Topic: Buy the DIP, and HODL! - page 110. (Read 122033 times)

The growth of Bitcoin doesn't depend on politics, no doubt to that fact.

But in regards to this context or development, what we should picture is that America is influential and most powerful nation globally in (politics, Economically etc.) An Aspirant during their campaigns mentioning or emphasizing on bitcoin simply shows how important and relevant Bitcoin is, it's a boost to the bitcoin community.  So many countries looks up to US Economically,  there  are large percentage (%) of world population who haven't adopted bitcoin but the development can trigger adoption of bitcoin  especially nations, organisations and individuals etc who looks up to US Economically. Bitcoin is still growing and their is more room for expansion, so when prominent nation like US discusses bitcoin it can have impact on adoption and growth globally.



I'm inclined to your emphasis @Dailyscript, it all about mastering in a specific investment rather than diversifying when a specific purpose is not yet achieved. It's important to to focus on managing one resource,  keeping close  eye and managing such investment effectively. Our focus in Bitcoin in bitcoin investment, is to accumulate steadily and to hit a satisfactory level in our investment . Thinking about diversification as a newbie or not having a solid finance can be of distraction, so why not focus on achieving a specific investment purpose.

Actually I want you to understand that the growth of Bitcoin has never for once depend on the politics, so perhaps I wonder why you would think that global politics is one of the factors behind the growth of Bitcoin, however may I remind you that Bitcoin has been doing very well right from the beginning even when most people were against it, so perhaps I wonder why all of a sudden because of Donald Trump statement about Bitcoin almost everybody began to conclude that the growth of Bitcoin depends on politics, actually I totally disagree with that, though the only good thing about it is that after what he said concerning Bitcoin people who were skeptical about Bitcoin will now realize that Bitcoin is the only way and also change the wrong mindset most people normally have on Bitcoin investment.

I think that it was Keynes that thought that it was better for people to specialize in an economic activity, earn money that way and then use that money to buy whatever they may need, and I agree on principle with that view, since the only successful trader I know does exactly that, as he trades Google and only Google stock.

And while such specialization may seem to take things too far, the guy can recite all kind of facts about Google from memory that I doubt even some of its executives could do so, so by concentrating all his efforts towards a single stock he has been able to obtain the success he is looking for, which is not too different from what many forum members here do, which concentrate exclusively on bitcoin and nothing else.

while global politics works hand in hand with demand and supply which is the core factor responsible for Bitcoin price movement, it's worthy of note that it's not just about global politics but global politics that affects Bitcoin in a way. If Trump was neutral about his view on Bitcoin, it wouldn't be looked at as a big deal that his chances of winning election is becoming high and that it will have an effect on Bitcoin price in some way. We've practically seen a lot of ripples and speculation going around as a result of Trump's view on Bitcoin but like you've said already, it's just a big thing for traders and individual that are short termed in Thier investment. If you're a long term HODLer, along  your accumilation stages, a whole lot of event will play out that will affect the whole demand and supply framework which has been what's responsible for the bulls and the correction we've been seeing on a regular bases but they are all combined recipes that comes with Bitcoin accumilation. Regardless of the effect of the current global politics, you still continue to DCA and never get tempted to sell too soon even when it causes us to experience a new ATH sooner that expected.


so in essence, Global politics will come and go and it effect might be visible or not but the consistency on our accumilation will always remain.

I think people are not really paying attention to how much global politics can influence the price movement of some assets including Bitcoin. It may not be all that drives the market but market do respond to those news due to market speculations and uncertainties. So political news impact on the market but usually dissipate quickly most times, hence the reason I consider it as a tool for short term traders.

As a long term investor, the news might not make much difference to us unless when we position ourselves to take advantage of whatever the market throw at us after the news. For instance, if the market dips after the news release, it becomes an opportunity to buy more but if the market pumped after the news, it becomes an opportunity to hold tight. So we can learn to make good use of the news but it is definitely not a time to panic or sell.

You've made some good points here because ever since the news about Donald Trump acknowledging Bitcoin in some of his speech has also made the price of Bitcoin experience some significant gains lately since the price movements relies on several factors which means for the fact that Donald Trump who was a previous critics of Bitcoin is now coming open to say positive words about Bitcoin even to the extent of having the intentions of declaring bitcoin as a strategic reserved asset as seen in this link https://www.investing.com/news/cryptocurrency-news/trump-potentially-declaring-bitcoin-a-strategic-reserve-asset-seen-as-a-watershed-moment-3525595 and even chooses a pro-bitcoin activist J.D Vance as his V.C so all this are some of that factors that helps to boost the awareness of Bitcoin the more so I quite understand the angle you are talking about because it's not as if Bitcoin depends on political influence but they are part of what increases the fame of Bitcoin and more people begins to consider to invest in it.

To me it seems the idea of risk management and diversification frequently gets mixed up or jumbled together, and many of the active participants in this thread already realize that the creation of solid cash management practices helps with risk management and even provides some level of diversification at least in the sense of NOT having all of our eggs in one basket, yet at the same time, newbie investors are likely NOT working with a lot of capital, so they have to start their investment journey with small amounts and likely ONLY one investment, and realizing that it could take one or two years, just to get strong cash backup systems in place should also justify why there might not really be much of any ability to invest in more than one thing at a time, and in this case, and for the purpose of this thread we are referring to investing into bitcoin. 

Maybe at some point there will start to be (or feel) some level of luxury to start to add other investments besides bitcoin and cash, but those likely are not core investment strategies for building the investment (bitcoin) into some kind of a meaningful amount.

Another point is that any investment is coming from disposable income, and by definition should be money that we are ready, willing and able to lose if the bitcoin market turns against us.  Yeah, no one wants to lose money, but we should not be going into any investment, whether bitcoin or otherwise, expecting that the investment has 100% odds of performing in our favor.  Accordingly, we are not using money that we need and we are using extra money to buy our bitcoin, so when we commit to our bitcoin investment for 4-10 years or longer, we should be able to appreciate that the "or longer" portion of that could be 20, 30, 40 years or it could be that we never get our investment principle back.

I am not trying to be glib about this or even to suggest that bitcoin is a bad investment, since many here already likely appreciate that I believe it to be amongst the best of places to put any extra value, and it may well even be the best or the only place (beyond making sure that you have dollars/or your local fiat for expenses), so there may well not be any kind of need to diversify, yet I also get the sense that many folks are likely going to start to feel some needs to diversify beyond just having cash and bitcoin, yet I cannot say exactly when those preferences are going to trigger since some folks may want to start to diversify beyond merely bitcoin and cash after they have around 6 months of living cash of bitcoin in their bitcoin investment (and maybe they have somewhere between 3-6 months in cash with 3 months being in their emergency fund and the other 0-3 months could be in the emergency fund too or it might be in reserves and/or floating funds)...

.. and surely I am also a fairly Big advocate of not overly valuating the value of your bitcoin, so it seems to me when making these kinds of bitcoin stash valuations, the use of the 200-WMA seems way better than using spot price in order to valuate what you have.

and so it there might be desires to go beyond cash and bitcoin, then there are likely ways to be creative in terms of considering that diversification to merely be various alternative ways of holding cash and/or emergency funds to so that you don't ever have to sell your bitcoin, except completely under your own terms.. so whether you start to buy stocks, bonds, properties, commodities or other forms of cash / cash equivalents, those are likely going to be personal choices and maybe no rush to add them slowly while continuing to pay attention to how the cash and BTC funds balance out the other investments.

Some folks might not start to feel any need to diversify beyond bitcoin and cash until maybe their bitcoin holdings goes above a couple years or more of their living expense levels.

Nobody is saying that bitcoin is relying on some political campaigns to make headlines or saying that without political endorsement of bitcoin by politicians that bitcoin will not keep breaking new heights, and setting records. No that's not the point, the picture I want you to see here is that bitcoin is gradually earning it's rightful place in the society, years ago there was nothing like politicians saying anything good about bitcoin, but today the story has changed, to the point that someone as big as Donald Trump is now building his political campaigns around bitcoin, saying some actual truth about bitcoin. Even though we can't actually be sure that he won't keep his promises if he wins the presidential election. But it is a win situation to the bitcoin community because bitcoin is gaining more grounds, and people who has been less concerned about bitcoin in the past, are now showing interest. People who probably must have not heard about bitcoin are now becoming aware of it. So either ways bitcoin is not losing here, rather it is gaining!!

It’s kinda complicated with the last word tho, there’s no such like profit when dealing with shitcoin, memecoin etc. The common reason investors still choose to invest only in bitcoin for the long run is because they know how reliable and comfortable bitcoin investing it, it’s okay when an investor want to diversify their investment because it’s not advisable anyone invest 100% but it’s a matter of choice. For clarity purpose, diversification should be considered when an investor has attained a balance portfolio secondly in terms of choosing an investment choice also matters but, more especially on an investor capacity for example, if any newbie should think of diversify at an early stage which I believe is not proper because they have not gotten to a balance stage where they can comfortably diversify.

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I have been staring at your reply for a while now, not knowing what exactly to write, as you've said it all. Though, they are lots of things on my mind, but I will try as much to make contributions without been to harsh towards politics(because am not a fan).

Firstly, I am not a fan of politics. I really don't know why others still show interest, but I personally find it difficult to believe in all their say, or even bother to listen to what they have to say. The truth is, politics and Bitcoin are two different things that might not work in hand. My reason for saying this is because: Bitcoin happens to be very transparent and open. it is a system of decentralization where power belongs to everyone who is connected. This is unlike politics where power belongs to a certain group of people that categories themselves as same party members or dictators.

Secondly, I am not motivated to invest in Bitcoin because a political candidate is showing interest or has made several promises. I am making my own investment for my own benefits. I think we should be cautious especially when someone begins to make too many promises (with Bitcoin) just to get the interest and vote of the people. I don't support anyone, but I think when promises like this keep coming, then not all would be fulfilled at the later end, leading to so many disappointment.

And lastly, the past and present government(politicians) has already caused enough disappointment by failing to do the needful for the benefits of their nation. Making promises with Bitcoin isn't a green light for me at all. I shouldn't be motivated to invest in Bitcoin just because a politician has it in mind. But Incase those campaign promises becomes true at the end of the day, then it's still for the betterment (benefits) of everyone.

You may be right to some extent but to me I don't think is wise to master only one skill I mean what if you went to a place that, that your skill is not functioning I mean they don't do something like that, it will be so unfortunate right. Having more than one skill will give one a big advantage over those that doesn't even to yourself and in case you have forgotten Bitcoin investment is not a skill and being a Bitcoiner doesn't mean you shouldn't invest in other things you know you can make out something from and moreover, diversification is very good but not investing in shitcoin and memecoin  because that's going to be a waste depending sha.

while he might not be making any general statement, it's necessary we get used to making use of the word Bitcoin and not just mere coin or crypto. An average person out there is already getting misinformed with regards the difference between Bitcoin and some coins that's out there and with the way this thread is growing, we can't tell how useful it will be in the future and making use of a word that has the tendency of giving readers a mix or mared understanding of what Bitcoin is should be totally discouraged.

It's necessary as we continue in this discussion that we make use of the right words at the right time and in the right way. It's also good that we learn to understand the reason why it's not advisable to only wait to buy during the DIP. as people continue joining the discussion, they will certainly come with an uninformed mindset and a lot of us came in with those kind of mindset, it was through regular correction and emphasis on these things that helped us get the right narrative on why it's not advisable to invest in a other digital asset outside of Bitcoin and we also got to know that it's right to buy Bitcoin as long as we have the means to doing so and hold it for a long time while we keep on buying which is what we've come to know as the DCA methord. We're all learning and striving for perfection and with a combined effort by all of us, we're going to grow together to have a strong Bitcoin portfolio through the advice and motivation we can gather from ourselves.

I put it to you that you don't really know what you are talking about, everything in this life is risky both investment and whatever. so bitcoin is not exception from them. I prefer risking a potential asset like bitcoin than risking on some gambling shitcoin. You have made alot of points as regard to bitcoin but I see it a little bit problematic
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1) you said do we know that bitcoin is risky? Answer, yes bitcoin is risky but also profitable do to its volatility.
2) you said we shouldn't put our eggs in one basket? Yes we shouldn't do so, but but for me investing in bitcoin should be a major priority of investment that we should consider before talking about diversification.
3) you said we should invest in lung term but not to invest for our future children? I think our investment in bitcoin is kept as a store of value for retirement and also an asset kept for our future generation just like other physical asset are kept for the future. so if  our hairs decides not to continue our legacy to continue with bitcoin investment, they can use the accumulated bitcoin for whatever they chose to invest. we have discussed that we should not force our children to invest in bitcoin.
4) you said no body know if bitcoin will fade away one day so we make it a side hustle? it's depends on your choice or where you hear your speculation from, because as far as I know bitcoin will last more than 100 years. we have total of 21million bitcoin in existence 1.5million is left to mine. according to research the last block to be mine in bitcoin will take place in the year 2140 that is 116years from now. so I can tell you that bitcoin can last more than your speculation. for the side hustle, it depends on you but I will tell you that bitcoin is a major asset to recon on. if Michael J Saylor and somany business tycon can use bitcoin as a major asset investment why will I use it as a side hustle. and moreover when saying bitcoin should be used as a side hustle you make it look thus like a short term profit mechanism while it's a long term asset.

although it depends on how you think or feel about bitcoin. yes bitcoin may fall to even zero but there are many prove to why bitcoin may not fall to zero no matter the speculation. and I have strong believe and prove that bitcoin will not fall so soon and I have proven a little bit to you in the last explanation in no 4 of my reply. and another thing there is that the dip in price of bitcoin is not a bad signal or sign of bitcoin but an  advantage to HODLers to capitalise to still accumulate more and not seeing a different picture.

Bitcoin will keep increasing in value if there are more people chasing after it and that means more liquidity flowing into the market. With Trump publicly supporting bitcoin it means that some influencal people around the world will start developing interest/confidence in bitcoin and they will try to invest in it. If Trump should win the US election and he keeps his words by making the United States bitcoin friendly for miners and investors and make policies that will favour bitcoin, this will no doubt make bitcoin appreciate more in value, because other nations will want to follow that path. And this will help in wide spread and mass adoption of bitcoin. Even though Trump on his own cannot decide where bitcoin price will be, but his actions will bring more people in and when more people comes into bitcoin investment it will only result to more demand for bitcoin, and when the demand is higher and supply is limited you know what will happen to bitcoin price right? So political events plays certain roles that influences bitcoin prices either upward or downward.

I wish I can lay hands on a post that suggest that the way to becoming rich is to master one skill (can be a business, product, act, practice etc) and be efficient in it. The emphasis is on one skill and if you study the rich people of the world, most of them became rich through one product and are known for such product. Just take a mental picture of this, you will understand better. In my state, the richest man in one of the neighborhood deals on umbrella. He is richer than people in oil and gas and even politics but no one could imagine that an umbrella dealer who ship in several containers of umbrella could be that rich. What I'm saying in essence is that people should start focusing on bitcoin instead of this diversification of a thing that can turn out to be a big distraction.

Bitcoin is enough for us here, if we master the act of buying and holding, we might be building wealth that we will be remembered for by generations to come. Imagine when bitcoin hit $1 million, how many people would have been made. It may seem impossible but it will happen, just that no one know when.

@Zack5000 I think you misunderstood EluguHcman
narratives as his explanations was not in any way suggesting or generalizing cryptocurrency in terms of Bitcoin and other coins perhaps he also made use of Bitcoin in his narrative as to adding meaning to his narration and I don't think there is any problem with that in as much as it is a Bitcoin thread his reference was very clear and understandable, the only problem I have with EluguHcman post is that he prioritized buying at the dip whereas the DCA strategy allows you to buy at all times irrespective of the market condition.

Hey we ain't talking about cryptocurrency or any form of shit coins here as our major discussions here is strictly Bitcoin related so if you want to talk about some pump and dump coin, you channel your energy to the alternative cryptocurrency discussion sections however, I don't know the coin the YouTuber bought but if it was bitcoin that he bought at a DIP price and it DIPs even further, it's not for him to panic because every DIP is an opportunity to buy more at a DIP price which is also an advantage to make more profits in the long run.

However, Bitcoin investment is not for the weak, faint hearted or emotional people so if you must invest in Bitcoin then you must do away with emotions especially when a DIP happens and from what I saw on the YouTube video the man is actually blaming his friend for persuading him to buy Bitcoin with the orientation that the price will increase after he has bought but the man bought and the price DIPs which is to say that if anyone wants to persuade people to invest in Bitcoin then they should be open and let them know about Bitcoins volatility, about the upwards and downwards price movements so that when the price is DIPPING they won't panic at all and begin to blame you. You should make them understand the need to have a long-term target and shouldn't worry about if the price skyrockets or Dips, they should be more interested in being consistent in their DCA and accumulate a whole lot of stash in their portfolio.

I don't even care to know the coin he invested in but if it's not Bitcoin then he should bear the brunt because if he don't have this experience it will be difficult for him to know that bitcoin is the only coin to invest on and have peace of mind. I have seen a lot of people make the mistakes of investing in altcoins and shitcoins and when it fails them they still run back to invest in Bitcoin so if things like this don't happen to people who buy coins that are not Bitcoin, it will be difficult for them to value Bitcoin and know that it is the only coin worth investing on.

You're right here. To the best of my knowledge, Bitcoin has been the best investment so far but it doesn't mean that there isn't any other investment that is successful in streamlining. Let's put aside the knowledge we have known so far in Bitcoin and be realistic as a layman here. When investing, normally, people want to diversify because they doubt that just investing in one thing alone for a long period is much risky. They figuring the positive and negative consequences that may occur. If the investment doesn't go out right what would be their faith for all those long periods?

In the real world, what truly increasing a persons net worth is an assets, not his income. And it is only the asset invested in that can make him wealthy including Bitcoin and other assets. If an investor wants to be rich and if his financial capability is stable then he needs to diversify into other assets not Bitcoin alone.

Well spoken mate and I love the quote. Do you know that it is logical if you have been accumulating and holding Bitcoin for several years (at least 5 years), yes the potential odds are there that they will make a good profit because Bitcoin is higher in price in the long term. And i have see people with the age of 50+ as mentioned taking super and greater risk in aggressiveness and diversification because time starts to get behind them and it freaks them out. Investment is all about risk if an investor chooses to diversify then it is worth it but if he believe more in Bitcoin he can invest in bitcoin more than any other asset.

Wonderful!

Lol well that's true the word cryptocurrencies is the general term use for digital currencies ( like bitcoin, altcoins etc.) So you mentioning cryptocurrencies kinda sound off , so better still you would have just make use of shitcoins and altcoins, because bitcoin is also under cryptocurrencies. So that those that are new to bitcoin will get the picture clearer .

But what you are saying is right most folks usually have the mindset that they can get rich quick by investing in some random shitcoins and somr may think that they are diversifying not knowing that they are only multiplying the risk in it . So inorder to avoid stories that touches ones heart just focus on building a better bitcoin stash .

Some new folks here might get confused trying to read down your explanation, did you know that cryptocurrency is a general name given to all the coin including Bitcoin and shitcoins? I almost got confused when reading it because you mentioned cryptocurrency how untrusted they are which means Bitcoin in included so try and give it a clear clearification so newbies will get full understanding of what you are actually talking about, if it is altcoins, shitcoins, or Bitcoin you specify the particular one you are talking about rather than generalizing it to cryptocurrency because Bitcoin is also part of cryptocurrency.