Topic: Buy the DIP, and HODL! - page 148. (Read 131228 times)

I disagree with your statement partly because long term investing is not risk free. Investing in Bitcoin or other coins certainly involves risk. If you are a professional investor then you are used to taking risks as the price of any currency is not always the same and fluctuates constantly. This is the picture we see in the cryptocurrency market.
However, although the investment involves risk, the level of risk in Bitcoin investment is relatively low. The risk level of Bitcoin investment is low because investors buy and hold the currency for a long period of time by buying and accumulating small amounts in what we call the Dollar Cost Averaging method. If you want to earn substantial profits, investing in this method requires you to plan to hold the investment for a long period of time.

When you hear of regulations what comes into your mind? If you don't know let me tell you the answers is government authorities. And how does new government comes into office? It is by political process. Let me tell you if there are strict government regulations in every country against bitcoin, it will hit hard on the bitcoin community. Even though it won't halt the full operation of bitcoin, it will instigate fear in the minds of majority and there will be a declined interest in bitcoin investment, because nobody would want a total clamp down from their government. You have seen some countries that has strict regulations on bitcoin, tell me how robust is bitcoin activities in those countries and compare it to countries that are bitcoin friendly like El Salvador whose government has made bitcoin a legal tender. You will see that there is a clear difference, that's how far political regulations can influence bitcoin investment. Now let's narrow it down to the point where government at all levels around the world recognise bitcoin as legal tender and right to self custody, don't you agree that more investor will come in? And the demand and supply you are talking about will be more intense, and it will have an impact on bitcoin pricing.

You are misunderstanding me @salamuh what I said is that politics has influence in bitcoin growth both increase and decrease but I did not say it's only politics that made bitcoin go this far, you can recheck my statement. I made references to others factors that increases the growth of bitcoin but I was saying in reference to the conversation between @jutsbilwith and @btcdeybody, but from your statement it make me understand that you don't know that the factored I mentioned are factors that cause increase and decrease in bitcoin you can take a look at this  link and lean more.

Let me ask you a question, are you trying to say that the only reason why Bitcoin price has gone this far from beginning to this point is as a result of political influence?, let me tell you if politics had influence on Bitcoin from the beginning most government would actually influence there citizens to stop investing on it since they cannot control it, don't get me  wrong I have nothing against politics but the idea most people are having about politics in contributing to the growth of Bitcoin is what I don't really understand, or are you saying that if there was no politics Bitcoin would not have gone this far?.


However even the five factors you believed has influence on Bitcoin growth actually had nothing to do with politics and also we know that market is all about demand and supply but in terms of media I don't think it has any serious effect on Bitcoin because Bitcoin is  not any kind of coin that would possibly be manipulated by media influencers however on the aspect you mentioned Rumors I don't really understand what you meant by that.

politics has influence in bitcoin growth don't say it as if you are not sure because if you check properly the factors that help to increase or decrease bitcoin growth, you will come across something like

1 demand and supply 2 market sentiment 3 rumor
4 media and news 5 regulation

and the number 5 which is regulation, falls under government or politics that affect bitcoin. in which ever way you guys put it politics have a role to play in bitcoin growth not saying it as if you are not sure. Donald Trump knows truely that he can use political power to influence the people to vote for him because he knows people love bitcoin. and people believe that if Donald Trump is elected he will do more better this time in making bitcoin popular and more people would love to invest in bitcoin and increase the growth of bitcoin. and more people will develop interest and adopt  bitcoin massively. which Donald Trump would have done when he was in power maybe he reserved bitcoin interest to use it against the next election to capture the minds of other to vote him because he knows more people are bitcoin fan. and when he preach about the father "bitcoin"the children will have no option than to follow. you can see that politics has influence on bitcoin. not only politic, business tycon and celebrity and other influencers has a role to play in bitcoin growth. just like I see the footballer Messi as an ambassador of bitget exchange. that will make most of his fans to use that exchange. so anything is possible in bitcoin growth.

Exactly, Bitcoin has been doing well before now and even with or without what Donald trump said Bitcoin will still do well I could remember years back when same Donald trump was saying bad about Bitcoin yet it doesn't change anything and now he is saying he want the remaining Bitcoin to be made in USA which will or may not be possible or happen and I want to believe that he is up to something but people are yet to find out and remember he's a politician and he would've probably map out things I mean this could be a strategy for him who knows...

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.