What happens when accumulated Bitcoin is no longer what you can afford to loose?

[Akaenyi]

I have read and heard in many places including this forum where it's said that we should use amount that we can afford to loose to buy Bitcoin. I very much agree with this phrase because there is no guarantee of what can happen in the future, we hope that Bitcoin price continues to go higher in the future but the reverse can happen and it might crash. I know that to be safe in case Bitcoin doesn't live up to expectation in the future is the reason why we are adviced to use small amounts that we can easily loose.

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

[Bishop Victor]

I have read and heard in many places including this forum where it's said that we should use amount that we can afford to loose to buy Bitcoin. I very much agree with this phrase because there is no guarantee of what can happen in the future, we hope that Bitcoin price continues to go higher in the future but the reverse can happen and it might crash. I know that to be safe in case Bitcoin doesn't live up to expectation in the future is the reason why we are adviced to use small amounts that we can easily loose.

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

The phrase “invest only what you can afford to lose” is often misunderstood. It doesn’t literally mean that the accumulated value will always feel painless to lose. What it really means is you are not compromising your present or future life obligations—rent, food, health, family responsibilities, emergency funds—by investing.
Your example is valid:
₦100,000 monthly may feel disposable today, but after 10 years, that cumulative amount is no longer “small.” If Bitcoin were to crash completely at that point, it would hurt. Anyone who says otherwise is not being honest. Time amplifies both gains and emotional attachment.

[Hypnotizer]

That’s is why you need risk management…investing in Bitcoin is a risky investment and I understand your concern about the total accumulated amount in the future when you use NCA for your monthly or weekly accumulation but let’s look at it from this POV, the phrase Invest what you can afford to lose doesn’t means that if you lose the investment it wouldn’t affect you but it means it won’t cause you much damages financial or psychological and you can be able to start over again.

If you invest your discretionary income weekly or monthly via NCA because that it the amount you can afford to lose for the time being and you continued accumulating for the next five years, let’s start you invest N50k monthly in five years..that means you have invested a total of N3m in that five years and because of Volatility your total invested money might be higher than or lower than N3m, and then there’s a market crash! This N3m you have invest in five years are somehow lost, this shouldn’t have much impact on your finances because initially you were using your discretionary funds to invest and you can start over again using that discretionary funds. Investing what you can afford to lose now means that no matter how much that amount turnout to be in the future, if you lost it then it still should have much impact in your finances because you used proper risk management.

[IceLincoln]

I have read and heard in many places including this forum where it's said that we should use amount that we can afford to loose to buy Bitcoin. I very much agree with this phrase because there is no guarantee of what can happen in the future, we hope that Bitcoin price continues to go higher in the future but the reverse can happen and it might crash. I know that to be safe in case Bitcoin doesn't live up to expectation in the future is the reason why we are adviced to use small amounts that we can easily loose.

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

The phrase “invest only what you can afford to lose” is often misunderstood. It doesn’t literally mean that the accumulated value will always feel painless to lose. What it really means is you are not compromising your present or future life obligations—rent, food, health, family responsibilities, emergency funds—by investing.
Your example is valid:
₦100,000 monthly may feel disposable today, but after 10 years, that cumulative amount is no longer “small.” If Bitcoin were to crash completely at that point, it would hurt. Anyone who says otherwise is not being honest. Time amplifies both gains and emotional attachment.

I like ur explanation on the money you can afford to lose… and one other thing, this money no be say you just dey literally expect to lose ya money in the future, na so u nogo too feel devastated in case of a downturn wey b say you don go use money wey you been wan use settle family expenses go invest.. when market turn u go wan die. So to save us all that stress even say if we lose that investment e go pain you e no get as e wan be wey u nogo feel am but regardless you go still mount.

[Nathrixxx]

If you have been accumulating over a long time, then you're expected to have been in profit, because it is normal to employ a specific profitable strategy during your buying periods. Such strategies could include the use of DCA or the 'buy the dip' strategy for your accumulation.

While the market is falling, you can see fewer losses because of the strategy already in place to avoid such unfavourable market conditions and prevent significant losses. When we decide to continue holding, we will recover all these losses and potentially earn more over time.

[Obim34]

~snip

Many reasons to debunk the saying of investing in Bitcoin with an amount you can afford to lose. Investing in Bitcoin is not like gambling, Investment & Gambling are purely distinct.

If you practice long term investment, you will see that several little portions turn into large scale portfolio. You are accumulating, that means expanding your investment, it should be handled with extreme care for security and privacy, even the smallest early buy should be treated with the same security as when the investment portfolio has enlarged.

[Pablo-wood]

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

First remember the goal is long term it profit must be guaranteed so if a person can no longer afford to lose a certain amount just like the example given it's best to reduce the risk. Let's say the amount can be demanded for an emergency at any point maybe because there is no other source of income then it's of no use investing that money into bitcoin because it will be a wasted investment and losses might be incurred due to the asset's volatility.  It's best to keep our investments within the amount we can afford to lose at any give time.

[Btcdeybodi]

What is your take on the matter?

If you use 100k to accumulate bitcoin monthly and that amount is what you can afford to lose as at the time of investing, even if in the next 10 when the amount become 12 million, it is still an amount you can afford to lose if peradventure anything happens like the price of bitcoin crashing. Before 100k became an amount you could afford to lose monthly, it means that your earnings might be x10 or more in every month so it won't bother you much if you lose the total accumulated amount in 10 years except in a situation where you are no longer earning after that 10 years interval.

[Charles-Tim]

I have read and heard in many places including this forum where it's said that we should use amount that we can afford to loose to buy Bitcoin.

Do not mind those that said so, bitcoin is not trading or gambling, you can see it as an investment. Learn about the right time to invest and just invest in it.

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose.

If I invest in bitcoin consecutive for over 10 years, I can not keep investing in bitcoin but I will just prefer to stop investing in it but just hold the money I have already in bitcoin.

But it can not beyond the amount of money that I can afford to lose because bitcoin would have increased and I would have gained a lot of money and I know bitcoin will keep increasing more as long time pass.

[Somto9Light]

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it?

100,000 is such a huge amount of money for someone to say that it is what he or she can afford to Loss especially when you keep buying with the DCA for decade you're getting about 52,000, 000 million naira, Obviously is no longer what you can afford to Loss.

But what makes you think bitcoin will crash then? Come on you have to be positive and stop being negative because what you're saying here can probably make most people to start feeling kinda way.

[Joy- maker]

To use what you can afford to loose doesn't really mean the amount of money you can afford to loose every month or every week. To Invest what you can afford to loose in Bitcoin means that the total amount of money you should be investing in Bitcoin or the total amount you should be holding in Bitcoin should be the amount of money you can afford to lose or easily let Go just in case things doesn't go as you plan or if anything happen along the line so that you won't be affected since you invested the amount of money you can afford to loose in Bitcoin. So in that case I will advise each and everyone of us to change out impression towards that phrase use what you can afford to loose or invest what you can afford to loose in Bitcoin.

[Creeper0]

You are misinterpreting the sentence, "Invest money you can afford to lose." This sentence means, invest money that will not degrade your standard of living or break you mentally. No one wants to lose money, be it small or large. Losing money that can stop you from eating a meal, affect your house rent, deprive your child of school and deprive you of medical care, you will never be ready to lose that money and if you lose it, you will definitely suffer and your standard of living will deteriorate.

As a result of long-term DCA or at the end of long-term holding, we may have an amount that is very large, we are certainly not ready to lose this money. However, even if we lose it, our standard of living will not deteriorate. Rather, it will hinder our progress. I think, it is pointless to expect Bitcoin to fall in the long term. You can spend your time on something else that is valuable.

[FirmWars]

As you they accumulate Bitcoin with the amount way you fit afford to lose, make you also get another investment you they put some of your money inside too, make Bitcoin no be your only option, get different investment way you fit fall back at when one fail. I no believe say Bitcoin fit disappoint but just in case it does, you will know that you have other investment. The thing way you talk now be say, if I done accumulate up to 100 Bitcoin, I come lose am, e go pain but e go pain pass if nah there way all my hope they.

[Showlove01]

I have read and heard in many places including this forum where it's said that we should use amount that we can afford to loose to buy Bitcoin. I very much agree with this phrase because there is no guarantee of what can happen in the future, we hope that Bitcoin price continues to go higher in the future but the reverse can happen and it might crash. I know that to be safe in case Bitcoin doesn't live up to expectation in the future is the reason why we are adviced to use small amounts that we can easily loose.

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

I totally understand  your point but perhaps you have forgotten that before someone we use 100k to be accumulating Bitcoin every month, it means the person is earning X of that amount they are using to accumulate every month ( 100k) and secondly the more years are going by the more Bitcoin they are holding and the more their income will also be increasing simultaneously which means they won't see it as a challenge but it can only be a challenge or problem when their income is not increasing rapidly and someone who's income is not increasing will not be able to invest such in 10 years, the amount will definitely reduce to their capacity.

[Churchillvv]

A very interesting thread you can have for discussion and I don’t have enough merit I would have done justice and I hope a merit source does.

Well you have said something that interest me that I just have to say this, from the beginning days of bitcoin it was considered high risk investment with no future guarantee but today bitcoin has grown beyond the fear that people had and now it’s not longer crypto with that much risk, so it’s more like we have changed it to “ Use an amount you can afford to do without for a long term”

Since no one is literally investing in bitcoin for fun instead we want profit in return, and the profit come in a long term then we have to change the term something that aligns with its current stage.

[Jubilee58]

There is something you should understand, nobody throws money away because money is a scarce commodity and difficult to get. If you invest your money in bitcoin and your money diminishes as a result of bitcoin crash it is a painful situation. Investing what you can afford to loose does not mean you will be happy when you loose your money to bitcoin crash, it means you will be able to have control and the money you have lost will not weigh you down because you have more money to continue with your life or other investment.

Many investment are risky, Bitcoin is not the only risky investment, so the word invest what you can afford to loose is not only applicable to bitcoin. In every investment you want to engage in, make sure you don't invest all your money because their are unforseen circumstances that may arise in future that can lead to asset loss or damage , some times we hear of somebody's container being seized in high sea or by custom officers, or somebody's shop catching fire etc, all these things are risk that are involved in other businesses and when all your money is involved, you stand the risk of loosing all your money.

[Cryptomultiplier]

Am sure if you do the math and accumulate for a long time with money that you can afford to lose now, by then it would be time to diversify when the portfolio is so large and you fear the crash, that's if Bitcoin still performs poorly and dips further till your duration has almost or already elapsed.
However, I doubt this can be the case because the long term you set on your mind is enough time for you to read the signs and know if Bitcoin accumulation is worth it for the period. There are signals and information flies around.
You'll notice big whales start selling and others liquidating as well. You could do same before the market crumbles if that is what you fear.

[Y3shot]

If you can afford to loose 100,000 naira every month to buy Bitcoin in your DCA strategy after 10 years the total amount can no longer be what you can afford to loose. So does it mean that if Bitcoin were to crash by then it won't affect you because you were using amount that you could afford to loose to accumulate it? The fact is even though you are using amount that you can afford to loose in accumulating Bitcoin to reduce your risks, as the amount accumulates your risk also increases. This is just an observation, I know that using what you can afford to loose is better than using all your savings to buy Bitcoin because nothing is 100 percent guaranteed in the future. What is your take on the matter?

If you like, invest the lowest amount of money you can in anything, as long as you can afford to lose it. The reason why it is advisable to invest only the amount that you can afford to lose is not because you may end up losing everything you have invested; it is because it will enable you to invest wisely and prevent you from stressing yourself financially to meet other obligations. If Bitcoin were a type of investment where losing is very common, and investing to make a profit can't be predicted, then there would be no point in investing in Bitcoin, but it is not like that. If you have been able to accumulate a good amount of money, then it means your investment is a success, and you know what you are doing to accumulate a significant amount of Bitcoin.

[Grace333]

I understand you are speaking from a probability stand point and let me also give my opinion from the standpoint of probability.
At the beginning of your investment, you start investing with funds you can easily do away with and bitcoin crashes someday, it won’t really be an issue if you stick to investing with your discretionary fund, but as time goes on and your investment has accumulated to a stage that if the market should crash today it will really affect you. To be realistic here, I’ll use the money to acquire landed property, at least it’s something you’re sure of won’t crash one day but you never know when if it’ll crash and what the future holds and if it were to crash, you’ll be caught off guard, except you’re a trader that takes every little peanut you make from the market and leave. We are all aware that investment is a risk but we do it just to get either side of the coin. Though we are still optimistic about Bitcoin and not expecting it to crash one day. Let’s keep that faith and still continue to put in the action by accumulating consistently and persistently.

[Samlucky O]

I know exactly what you mean bro, accumulating with what we can afford to loose means to invest the amount we are comfortable with, so that  with the passage of time, it will not affect us financially. It means that If you earn $200 weekly, you might decide to invest $20 per week and this amount is an amount that will not affect you expenses for the month. Meaning that your $180 will sustain all your expenses without the need of using that $20. The $20 is  just like your life time savings. The accumulated amount after 10 years may be bigger than you think. So no matter how big it appears in your wallet, it is still the amount you can't afford to loose because you invested it with little little amount that didn't affect your financial plans those times. It may fall if Bitcoin dips but doesn't mean it will never rise again. Bitcoin is volatile and the future is sure that it will not disappoint you after 10 to 12 years later.