Overall 2023 was a good year for bitcoin and bitcoiners.
Yes, it's relatable to those who took the very opportunity of starting up their Bitcoin journey and also those who kept consistent in their Bitcoin accumulation. The market was open to everyone but not everyone seized the opportunity, so putting into consideration the way the market is moving it will also accept more investors, likely few months after the halving then we expect to experience an ATH, which may not be the perfect spot to hop in.
For sure, we cannot always know how our investment is going to do, and surely those who had the bulk of their BTC investing already accomplished prior to 2023, would have been able to measure progress in their stash during 2023, and there could be some false sense of security if a guy continues to invest in BTC for the whole of 2023 and the BTC price is continuing to go up, yet at the same time, many of us don't necessarily have a choice regarding when we hear about bitcoin and when we are ready to get in, and so most times, we have to start from where we are at - including considering if we want to DCA or if we might want to do a bit of front-loading in a kind of lump sum way, or alternatively waiting for more dip (or buying this particular dip in a lump sum kind of way), and even if we do some variation of front-loading of our BTC investment and we might even decide to continue to accumulate BTC, even if the BTC price is going up because we might conclude that we don't have enough, and even if BTC continues to go up and various new ATHs are reached, if we have little to no bitcoin, we may well want to continue to accumulate, and even if we have a decently sized BTC stash, we still might want to continue to accumulate BTC, even if new ATHs are reached, even though in those kinds of circumstances of continuing to buy, even during ATHs, we are likely going to be more advantaged by the BTC that we had bought earlier rather than the more recently purchased BTC, yet as long as our BTC investment timeline is 4-10 years or longer, it still may be better to just keep purchasing no matter what the BTC price situation until our BTC stash size starts to justify that we might want to modify our BTC accumulation approach in accordance with how large our BTC stash is getting, which still may not be the case of even selling any BTC until after at least a full cycle, maybe even 1.5 cycles or more before we might want to change our strategy from accumulation and into a kind of BTC maintenance strategy.
Of course, if we are new to investing and we DCA for 4-6 years or even longer than that, we still might not be in a position to really be feeling like we have accumulated a lot of wealth, and surely if we are coming into BTC after having had already accumulated some wealth, then we might be able to be way more aggressive in terms of both deciding and following through with a more front-loaded BTC investment/accumulation approach.
I cannot remember if you had stated some of your particulars Obim34 - yet even your forum registration date is not very far into the past, so if you are only recently starting to accumulate BTC, such as even less than a year, then from my point of view it can take a quite a bit of time to build up your stash in such a way that you should even be considering reducing your DCA amount, even if ATHs end up being reached in the next 1-2 years, and sure there could be some value in modifying your approach if it starts to seem that we are in blow off top territory, and so these are not easy choices in regards to how to manage the situation in terms of holding off buys or letting cash to build up in terms of preparing for dips that may or may not end up happening.
Why should he divide the money into 3 parts? If he continues to invest in DCA method then I can tell him that you invest in DCA method weekly. If he follows the DCA method he will continue to invest in Bitcoins regularly. And there is no problem even if the market moves down, there is no problem even if the market moves up because the main observation of the DCA method is the average calculation. If buy bitcoin during high speed like 42k current price, if buy bitcoin from here and if buy bitcoin dc method during 48k price then average price of bitcoin will be 44k budget. This is the reason why most investors prefer the Bitcoin BCS method, on average, for many reasons.
If he divides his fund into three equal parts, it will give him a very comfortable way of accumulating Bitcoin without playing with his emotions. For instance, if his currently using the DCA strategy to accumulate Bitcoin at regular intervals, and Bitcoin makes an amazing move to $60k per Bitcoin, he can use the already kept fund for a lump sum to buy Bitcoin. He is not too sure if the Bitcoin price will go below $60k, and if the Bitcoin price dips to $35k he can buy the Bitcoin dip with the already kept funds to buy the Bitcoin dip because by the time the interval to buy Bitcoin through the DCA strategy will reach Bitcoin price might be making an upward trend. After buying Bitcoin with a lump sum and buying the Bitcoin dip, he can continue accumulating Bitcoin with the DCA strategy.
Your explanation is not really that great, Mayor of ogba. Of course, each of us may well need to consider all three of the possible categories for dividing funds, but it might not make sense to follow all three of the categories at all times. So, usually, if you are not making very much sense in terms of how you might use any fiat that you save up, then you may well be better off to just buy regularly and not save up because if you are holding back too much cash, then you may well end up fomo buying when the BTC price is going up rather than merely having that cash available for when the BTC price dips, that is if you even have enough cash to be holding aside for such purposes... or if it would be worth it.
Let's go back to my the five examples from my earlier post.
Example 1: This person has not accumulated any bitcoin, and has an income that is between $300 and $2k per month and most months his income is around $1,200, and monthly expenses of between $600 and $1,000 per month and most months $800. This person has a debt of $1,400 that he services at $50 per month with a 6% interest rate that he services at $50 month with an expected payoff in 30 months (2.5 years), and he has an emergency fund of about one month's expenses $1k.
Example 2: This person has the same monthly income, expenses and debt and emergency fund of Example 1, yet he had been accumulating BTC at about
$10 per week in the last 18 months with $810 invested and about 0.0378 BTC accumulated (currently worth $1,625.40).
Example 3: This person has the same monthly income, expenses and debt and emergency fund of Example 1, yet he had been accumulating BTC at about $100 per week in the last 18 months with $810 invested and about 0.378 BTC accumulated (currently worth $16,254).
Example 4: This person has the same situation as Example 2, Except that he both lump sum invested into BTC and started to DCA at $10 per week in the same way as Example 2, The lump sum amount was right around $2,200 and he got 0.1 BTC out of those early lump sum transactions. Therefore, his whole BTC holdings is about 0.1378 BTC accumulated. (currently worth $5,925.40)
Example 5: This person has the same situation as Example 3, Except that he both lump sum invested into BTC and started to DCA at $100 per week in the same way as Example 3, The lump sum amount was right around $11,000 and he got 0.5 BTC out of those early lump sum transactions. Therefore, his whole BTC holdings is about 0.878 BTC accumulated. (currently worth $37,754)
If you might suggest that after a year and a half investing into bitcoin you might either be in the position of the Example 2 guy or maybe you are in the position of the example 4 guy who had lump sum invested, and then thereafter continued to DCA.
If so far you are only investing $10 per week, but you have an emergency fund that is ONLY 1 month's expenses, then maybe part of the reason that you are ONLY investing $10 per week is because you might want to build up your emergency fund.. None of the hypos talk about a guy who is otherwise building up cash to hold aside... but if either the Example 2 or Example 4 guy were to suddenly receive some kind of bonus, such as $1,200, then at that point it might become relevant to consider the three categories of BTC accumulation, but also it might be relevant to consider how lowly funded his emergency fund is too... In that case, of the extra $1,200 coming in, how is he going to divide it? Does he really need to employ all three categories, and 4 if we consider the emergency fund, and 5 if we consider the amount of his debt. It is a fortune for anyone to be receiving some extra money, since that might allow him to be able to better buttress his various BTC accumulation practices, but even with new money coming in, he still might be tempted with consumption matters, and for example if he were to have a spouse, the spouse might have some ideas about how to use that extra money too.
Overall 2023 was a good year for bitcoin and bitcoiners.
Yes, it's relatable to those who took the very opportunity of starting up their Bitcoin journey and also those who kept consistent in their Bitcoin accumulation. The market was open to everyone but not everyone seized the opportunity, so putting into consideration the way the market is moving it will also accept more investors, likely few months after the halving then we expect to experience an ATH, which may not be the perfect spot to hop in.
And what pleases me most is that 2024 promises to be an even better and luckier year for those who have been accumulating bitcoins. Now we are definitely not at high bitcoin values and the potential for growth is very large. I argue this by the fact that there are very few hamsters in bitcoin right now, and the crypto world is silent in the news. And you all know that if even housewives start buying bitcoin, then this is a clear sign that the price will soon go down and there will be an opportunity to buy on a new DIP.
Of course, there is no guarantee that 2024 will be better than 2023, but surely it seems that a decent amount of ongoing upward momentum is growing, as well as various reasons for the momentum to continue to grow in the next year or two. .including if we consider that kind of upward growth to be part of a historical pattern that bitcoin had already been following.. even while the past does not cause us to have a lot of confidence that the same pattern will repeat in the future, while at the same time, there are no real competing theories regarding what is likely to happen with bitcoin that negates that we might have a certain amount of expectation that the next year or two have good chances of continuing to be UPpity, overall.
Our position size can also hedge regarding these kinds of matters, including considering if we have some BTC then we are way more prepared for up than if we don't and if we have a sufficient quantity of BTC (relative to our overall financial situation - we might even describe some of these as more aggressive), we are likely better off than those who are lowly allocated (or whimpy about it).
I frequently suggest that it is way better to be a bit on the aggressive side rather than on the whimpy side when it comes to BTC accumulation, but even whimpy accumulation is better than being on zero.
And, regarding your final sentence, it seems to be a bit ridiculous to be making those kind of sentiment statements because surely people sometimes buy at the top and there are various price waves in bitcoin, yet it is probably better that normies get the fuck started in buying bitcoin, even if they might screw up in their earliest buys, but if they at least develop longer term strategies rather than aping in at the top, then they are likely to do better, but even if there are long term trends of BTC prices going up, we still cannot necessarily know when the top is in, and so in that regard, it is likely better that normies still get some kind of starting position no matter what the price, and if the BTC price is toppie, they can still have those first purchases at or near the top, but just continue to buy or have a plan to continue to buy even if the BTC price dips, whether that is DCA or buying dips or some combination of those kinds of strategies.
And what pleases me most is that 2024 promises to be an even better and luckier year for those who have been accumulating bitcoins. Now we are definitely not at high bitcoin values and the potential for growth is very large. I argue this by the fact that there are very few hamsters in bitcoin right now, and the crypto world is silent in the news. And you all know that if even housewives start buying bitcoin, then this is a clear sign that the price will soon go down and there will be an opportunity to buy on a new DIP.
Every dip in the Bitcoin prices is a time to buy and accumulate more. I am sure that after the ETF approval Bitcoin prices will go very high and right now they are available for a much big discount and anything under 45000$ is a time to press the buy button. The key here is that you should have the spare money and we are able to buy Bitcoin and hold them for a long term. It would be our most precious investment ever.
One great arguing with another great.
The investor may not be happier than the profit after investing.
From the way 2024 has started, we can imagine that 2024 is going to be good for the Bitcoin market compared to 2023, so now we should pay more attention to investing instead of saving money unnecessarily or keeping cash for ourselves and spending that money. I invested regularly from now on, maybe by the end of 2024 we will see the Bitcoin market double from the current level, but the investment will be ours.
Overall 2023 was a good year for bitcoin and bitcoiners.
You are right, 2023 was one of the best year for Bitcoin and Bitcoin investor. The behaviour of Bitcoin was predictable for those who cared to check, so it was easy for all types of investors, be it long term and short term, to achieve their aim.
Bitcoin lingered so much around $26,000, giving many people the opportunity to buy as much as they could for those that buy the dip, others that use different methods also had the chance to buy.
Everyone also expected that Bitcoin was going to rise towards the end of 2023 and it actually did. So it was indeed a great year for Bitcoin and Bitcoiners
I surely did not suggest that 2023 was one of the best year or even amongst the best of years for bitcoin merely because it doubled or tripled in price, and largely it still had quite a bit of recovery from a pretty bad year, so for anyone who had not gotten shaken out in 2022 or maybe even was also accumulating in 2022 - which surely it would have been even a better year in 2023 for anyone who had been constantly and continuously accumulating in 2022. But, yeah, I doubt that we are in any kind of major disagreement because in some sense bitcoin's ongoing survival and plowing through these troubling times and largely either retaining value or recuperating lost value still should provide enough information that normies (current no coiners) should be inspired to learn more and more about it... which also goes to show that even with so much press and hype that bitcoin gets in bitcoin circles and even including with quite a few financial BIG WIGS getting involved into bitcoin, we still should realize that those of us who are buying and holding bitcoin are still quite early in bitcoin's adoption phase - which also should help to inform us regarding whether we have enough bitcoin or not.
The investor may not be happier than the profit after investing.
From the way 2024 has started, we can imagine that 2024 is going to be good for the Bitcoin market compared to 2023, so now we should pay more attention to investing instead of saving money unnecessarily or keeping cash for ourselves and spending that money. I invested regularly from now on, maybe by the end of 2024 we will see the Bitcoin market double from the current level, but the investment will be ours.
Overall 2023 was a good year for bitcoin and bitcoiners.
Bitcoin has rebounded after 2 years of bearishness. The year 2023 has been regarded as a significant year for Bitcoiners. Bitcoin has embarked on another bull run, increasing in price by nearly 160 percent through nearly 2 years of high-low volatility. We see Bitcoin touching $44k in 2023 itself.
The number of Bitcoin billionaires increased by 247 percent in 2023, which can be cited as one of
Bitcoin's greatest achievement.At the start of 2023, address with a capacity of $1 million or more were around 23,795 but by the end of the year that number had increased to 97,497. At the end of last year, 90040 addresses had more than $1 million in bitcoin assets. Again 7457 address have seen more than $10 million assets. Bitcoin has been trending on Google since 2023.
We need to be careful when we are attempting to get into too much detailed analysis of actual BTC ownership based on the number of bitcoin in certain addresses that may or may not be controlled by an individual (or it could even represent value being held by various custodians)
[edited out]
Plus people in the topic who are convinced that there will be "NO MORE MAJOR DIPS" should stop thinking binarily and start thinking in probabilities. Because with the macro-economics looking bad in major economies like China and the United States, it could start a systemic event that might take the economies in different regions around the world with them.
The unemployment data in the United States will be a leading indicator in knowing if there will be a sudden crash, and if Jerome Powell starts to pivot - For the wrong reasons. The "soft-landing" might not happen. It will be "higher for longer" until something will break.
It sounds like you keep praying for a dip that might not happen. Hopefully you are adequately prepared for UP, and you are not regretting too much that you had ended up holding way too much cash in August, September and October waiting for dips that did not end up happening then, either... but hey, whatever, you do you.
I think that you inspire me to add Example 7
**, which would go back in time, like example 6, however, I may have to assume that you might not have been able to lump sum in the beginning, and that is part of your ongoing claim of being poor. .and maybe we could go with a straight forward DCA in order to argue that you would have likely been better off to DCA rather than trying to time various dips since May 2016.
Example 7: This person has similar circumstances as Example 2 with a
$10 per week investment into bitcoin, except his investment timeline goes back to May 2016 (rather than merely 18 months), so he ended up investing $4k during that time and accumulated about 1.04 BTC. (currently worth around $42,500).
And, I think that part of my point is that whatever playing around you have been doing with BTC in the last nearly 8 years, with DCA you could have had been as aggressive as your budget would permit (and you could still do that today), which ultimately may well end up causing you to invest more into BTC during any given period, and maybe even having a higher cost per BTC than under other approaches, yet the fact that the BTC price tends to end up going up in the long term, you are going to likely end up being better off by buying BTC regularly and often rather than trying to time dips... or overly waiting around to buy when you already have the money to be able to buy BTC and you still are not sufficiently/adequately prepared for up.. like you should be..because you ultimately are too whimpy in your ongoing, persistent and seemingly obstinately stubborn way of waiting around for BTC prices to fall to some never-satisfying level.
Edited to add example 7:The investor may not be happier than the profit after investing.
From the way 2024 has started, we can imagine that 2024 is going to be good for the Bitcoin market compared to 2023, so now we should pay more attention to investing instead of saving money unnecessarily or keeping cash for ourselves and spending that money. I invested regularly from now on, maybe by the end of 2024 we will see the Bitcoin market double from the current level, but the investment will be ours.
Overall 2023 was a good year for bitcoin and bitcoiners.
I have this testimony to say about the year 2023 as well. I learnt about the DCA method and started using it. I must admit that it marked a turning point in my Bitcoin accumulation with a good proportion of my Bitcoin bought within the "don't wake me up" region.
When price of Bitcoin rose above $30k, my entire asset was already in huge profit and now that market experienced some dips after the ETF approval, I'm still comfortable in profit while still buying more. I rarely look at the price of Bitcoin because I'm more focus on achieving a target set for myself because I'm not using funds meant for my daily needs rather a small fraction of my money that I can afford to leave in Bitcoin even till I retire from active service.
Therefore, I will forever look back to 2023 as a great year.
Well, maybe we might need to check back with you around the beginning of 2027 and see where you are at at that time, and surely it may seem like a long time, so getting through a whole cycle seems to be a good place to check in, and surely many times, people might still be fairly heavily accumulating BTC, even after having had 4 years of accumulation.. so then we check again and again, but at least getting to the first 4 years seems like a good place to check in.. and figure if some adjustments might need to be made.. even though for sure, any of us who are active in our BTC investment are likely monitoring it regularly, especially while we are in early accumulation stages, but we still might feel some needs to monitor it at later points down the road, including deeper kinds of analysis, regarding "where are we at?" does anything that we are doing need to be tweaked?
