Topic: Buy the DIP, and HODL! - page 397. (Read 108321 times)

Truly DCA is a good method especially for the beginners who are still managing to accumulate but perhaps DCA doesn't guarantee your risk management because sometimes a beginners could misunderstand DCA strategy by over investing without having a plan for emergency funds, so let's not view DCA in one direction which is risk management and accumulating a bit by bit but we should also consider what will happen if being overwhelmed without considering other needs that could arise and will need urgent attention.

Perhaps there is also another strategy that's also similar to DCA strategy but is quite the opposite which is called LUMP SUM,  actually this strategy is only advisable for the experience traders who understand the concept and fundamental analysis of Bitcoin market and it potential because this strategy has to do with an investor that sees a good potential of particular coin such as Bitcoin and invest a very huge amount of money and holding it for long time with the believe of making a huge profits, so this strategy could also be refer as a risk investment by risking a huge amount and expecting a bigger profit but one of the good thing about it is that investors that uses that strategy is not affected by the huge amount invested because there are a lot more on were it came from so the strategy seem to be only meant for rich investors. so is not advisable for beginners to use this strategy.

Right now if there is a possible fall, then buy because it is intended that bitcoin can reach a great ATH soon, if some say that bitcoin will fall and if the weakest sell, then you have to buy from ca opco, you have to be smart, I like it when bitcoin falls, because it is an opportunity to have more satoshis, only the weak-minded are the ones who can eat from the bad news of bitcoin, here there is only room for people with superior intelligence with a millionaire mentality, and the ones who don't want to So believe that they continue to believe in the news and the economists who talk about any atrocity, I follow Robert Kiyosaki, but I think he still needs more Financial education , because there is bitcoin here for a while.



source; https://cryptonews.com/news/bye-bye-bitcoin-robert-kiyosaki-weighs-citibanks-blockchain-initiative.htm

I'm not saying anything about FIAT money, it's something that you can go to the ground now if you want, but not with Bitcoin.

Yes you are correct, if I wait for only the dip I am just heading to only one direction and that direction is just for Bitcoin price to reduce just like you said, but if I am fully prepared for the investment, I will continue buying enough BTC until I am satisfied with the amount or numbers of btc that I have in my wallet.
With my schedule, from now till ending of next month I am planning to buy some BTC with the little money I can afford and when I buy I will used the DCA method to accumulate more coin and I will also hold for long term.
I  have a job I am doing so far, but what is keeping me from invest is I haven't keep separate money for my investment that is why I said early that maybe before the ending of next month I will invest in Bitcoin.

I feel that what you are doing is more or less setting the record straight like they do in the academic world... that I understand perfectly well and I agree with you. Even though we might not want to go this route of aligning with the formal world in terms of regarding Bitcoin as not inflation hedge since there is no official supporting document, deep down inside, you know that those of us that belong to this digital economy see Bitcoin as inflation hedge. majority of us will never save our money in fiat but in Bitcoin because everyday fiat is losing value and in some countries, there is constant devaluation happening. Furthermore, if you have been following some of the Bitcoin believers like John McAfee and Robert Kiyosaki, you will see them express their confidence in Bitcoin as inflation hedge while they enjoy the feelings fantasy of the death of fiat .

So it is more of something common among Bitcoin believers to see Bitcoin as inflation hedge and so far it has been working out as you already confirmed.

In short, MSTR makes bitcoin purchases using the DCA strategy approach, because of what they often do, such as purchasing at quarterly time intervals, even though there are several months that they don't fill in (perhaps they also ensure consideration of price, time and capital they have). for bitcoin purchases on several occasions). I understand better the strategy carried out by MSTR by purchasing bitcoin using a DCA strategy approach with a large scope of opportunity, of course they are different from individual investors who carry out the DCA strategy in general.

I hope to understand how to use the DCA strategy and how to approach the DCA strategy.

I agree with the other points of your post.Moreno233.

But in the above cited portion, you fairly accurately described what MSTR is doing.. which is that they have been buying BTC fairly consistently based on their own cashflows (what capital they have available) and they do not seem to care too much about price.. they just seem to assume that BTC is mostly going to go up in the long term, even though not really being sure about what BTC is going to do in the shorter term. 

That pretty much is DCA.. even though you said that they are not doing DCA.  Probably the ONLY things different from DCA is that they are trying to front load their investment.. and their increment for buying and/or considering to buy seems to be on a quarterly basis (or at least they report what they did, if they did anything on a quarterly basis).

In MSTR's case, it may well be that front loading really does not make too much if any kind of a difference in regards to their largely ongoing buying of BTC in a kind of DCAing approach... that also might not be exactly on a weekly or monthly schedule, but seems to somewhat be quarterly. .even though there have been some quarters in which they did not buy any BTC.... yet I do believe that they are assessing what to do in regards to bitcoin, if anything, on a quarterly basis.

Waiting for the dip is not always good. Although I am not yet an investor, I have observed some movement in the Bitcoin price chat. I wanted to buy Bitcoin when I had the money and, as of then, Bitcoin was $20k, but I didn't buy it because I did not have information and any strategy that I could use to accumulate more coins whenever I have more money saved separately for investment. Since I joined this forum, I have learned how to apply the DCA method whenever I start accumulating BTC. Bitcoin investment is productive when an investor has a strategy.
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Waiting for the dip is not always good.. especially if you don't have any bitcoin.

If you are waiting for the dip, then you are preparing for ONLY 1 direction, which is down.

One of the basic ideas of learning about bitcoin is to prepapare yourself for either BTC price direction, which largely means that the overwhelming number of people (including uie-pooie) don't have enough BTC.. they (and you) are not prepared for UP.

How do you get prepared for UP?  You start buying and you continue to buy until you have reached enough of a BTC stack size that you feel that you are prepared for UP.

So get started sooner rather than later rather than being a no coiner.. and sure it is better to be a low coiner rather than a no coiner and even better to be a lowcoiner who is constantly trying to increase his/her BTC stash size rather than a lowcoiner who is just waiting around and not doing anything besides talking about possibly getting some BTC some day.

The power is in those who act and also in those who try to act in a reasonable way that they don't cause themselves to have to lose their coins.. so whether that is $100 a week or $10 per week or some other amount that you believe is sufficiently aggressive but not too aggressive that you end up having to sell coins at a time that is anything but at a time that is of your own choosing.


Bitcoin is whatever you are able to make it to be, including a way transact and move value and also a way to store value that so far has seemed to have had been not very correlated to traditional asset classes.  Of course in the short term there are some kinds of correlations and even seemingly correlations that people frequently misread their meanings... Better if none of us is getting distracted in our attempts to pigeon-hole or limit what bitcoin is, even though surely bitcoin does not do all things, but it does create a lot of strong incentives in terms of serving as the soundest money that the world has ever seen including the value of it being very portable, very verifiable and something that bitcoin users are able to secure on their own without third parties.. even if sometimes there can be some technical challenges in regards to the various ways that individuals might choose to hold their coins and those systems are still evolving, some of them more user-friendly (and secure) than others.

Basically, there is a lot to learn by those (beginners) when they want to start or enter the world of investment, especially in bitcoin, not always focused on "big profits". Not everyone can accumulate very precisely, especially for beginners, and as a result they are very likely to struggle to get bigger returns in the future as most of us always want. But this is not the end of the world, totally agree with you, I think if they have a clear and strong goal with a good plan for a big profit then they need to take some time to study it in depth and detail, it is never too late for change and progress.

True, until now DCA will always be the better solution, especially for beginners who certainly don't know many things that are there and that they have to prepare. Maybe they haven't experienced some of the surprising bitcoin (negative) things, you might be surprised. And to minimize your losses and also obviously with your mentality then there you have to approach in depth with DCA, use this method so that you as a beginner still feel safe and comfortable, you just need to always consistently set aside a little of your remaining money every week / month.

Seeing from the situation that occurs there is no standard rule that says bitcoin as an inflation hedge but in this case we must also be aware that bitcoin can be one of the fiat hedges and that I have indeed felt on the other hand regardless of whether this is an inflation hedge or not I actually don't really care because I run from what I believe in and bitcoin for several years has been my belief in investment despite all the debates that exist I just do what I think is right by being in bitcoin.
Btw on the other hand when talking about bitcoin and hedging I've read some actually pretty good research that some people have done.
There are 2 versions where one is the local language of my country and the other one can be read universally because it uses English.

You can read it if you are interested.
https://www.sciencedirect.com/science/article/abs/pii/S1057521918307622
file:///C:/Users/siganteng/Downloads/360-Article%20Text-1400-2-10-20230109.pdf

To me, Bitcoin is still at it cheapest price at the moment because Bitcoin have the ability to change future narratives and plans to changes it price and value at every 4th year which is call Bitcoin halving where when Bitcoin circulating supply will change significantly by half it current block size.


That features alon make Bitcoin a guarantee asset to hold and for that Bitcoin will be vest at whatever price as ling as you have the resources to invest in it and also have the ling term mentality because since Bitcoin is a free market several factors can affect bitcoin price so you must have a long term conviction before buying Bitcoin.

By design, Bitcoin is not an inflation hedge; like you have said, it was not mentioned in the whitepaper as an inflation hedge. However, the realities on ground have positioned Bitcoin as the currency that have withstood inflation. The value of Bitcoin have remained favorably high against almost all fiat currencies.  Think of it from the angle of an investor, and let us say you have some funds 5 years ago and you decided to save some in the banks and the other you converted to Bitcoin and stored safely. Today you decided to check what both savings can get you, only to realize that the money in the bank has depreciated in value... assuming it could buy you a car then and today you realized it cannot. On the other hand, the amount you converted to Bitcoin, could buy you a car together with a house.  It is therefore, very correct if someone in this situation say that Bitcoin is an inflation hedge.


It is expected that Bitcoin will even gain more traction in coming years because many

Last time I checked there has been no argument that Bitcoin is an inflation hedge or not. Even if its the only cryptocurrency that people believe to fight against inflation doesn't doesn't mean its purchasing power against other currencies will no be weakened. Perhaps you misunderstood at some point what was discussed here. If you have been an early adopter of Bitcoin or should I say 6 years back you bought bitcoin then yes you can proudly say that it has been a hedge over inflation that has happened within this years, am sure that was when the theory that bitcoin can stand against inflation was popular.

Also, the Bitcoin whitepaper, since its creation, has never mentioned anything about it being an inflation hedge. It was designed to make peer-to-peer transactions faster, and it does its job perfectly. Therefore, there is no need for argument on this statement.

Waiting for the dip is not always good. Although I am not yet an investor, I have observed some movement in the Bitcoin price chat. I wanted to buy Bitcoin when I had the money and, as of then, Bitcoin was $20k, but I didn't buy it because I did not have information and any strategy that I could use to accumulate more coins whenever I have more money saved separately for investment. Since I joined this forum, I have learned how to apply the DCA method whenever I start accumulating BTC. Bitcoin investment is productive when an investor has a strategy.

I don't think buying Bitcoin have any measure of efficiency because the various methods being discussed are based on personality, peculiarity, and preference. I will try to explain and hope you understand. First there are people/institutions that have capital at their disposal and can buy sizeable amount of Bitcoin without blinking an eye. For instance, MicroStrategy have been buying Bitcoin in large quantity through instant execution (I will call it instant execution because the quantity is not uniform even though they buy often). They really do not consider the price or the dip... they just buy and this shows that they do not adopt the DCA method.

Secondly, there are people who have been applying the DCA method to fill their Bitcoin portfolio because they find the DCA method better and more convenient for them. You cannot say they are not efficient because in both cases, they achieved their target which is accumulating certain quantity of Bitcoin at a predetermined time.

So, the concept of efficiency do not really apply so long as the purpose is achieved.  Both aggressive buyers and those using DCA do that to satisfy their objectives and the method adopted depend on preference.

It has been abundantly stressed that DCA method does not care about the bottom or the price. That is to say that seeking for the bottom while at the same time claiming to be applying DCA is a little challenging to understand because you might be mixing up entirely different concepts. The  beauty of DCA is that it even help you eliminate the worries that comes with seeking the bottom.

But with all you have said , are you Investor of bitcoin ? because the way you type your post? it just a stand of neutral person here in forum.

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Please don't lose your hope and chance  , invest now or be blame yourself in the future.

specially now that the price is lowering and yes this is the best chance to buy for the net couple of month or at least a year of holding.

Look at the title? that stands this very moment , from 67 thousand dollars now down to 26k? take this advantage mate and celebrate with us sooner.

Well this is also one of the important points that we should pay attention too, it's not funny when we prepare for a better future, but we feel a heavy burden at the moment. Everyone has different abilities as well which has been widely discussed, it is not a problem for those who have a high income to allocate $100 every month or even every week. But for those of us who have lower incomes, we should definitely be more adjusted to our abilities. Whatever the amount is it doesn't matter as long as we feel comfortable and not burdened, the most important thing is that we must be consistent.

I already account for the need or the preference to change strategies as you accumulate more bitcoin and as you become more familiar with bitcoin (and even your own particulars).  If you are brand new to bitcoin and you hardly have any clues, you may well be much better off just setting some kind of an automatic buy of $10 or $100 or whatever happens to be your amount and don't think about it for a few years and then perhaps come back and study the space more at a later time or maybe after you have spent some time investing, the growth of your investment (merely from having had been buying for a decent amount of time) might thereafter inspire more studying into the topic. and even to be directed in such studying based on the performance (or lack of performance) of your BTC portfolio.


You still have to spend time learning about what is "more efficient" accumulation, and you are not going to know as a newbie and you are going to have to spend time studying.. and sometimes people don't have time, so it is better for them to just employ a more strict DCA approach.


Yes.. someone who already has a lump sum of value is going to have more options.

many times people do not have lump sums of value that they are either going to put into bitcoin or want to move in order to put into bitcoin..

If you have a lump sum available for investing into BTC, then you have three categories which is lump sum buying, DCA and buying on dip.  So a default division might be to divide such lump sum into three rather than thinking about all or nothing in terms of any one of the categories...

I have never suggested to ignore those three categories, even though DCA does tend to be better for most people and most people do not have lump sums.  I also don't necessarily consider that new cashflow coming in has to be DCA'd. so for example if a person has $100 per week available, he could choose to divide it into two.. half for DCA and the other for buying on dips.   

And again complete personal discretion and it is good to know the three categories and to figure out how much to emphasize on each one, with perhaps the default being DCA until getting up to a certain level of BTC.. and so as your BTC portfolio gets bigger, your options increase too, which tends to remove DCA from the default position.. especially if you start to become more informed about various aspects of your finances, your psychology and BTC.


I fixed your link.

Of course, that website can show you how many dollars you would have spent for $100 per week over a 9 year period and also show how many BTC you would have gotten, and of course, the upcoming 9 years are likely going to result in way fewer BTC.. Yes.. the last 9 years ended up getting you nearly 39 BTC for that $100 per week... and the next 9 years might well not even get you 0.5 BTC for that kind of level of weekly investment into BTC.  WE cannot tell for sure, but we an tell how aggressive that we are able to be in terms of our own life balances, and also realize and appreciate that there are no guarantees in regards to whether we made the right choices in terms of our chosen balances (what we invest into, how we invest and how much).


You don't seem to understand bitcoin very well, jasonjm. 

To get a bit of a better perspective, you might need to zoom out a bit and you might even need to study what bitcoin is exactly.. and how it adds to the various kinds of incentives that are likely going to change the way that people invest... even though it could well take bitcoin more than 150 years to get to its value in respect to gold for example. which would be around 1,000x gold or more.

So how do those dynamics of sound money work?  Value gravitates into it in the long run even if a certain amount of fuckery, misinformation, manipulation still may well be contributing in the short term, but the longer that bitcoin is around, the more people are actually learning about it rather than spouting out ill-informed talking points which seems to be what you are doing jasonjm.

Well, in the past, we have seen that when there is economic uncertainty, the price of Bitcoin also plunged. For example, during the COVID-19 pandemic, BTC dipped below $4k, so did the rest of the stock markets. Arguing that Bitcoin is an inflation hedge is still not a valid argument. Bitcoin is an asset but has and will fluctuate when there is economic pressure.
Everyone is investing in Bitcoin to earn profit. But, when we look at the other side of the picture, it is evident that Bitcoin is not as decentralized as we say. Major institutional investors are increasing their portfolios, and at some point in future, they will manipulate the price at will.

Therefore, having a long-term plan structure must be able to ensure that what we are betting on in the future can support success. Regardless of what the current economic cycle looks like, value storage will continue to be paid attention to by institutions. I know the impact on Bitcoin but at least large ownership controls we also need to worry about. Thus, the stability of Bitcoin holders and institutions aims to maintain Bitcoin as long as possible amidst threats.

Besides you see it as positive, do you know how vulnerable political and economic issues are when you take advantage of the Bitcoin industry to facilitate your interests? for example, presidential candidates or regional representatives who proclaim that if elected they will support the adoption of Bitcoin, but do not consider their country's policies with the fact that everything needs equal regulation. So that people who have high hopes take advantage of their voting rights feel disappointed in the end. Can we avoid it? no, we can only minimize what we maintain is truly within our own control rather than relying on policies that will not be realized at all.

Now that the world is seeing increasing levels of uncertainty, Bitcoin would be a possible contributor. As an asset Bitcoin has proven time and again that it rises more sharply when political and economic issues develop, which I think will bring more institutional investors into the domain to balance their portfolios. It's taking risks and leaps but that's the real investment in technique and the mechanics are individual for sure.

At this stage of this current Bitcoin woes one should not have high hopes for Bitcoin price movements. Because it is impossible to tell exactly when Bitcoin price will move, we should save money and invest at the right time. Money must be backed up and Bitcoin must be cautious as investment should be prepared and prepared in advance. Bitcoin halving in 2024 is much more likely to hit a high in the coming months than this halving is expected to halve next year. And if you invest based on your thinking, you can definitely face losses because Bitcoin price will not touch the peak this year . 2023 So based on your thinking you can get hurt if it doesn't reach a certain price (based on your thinking). Bitcoin price will definitely break through the high price touch next year after the halving but no one can say exactly how high the price will be. You can't push the investment mindset overboard, always have a backup mindset.