Topic: Buy the DIP, and HODL! - page 504. (Read 122956 times)

Yes.  That's very insightful and informative Merit.s.  Many times we need to recognize and appreciate that it is way better to delay the arrival at any fuck you status that  we  might choose to exercise in order that if we do end up pulling the fuck you lever, then we may well have a decent chance of at least attempting to be able to live off of the expected appreciation of our principle (which would be the interest) rather than ongoingly depleting the principle which would thereby contribute to such a fund (retirement fund or whatever we might want to call it) to not really be long term sustainable, so in that regard, if we start to employ a withdrawal of our investment traditionally, 4% per year had been thought to have had been a sustainable rate - even though surely we might be able to imagine higher than 4% rates with something like bitcoin in the event that bitcoin is able to appreciate in value that tend to average at greater than 4% per year rates....

For sure it is nice to have a cushion and to make sure that we have a financial cushion that would be sufficiently robust in order to account for BTC's likely ongoing volatility.. and so in that regard, we might attempt to accumulate at such a level that would be several times higher than what we might consider to be an entry-level fuck you status amount in order to strive for an ability for our investment portfolio to be sustainable.. and for sure, if we are younger and we expect to live a longer period of time, then there may be greater concerns about how long our investment portfolio is able to last and to provide enough value to ourselves at our expected withdrawal rate to be able to last throughout the period that we are expecting to either live off of it or to have it supplement any other expected income sources that we might have... so surely ONLY calculating 10 years would be easier than if we were to have 30, 40 or even more than 50 years that we might expect to live and withdraw upon our investment portfolio.... and it would be a shame to run out of money and still have more life in us and who would want to have to go back to work in the years before their death.. (optionally might be ok. but having to do it might actually greatly lower quality of life and even feel a bit shameful).


Part of the rationale to diversify at least a little bit in terms of NOT holding all your wealth in one asset class.. especially one as volatile as bitcoin, even though surely there are some people who engage in such a practice.. which does not seem to be good financial management or even advisable absent some pretty special circumstances. such as perhaps if they were to have a pretty guaranteed cashflow that allows them to NOT have to be reliant upon the value of their investment in any kind of way... but even then, for sure, there does seem to be some value in any ability that any of us might retain to be able to continue to buy on the dip or to DCA during dipping times, rather than completely losing confidence because our investment might have had gone down greatly.. such as greater than 70% and stayed at such depressed levels for extended periods of time.. including potential uncertainties regarding if such asset might continue to drop in value further and for much longer periods, too.

 You are very correct, one needs a stable cash in flow to help you have that confidence to hold for long. when I first started my bitcoin journey, I thought because bitcoin is volatile in nature, I should and sell when I make little profit each time. This was from my poor understanding of how bitcoin accumulation works. I have a job,so I went to my Boss and told him that I want to go on a month vacation so that I can put myself together, which he gave me  the permission to go. After a while I discovered that if I don't continue to work,I will end up eating up all my bitcoin investment in order for me to take care of some major responsibilities. After one week,I said to myself if I want to have a good fraction of bitcoin then I need to go back and resume work. Immediately, I called my Boss that I will becoming back in three days to resume work and he was surprised. Actually, I intended to stop the work from my vacation but when I realised that for me to be able to accumulate more bitcoin I must have to work. Presently,am only accumulating and not thinking of the price if it dumps or pumps anymore as long as am holding for a very long period of time,that I wouldn't regret it.

This is the worst financial strategy to store all your assets in bitcoin because when their is a drastic dump in price,it will look like your doom day has arrived. A very bad way of financial management.

Well I guess this is true, because the first time I actually got into the crypto space and started my investment journey it was like I was a watchman on the market price cap and I couldn't just get my eyes off the price to know if my investment is actually going the right way or sideways. But I feel this is not solely attributed to me not having investment in different place, I think the newbie syndrome also contributed to this behavior but after I was properly grounded on bitcoin volatility I knew it was common and the bear and the dip no longer scared me again. Lack of knowledge is like a disease that kill faster than even a pandemic disease.


Well having a diversified investment or source of income is probably the best option of a strong business man and veteran investor because this will increase your chances of getting more profits and reduce the effect of to be enquired when you have all your investment in one place.

You must understand the context before doing that comment, see what they are talking about, they have talked about investing strategies in Bitcoin and they say about the bearish market, of course the subject already has knowledge in investing in Bitcoin. I will agree with you if the characteristics of the subject are a beginner who does not know the market and investment starts in Bitcoin, even though they have other sources of income they are not necessarily holding their bitcoin when they find a bloody market.

Other income is very important so as not to interfere with the ideals of long-term investment in Bitcoin.

Storing all assets in Bitcoin is a good decision (to be faster in a heart attack and higher stress) lol.
With a fluctuating market, it is certainly not a good option for financial health.

I think that Sim_card makes a lot of decent points in terms of attempts at cash management and also that we should be attempting to make sure that we have our budgeting situation in order so that we are not getting ourselves into some kind of a situation that we cannot sufficiently tolerate, and you (Dr.Bitcoin_Strange) seem to be reading him a bit too narrowly....

Sometimes we might not be saying things very elegantly, but I don't see how Sim_card is making any points that are different that the ones that a lot of us are making in terms of emphasizing bitcoin and making sure that we don't overdo our investment(s) into it... so we can try to be careful not to get reckt if we are investing and we do not sufficiently have our financial and psychological matters together.


For sure, each of us has evolving situations, and we have to be able to monitor how aggressive that we are attempting to be in our bitcoin accumulation journey.. and even if we might get to a stage of our bitcoin journey that we believe that we have mostly accumulated enough BTC and we are merely trying to maintain some kind of a balance in our BTC portfolio as compared with other assets that we might hold.. and for sure, sources of cashflow are likely to change over time, and sometimes if we have accumulated a variety of assets, we can convert one of them into a means in which we draw cash from it on a regular basis.. which might even end up off-setting some other cashflows that we might have had that might be related to work and we might choose to work less or to change the kinds of work that we do in such ways that our regular cashflows might become less regular or even dry up.. and sometimes we might choose to do those things and other times, we might be forced into situations in which some of our cashflows have dried up (kind of outside of our control and we might be faced with decisions whether we want to reestablish some of that regular cashflow through work or to perhaps sometimes just decide to lessen the amount that we work or to change some of the kinds of work that we do).

Really? You think that's just what it is? How about the decision to do so? How about those less experienced people who are yet new to Bitcoin? They may have other sources of income, but because they have not really experienced how prices can be so volatile, they can sell out of pressure just for the fear of not totally losing their invested capital.


I don't know if you read correctly what Sir JJG said above and where he said that "we cannot be 100% sure that what we see as a reliable source of income can be reliable in every scenario."

So since you already said you don't believe in carrying all your eggs in one basket, diversifying your investment or source of income is a wise thing to do.

For one to be able to hold for long, that person needs another means of income to enable him not to panic during the bear market. Also you will also be able to keep on with DCA every month for more accumulation of coins with your savings from other investment. When one is not rich,he should take bitcoin investment as a side alternative work and shouldn't just sit down and fold his arms,because if your investment turns out the other way round not in favour to you,this might cause panic for you not to lose out during the bear market. Bitcoin investment isn't an energy input investment and doesnt consume much time,as long as you know the market analysis and secure your coins safely, you can still do other jobs along side with your investment.

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No matter how small your investment is,as long as you can hold for long,and continue to DCA,you will definitely be a winner.

Having multiple assets ensures we're not overly reliant on a single investment like Bitcoin. It's also important to stay calm and follow strategies like DCA during bear markets. Preparedness and a balanced portfolio are key

Actually there is nothing wrong with saving all of our assets in the form of bitcoin, it's just that it's better to divide it into several types of investments, because if bitcoin experiences a bear market like we have experienced for a while we still have other investment assets. After all I am a believer in not putting our money in the same bag.

Certainly, as an investor, especially in bitcoin, we are worried about experiencing a nominal decrease in our portfolio because the decline experienced by bitcoin is very natural to feel, especially if it's been for a very long time. It's just that when we already know what we have to do we can be calmer in dealing with all of that.
We've been through a few times like this, so I think we already know what's going to happen next. Therefore when we have income from other jobs and have more money we are recommended to buy bitcoin when a bear market occurs. We don't have to make large purchases, we can do it with a strategy that we know as the DCA strategy.

Well, yeah if you have one reliable source of income, then it might not be so much of a big deal, if various traumas might come in the market, but at the same time, we cannot even be 100% sure that our "reliable source of income" is really going to be reliable under all possible scenarios, so it would tend to be good to have some other income sources, or even somewhat liquid assets upon which value can be drawn in the event of an emergency (or shortages in cashflow/increases in expenses).

We might not realize how correlated some of our expenses, our assets and our cashflows might be either, until some kind of a crisis event hits...

One thing regarding income sources that might come from working, sometimes it might be more feasible to attempt to find a new job (or new income source) while we already have a job, and in that regard, any of us can look like a better candidate for a "new position" when we already have cashflow options and we are not in a potentially desperate situation.  On the other hand, some jobs are physically, mentally and even time consuming in such ways that it may well be better to drop that income source when searching for new and/or better cashflow (income) opportunities, and/or it could be the case that some opportunities might not come to you unless you really are able to gear up towards whatever new income that you are seeking (could be retraining, could be learning new things, could be working on presenting a new package and even demonstrating skills and abilities to learn in such new area that contributes to your appearing to be a good candidate for the new kind of work.. and implicitly there might be some circumstances in which a pay cut might need to be taken to progress to a higher paying job or even sometimes a paycut might still be a more valuable kind of a job if you are not having to spend as much energy and time on it or alternatively that you get a lot of pleasure/meaning from the new work). 

You are absolutely correct, sir. Both in Bitcoin and other investments, when they remain unprofitable for a very long time, the investor might feel uncomfortable about them. But when it concerns someone who has different financial sources of income, they can only have that pressure for a short time, but after the thoughts slide off their mind, they get occupied with other sources that are generating income for them.

I can say that most people investing in Bitcoin are handling it in such a way that price volatility during the bear market really makes them so uncomfortable, probably because Bitcoin is just where they have all their investments. Personally, I think it is wrong to just have one source of income, particularly internet-related. One can invest in bitcoin and other physical assets.

We have this guy in the city where I live that is nicknamed "Virus." This guy has a lot of investment to the extent that on every day of the week, he receives up to $500 from different means; he has a lot of taxis and drivers that are running the taxi for him; he's into Bitcoin as well; he deals in car importation; he has a series of income sources; and even if the Bitcoin price is so low, I know he might just have a temporary bad feeling, but after some time, he will still be cheered by other inflow of funds to his account.

I used the guy as an example because if some Bitcoiners use that approach to invest in Bitcoin, they will not be deeply concerned about the long bear market as if their lives only depend on it. Above all, I know every person cannot be the same, act the same way, or have the same strength as others who can hustle with full strength to fix different income sources for themselves.

Bitcoin is just buy and hold! Hold until we have the profit that is desired.

I am not sure if you might not be overly acknowledging the knowledge that people have about bitcoin.

Part of the representation regarding how much people know about bitcoin would be their level of bitcoin adoption, and we likely don't even have 1% of the world's population that has bought any meaningful amount of bitcoin.

Sure you are saying a similar thing as me when you say that people have heard about bitcoin but they don't know what it is, and from my perspective, their lack of knowledge about bitcoin is even more lacking than you seem to be implying that it is - and even people in bitcoin might not even have a lot of confidence in being able to describe the difference between bitcoin and shitcoins or to be able to understand how a bitcoin is mined or to contemplate ways to hold their own private keys and perhaps to be able to do it in more than one way including recognizing that there is a difference between bitcoin and lightning network - and perhaps they don't need to know all of those things in order to be able to hold bitcoin or to know what bitcoin is and how to hold it in any other way other than on an exchange and getting price exposure, if that might be what they are seeking.

We remain in very early days in terms of bitcoin adoption and the expansion of many of the network effects, including the 7 network effects described by in 2015 Trace Mayer.  We could go into each of the 7 network effects and elaborate on them, and so we have 8 more years of bitcoin's affects on the world to show the ways that those 7 network effects can be considered and elaborated upon.


I agree that anyone could be subjected to price pressures, and even uncomfortable feelings when BTC prices go down more than 50% and stay down for long periods of time, but it would be an error to speculate that all investors are impacted in similar kinds of ways - because there can be both a lot of value in time investing in a variety of asset classes and having wealth in a variety of ways that might cause a person to be less concerned about great losses in the quantities of BTC wealth when they have their wealth secured in other ways, too.

So sure there could be similarities of "kind" of disappointment, but still a great amount of differences can be felt when "everything that you own" is in an asset class, versus having back up sources of wealth and/or income that might cause for a considerable amount of cushion - even if the quantities of wealth loss might be measured in similar ways or if they are the same kinds of losses.

I think there is a little misconception here. Do you mean Bitcoin is not popular enough for people to be aware of it and choose it as an asset, or are people not popular enough for Bitcoin to notice them and allow them to embrace it? Either way, as far as I know, Bitcoin is already popular and exposed to the extent that every average person with access to the internet will be able to understand and make use of the currency. The only pressing challenge I see here is misinformation. In one way or another, lots of people have heard about Bitcoin, but most of them have the wrong idea about it, which makes them have the wrong perception about the currency.
 

I don't actually think it's just new comers to crypto that faces the challenges of panic selling, it happens to both old and new investors, it's just base on personal decision and being a strong decision maker and at the same time standing by their decision, every bearish market always have some kind of negative vibes it gives to hodlers, it's a time where people failed out of their decision because of the uncertain price movement, most times you never can predict what and where the market is going from their, all that is left with the holder is a calculation, either to use a stop-lose principle in other not to lose more, or either to hold and try using the disadvantage of those selling to their own advantage by buying more and adding it to their hodling. So panic selling is not just for new investors; it's also applicable to old and expired investors.

I think depend one people mindset about their assets investing in which kinds will give much profitable at the future, some people still doubt with Bitcoin as worth investing assets because they are not really popular and understand well how Bitcoin price progress years by years . Many of them panic about bad news only and never learned with Bitcoin recovery to higher price after facing with bad news and success reached to higher price.

Talking about panic moment seems happened with new comer in trading actually on cryptocurrencies, they trade not based on their own research but another recommended and looks hype only, when the other investing on shit coins they will try at shit coin without research yet and the same when investing in bitcoin at the wrong moment when Bitcoin have reached too higher price.

Learning to accept consequences is an effort to keep understanding important lessons from every aspect that we live. It is important to remember that everyone must have the ability to control worry and ask each of us where is the investment model that does not involve risk?

The simplicity of bitcoin is contained in a store of value and bitcoin has the power to defend itself under any circumstances, Covid-19 is a reference that the collapse of economic resources in various sectors does not affect bitcoin to reach its highest peak. The next question is what to worry about for bitcoin? although people talk nonsense about investment risk and I agree with your argument, that analysis and knowledge is a source of strength for people who worry too much.

Buy and Hold Bitcoin I will be a winner!!!

Why are you talking about being a millionaire as "the next step."

That's fucking nonsense, unless you are already almost a millionaire, you should not be fucking around suggesting that the next step is to be a millionaire since probably the next step for a lot of normies, including many forum members is to establish a somewhat realistic plan and to follow through with it..

You come off as a disingenuine dweeb who is promoting gambling.. and/or get rich quick mentality and suggestions by trying to assert unrealistic bullshit in regards to "the next step" is to become a millionaire.


This part of your post seems mostly correct.. but you still come off as a kind of bot.


Ongoing attempts at applying the skills and learning too - rather than merely talking about it.


It is probably true that a lot of wealthy folks have help with their financial management or they have decent chances of following "tried and true" methods that are traditionally accepted by financial consultants (advisors), so even though it is likely that anyone can learn how to manage their own finances, there are some potential scary traps, including some potential for time-sucks that a "professional" person might not have, if they might be busy applying their trade and making money by carrying out their normal job duties.


For sure, it is difficult to argue with what you are saying salad daging, even though for sure it can take some people a real long time to build up their investment portfolio - even 20 years or more.. .. even though so far in bitcoin's history, we have seen where it has become possible to potentially short-cut some of the timeline in which it might take to get to "millionaire" or even to some form of entry-level fuck you status.. and we likely have access to information in which people have worked their asses off and have scrimpt, saved and invested their money for 30-40 years and still have troubles in terms of getting into entry-level fuck you status.. because it seems that there are quite a few examples in our debt-laden traditional systems that we see that the system itself seems to be designed in such way that it becomes difficult to stop generating income for people who have not sufficiently gotten into some kind of situation that they have been able to identify some asset classes that might not overly depreciate in value in the times of their lives that they might not be able to continue to generate cashflow through their labors... so for sure, bitcoin seems to be a kind of asset class that is more difficult to have rug pulled in the future.


Some aspects of our investment, we may need to learn as we go, including when it comes time to figure out cashing out strategies to be able to spend along the way, and we might  not be able to plan the specifics into the future, until we are able to verify if various aspects of our plan allows us to withdraw at a rate that is sufficiently comfortable for us.. and surely also whether we might feel as if it might work for us to put some of our bitcoin assets into other assets.. such as if we might be living in one location or if we might have some other kind of a life style in which we might want to (or be able to) live in more than one location  (through a calendar year or however, we might be attempting to measure where and how we might want to spend our time).

In addition, they also have a financial adviser so they can manage and practice management, we can do it as long as we are disciplined in advance to get started.

Yeah, we don't have to think about how to get rich, because we know that by continuing to accumulate bitcoin, you can become a millionaire, depending on how the person buys bitcoin regularly for a long time, for example, 5 or 10 years, the pile will be more and more and BTC will make us rich because its value continues to skyrocket for decades more.

We have to adjust our abilities, and how regularly we do DCA, the better it will be, but it would be nice for us to do it while learning to be able to manage both financially and the BTC invested.

Speaking of what people can do to be more successful in life, I think there are quite a lot of things to do apart from what you listed. But not forgetting the topic of this thread, buy the dip and hold, although it concerns everyone, both newbies and those that have not yet purchased any Bitcoin, at least it will give them insight and guidance into what the topic is really relating to, so I think not really deviating from the topic will help.

Decision, desire, determination, the right education or guidance, financial help or backup, choice, and patience can all determine one's success in their Bitcoin investment. The right guidance or education will make an investor take the right decision on their Bitcoin investment. There are people who panic a lot during the bear market; all they think is that their capital will crash and liquidate, but that can only happen to people who are involved in Bitcoin leaverage trading, which means that when they are trading with a high leaverage, if the market goes against their direction, their asset can get liquidated. But for normal Bitcoin investors who are just holding it in their wallet, they don't have to fear asset liquidations. If they make the decision to hold patiently and store their Bitcoin in their self-custodial wallet, they will definitely make a profit during the bull market. Actually, holding Bitcoin for the long term requires a lot of patience and the decision never to sell unless the market becomes so bullish that you are satisfied with the profit you are getting.



Not everyone can really control their emotions about investing and financial management.

Actually there are three simple things that can be applied by everyone if they want to realize themselves to be more successful in their life. These three things are, the first is the will or desire to be better and the second is always setting aside time to learn, either through education or through skills that we like. And the third is don't immediately believe in the new things you see before you do your own research on what you just saw.

An example here is Bitcoin where you believe and invest in Bitcoin based on your own knowledge and research on Bitcoin. Not based on what other people say, although what other people say can also be taken as an initial reference before conducting further research on our own. And as for controlling emotions, I think everyone can control them well as long as we don't panic about what other people are saying.

Yes, Especially in terms of emotional control in making financial decisions, this usually happens very dominantly, whether he is a rich or economically weak person. I think the key to success here is education, awareness, and a willingness to learn and continually improve financial knowledge and skills, regardless of one's level of wealth.