment is a very worthy investment for people who already know Bitcoin in great detail and are no longer doubtful about its price volatility.

[Nothingtodo]

Good point about the holding dilemma. I've seen folks try to live purely off Bitcoin earnings, but timing sells becomes a mental minefield.
Maybe allocate a portion of each payout for expenses and stack the rest? Even then, having other income streams takes the pressure off. How do you handle that balance yourself?

When the need arises, if there is no source of income and there is no other way but to use Bitcoin, then one is forced to sell Bitcoin to meet the need. I had allocated Bitcoin in parts to meet my needs several times, but even then I was unable to hold it. There is a saying in English that says, "Necessity knows no law." That is, necessity cannot be restrained by any specific limit. So sometimes there comes a need where it becomes difficult to find any other way than Bitcoin alone.