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

[Hatchy]

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?

You are getting the whole idea wrong. Yes it's true that you should invest only what you can afford to lose, but to me honestly that doesn't apply to bitcoin the way you are putting it. Bitcoin has long past the days where people would be scared of it going bizzar. Theres little to no chances of the market suddenly dropping to $0 per BTC. Except probably the world ends.  Even if satoshi were to return, bitcoin would still not get to that price. There might be some price dump but it won't crash like you are saying here..

What you have to understand about investing what you can afford to lose, it simply means you should put in money you may not be needing anytime soon.no matter how bad the market goes, your bitcoins are still very much in the Blockchain. They only thing that depreciates over time is it's value pegged to the usdt or any other currency.. so no, BTC won't crash..

[Akaenyi]

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.

We are talking about naira here which has devalued so much over the years not dollar that 100,000 is a lot of money today. 100,000 naira is quite big for savings or investment but I believe that most average income earners in Nigeria today can afford it. Lastly 100,000 every month in 10 years is not 52,000,000. Lets do the maths 100,000 × 12 = 1,200,000. 1,200,000 × 10 = 12,000,000.

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.

I'm quite positive that Bitcoin will reach $1,000,000 sometime in the future but you should also have it at the back of your mind that it might not happen. Bitcoin is decentralized and nobody controls the market, if it crashes in the future you cannot hold anybody responsible. I believe this is the main reason why it is said that you should use amount that you can afford to loose to buy Bitcoin because nothing is guaranteed that it cannot crash. I believe in the potentials of Bitcoin and I know you cannot stop anybody from selling theirs so what happens if most whales decides to offload their Bitcoin?

[Bigjoe33]

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 don't really get your point, especially the topic, but then, let me ask you, do you invest to loose?, or would you prefer you invest and loose all you invested? Am sure the answer is NO! I think the concept behind invest what you can afford to lose is.... So you don't begin to panic when it declines in price because you invested with the money you are sopose to use to settle other basic necessities. It's just so you can relax and carry out your investment without pressure while denying yourself some personal necessary things you should have taken care of before investing

And lastly, it is to invest with just money you wouldn't be needing any time soon, infact, money you may not be needing, so you don't get to worry or need it any time, and wether bitcoin declines, you wouldn't worry because you don't need the money now, and you also know that it will appreciate some day

[Hardyrobust]

 There is something you failed to understand here, there is risk in bitcoin investment and no one is saying the fact that you are using what you can afford to lose doesn't mean that there isn't risk again in investing in bitcoin. Bitcoin has proven to be a potential coin and a good store of value.
What you are supposed to invest in bitcoin is discretionary income this money you can used it to do whatever you feel like and it won't affects your daily needs. Is just like some of the money we spend on things that aren't important to us if we decide to put this money in buying bitcoin it is worth it.

[Call_Me_Guru]

What is your take on the matter?

You have raised a good point, the logical saying about the affordability of the investment due to the risk to pocket ratio is right and when it started, it could be affordable until some point. My twist is that if you plan to continue to invest the N100,000 into bitcoin monthly, you should be judging it through your present financial status and not with the price of bitcoin.

Bitcoin price could favor today and disfavor tomorrow, that shouldn't be a discouragement, but be concerned about the point and angle where you need careful discipline and plan. I mostly tell people to find the best price for their bitcoin, what you raised is one of the reasons. Do not buy bitcoin anyhow at all times like the influences tell you, but buy bitcoin at a low price as possible and watch as your money grow. This makes it makes sense to start when the price is affordable and reasonably low for you and stop immediately when you sense it is getting more expensive. I don't think affordability will be a problem in this sense, but to watch your bitcoin deliver more money to you if you can wait.