Where Bitcoin is currently envisioned as a hedge to preserve value and is said to be a thousand times better than gold in terms of scope.
Is their any point making exaggeration?
Bitcoin and Gold are two valuable asset to invest in, the main reason it's more better to invest in Bitcoin now than gold is that Bitcoin is no where near it peak price, unlike gold that is almost there, since it has been in existence from the beginning of mankind, so I may agree with you that Bitcoin is a better asset to invest in currently, due to it huge potential ahead of him, but saying that it's a thousand times better than gold is what I refuses to accept, because that's misleading.
I doubt that it is an exaggeration to assess bitcoin as being 1,000x more valuable than gold, even though the market cap of bitcoin as compared with gold is currently around 1/20th. It could take 50-200 years or more for bitcoin to reach 1,000x more than gold, whether that is bitcoin going up, gold coming down or a combination of the two.
For sure, each person is free to make their own valuation and to assess the addressable market of each or various ways to attempt to consider value of each. There is no necessity to agree, even if you currently consider those relative values as being currently out of reach of the current market and/or market dynamics.
[edited out
But actually Bitcoin does not force this model. Also usual people don't have huge cash reserve that's why usually their position is naturally gets built for many years.
Even if they put their 10% income it will take decades to put their one year worth of earnings on Bitcoin then I think this is normal. Since what really important it allows their ongoing buys and the coins they have bought earlier are the one appreciates compare to those coins they bought later on.
Sure. Generally speaking if a bitcoin accumulator is able to average the putting in of about 10% per year of his income, then it is going to take nearly 10 years before he had put in a whole year of his income, and practically speaking, a lot of normal people struggle to be able to consistently invest and/or save even 10% of their income... so anyone investing/saving 10% or more of their income is likely doing quite well in terms of building up their investments and/or their savings.
That front loading can somehow help if the investor have big funds to use, but if they do spread their buys I think this will became more advantage will have less regrets and pressure if suddenly the price drops. Well as always the most important part here is consistency. But well either what strategy they are using those early coins they bought usually do heavy lifting on their portfolio.
Your conclusion seems to be the opposite of what is the dynamics.
If a person invests into bitcoin at a higher rate, then they are likely going to have more regrets when the BTC price drops - however, they will likely have less regrets if the BTC price ends up tending to go up at a rate that is higher than other places that they might have had considered putting their time, energy and value.
We cannot really know what bitcoin's future price is going to do, yet a lot of guys end up investing into bitcoin in fairly aggressive ways over many years (including front loading their bitcoin investment) because they have a presumption that bitcoin's price is generally going to continue to go up in ways that is likely better than other places that they could have had put their time, energies and value.
For me doing balance approach like front loading then do steady DCA became much sustainable for people choose to stay for long term on Bitcoin.
Sure. The idea of front loading is to try to plan that the investment into bitcoin will be more aggressive during the earlier years of investing into bitcoin (perhaps for the first full cycle) and then speculating that the front loading will have had paid off well enough in order to be able to invest less aggressively in later years, such as after the first full cycle. Of course, there aren't any guarantees, and surely guys can feel that they are putting quite a bit at risk when they front load their investment into bitcoin, and yeah, some guys have more abilities to front load than others based on their discretionary income and/or perhaps based on other investments that they had been making prior to getting into bitcoin.
Very aggressive front loading abilities might be for guys who might be able to invest one or two years of their income into bitcoin within the first full cycle, and most likely they are ONLY able to do that based on other assets that they might already have at the time that they come to bitcoin and/or the fact that they have a high level of discretionary income.. meaning that their income is way higher than their level of expenses.
I think buy-and-hold is probably the simplest approach for a small investor. Bitcoin can still have major price swings. Trading, lending, or other strategies may offer additional benefits, but they also come with more risk. Personally, I’d keep things simple and only invest what I’m comfortable holding for the long term.
But guys, can you tell me which wallet I should use to keep my bitcoin?
I have using one right now!
If you want to use a wallet for transactions then I would say you should use Electrum wallet. But if you want to hold then you can use Hardware wallet.
I personally prefer to use two wallets. For example one is for transactions with everyone and the other is for holding. If someone needs to send some amount of Bitcoin or buy Bitcoin then I will definitely use Electrum or
Trust wallet. For long term holding I will use Hardware.
You can get all the ideas about wallets through this thread if you want.
https://bitcointalk.org/index.php?topic=1631151.msg16405643#msg16405643Trust wallet is not trustworthy. It is like having money on an exchange, since it is owned by Binance and it is closed source.
There are other wallets (such as cold card) that no one should be using based on their recent outrageous security breaches, and it is funny that they have not yet been removed from some of the websites comparing open source wallets. By the way, another problem with cold card is that in 2021, they changed their software from being open source to being source verifiable, which was pretty much the same time that they introduced the outrageous vulnerability bug that failed to produce enough entropy (randomness) in their random number generator that was used in the creation of new wallets within the wallet.
The Bitcoin Hole has listings of both open source hardware and software wallets (and yea ignore the Cold Card wallet on that site, since it should be removed)
The
Athena website only has hardware wallets.
It can sometimes take time to figure out which wallets to use, and Electrum is known as being a pretty good long standing open source wallet, even though I don't use it.
By the way, the more bitcoin that you hold (or accumulate) the more and more important security and privacy becomes, and so in the beginning when you might ONLY put $10 to $100 into it, there might not be much perception of importance, yet if the amount continues to increase and maybe even appreciate in value, then it becomes more important to increase and improve your security and privacy.
[edited out]
Gold and Bitcoin are both investable assets, so they need to be compared. If I have $5,000 a year to invest, then to decide whether I should invest that $5,000 in Gold, Bitcoin, or split it between the two, I must know the policy, risk of the two assets and what kind of output they will give in the long term. After that, it will be easier for us to make a decision. And what exactly do you mean by Gold is higher in value? price of an ounce of Gold? Total market capitalization? Historical acceptance? Bitcoin is ahead of gold in many places due to important features such as security and independent use. This is why bitcoin is growing in popularity. I am not presenting gold in a negative way here. However, personally, if I were asked to decide to invest new capital somewhere for a long time, I would choose bitcoin...
Of course, guys have to decide what to do for themselves, and if they are already accustomed to gold, then maybe they would be more comfortable with it. Otherwise if someone is newly trying to figure out how to buy, sell, store transport gold, they are likely in for a nightmare, which also goes to show why bitcoin beats gold in the various monetary attributes by many times, perhaps 1,000x or more.. when you think about sound money attributes such as verifiability, scarcity, transportability, divisibility, costs in regards to transacting/storing, digital programmability and other attributes. Even gold's physicality can be quite a burden if trying to move around relatively large value without being subject to issues... can you imagine trying to move $100k of gold or even much higher quantities? and then verifying them and not getting robbed or incurring all kinds of difficulties in moving it or storing it? or trying to transact in it?
As a blanket principle, I try to suggest very low and perhaps even no involvement with gold, yet if some guys cannot resist wanting to have some of that burdensome shiny rock in their possession, then they should limit themselves to less than 10% the size of their bitcoin holdings with it.
At the same time, I continue to suggest that it can take quite a long time to really build up a reasonably decent size bitcoin stash, and I don't exactly believe in trying to play cycles, even though guys have to figure out what works for them...since I tend to think that it is better to accumulate bitcoin for 4-10 years or longer and for me I would not justify selling any bitcoin until reaching a status of having enough or more than enough bitcoin, so playing the cycles would not be part of that (at least from my thinking about how to transition out of bitcoin accumulation into maintenance and then later into withdraw or sustainable withdrawal that can be using price-based withdrawals and/or time-based withdrawals, yet my selling is not with intentions to buy back. You can seem my sustainable withdrawal ideas in
my sustainable withdrawal thread.
Talking about accumulating bitcoin until when it is enough or more than enough, you know the insatiable nature of man. I am afraid there'll never be a time when one will say, "I have accumulated enough".
I don't believe that normal guys cannot figure out how much is enough or more than enough.
Sure, there are a lot of guys who are not normal and who cannot be satiated and they keep changing the goals so that they are always struggling to get more and more and more.
Frequently, I give the example of a guy who might have had an $30k income, so then when he gets to a point that he can stop working and his bitcoin can support an $80k per year income plus a pay raise of 7% each year, then I would think that should be enough or more than enough.
Of course, I cannot decide for other people even though I can frame the matter in such a way that a guy who had been working at a certain rate may well be able to not work again and/or to just choose whatever kind of work that he wants to do, to the extent that he wants to work... and if his already existing skills might not be able to get him higher amounts than just managing his bitcoin withdrawals then why would he want to have to work in the kinds of ways that he ends up getting paid more from just living off his bitcoin, and maybe even 3x more (in the example I gave)?
Also for the fact that tomorrow is not promised, I always find out time to make withdrawals from my withdrawal account while there's still an untouchable continuous DCA wallet. I will go through your sustainable withdrawal thread. I am sure, I'll gain a lot from there.
Frequently, I consider that there is a preference to keep growing the bitcoin and allowing the time to pass (without withdrawing from the bitcoin) until the bitcoin withdrawal amounts end up being less than the value that the bitcoin is tending to grow (on average) each year, so yeah there are up years and there are down years, yet if we are valuing our bitcoin stash from the 200-WMA, then one of the advantages of the 200-WMA is that historically it has ongoingly been going up, so then we should be able to figure out withdrawal amounts that end up being less than the amount that our bitcoin is growing... and yeah, it can take time to get to a large enough bitcoin accumulation level, yet guys who are constantly withdrawing from their bitcoin (and taking profits out of it), they are quite likely costing their own progress more than they are benefiting it, especially if they think that they are selling bitcoin and going to be able to buy back cheaper, rather than just ongoingly adding to their bitcoin.. so that their bitcoin stash is ongoingly growing.
Feel free to ask any questions in my investment ideas thread or the sustainable withdrawal thread. The sustainable withdrawal thread does not get as many posts as the investments ideas thread, yet it still sometimes can take some time to relate to some of the ideas, and I have guys arguing with me about some of the valuation ideas in other threads from time to time, and of course, guys will have their differing perspectives regarding how to think about their bitcoin holdings and then how to manage their holdings once they get to certain levels and for me, it hardly makes any sense to spend 4-10 years or longer building up bitcoin holdings and then to end up selling most if not all of it for inferior investments and/or for consumption purposes when guys can probably get way more value out of the employment of price-based and/or time-based sustainable withdrawal practices (once their stash gets big enough).
