That's why I don't trade and I don't check the price often. I don't see bitcoin pumps as me making money and bitcoin dumps as me losing money. At some point, when you have a lot of bitcoin and it's worth a lot of money in fiat terms, you stop watching the market. You no longer bother yourself with this little "oh I gained 10k now" and a month later "oh I'm down 2k today from that 10k profit".
Think of it like this:
You have all you want as an average person. A house, a family, a job, cars, bikes, computers, phones, all that normal shit. I'm not talking jets and lambos, but all the average stuff. You once got bitcoin for maybe 1k USD and it's now worth 1 million. It was worth 2 million a year ago, 500k 6 months ago, now it's a million, you no longer care. Your investment was 1k and it's never going back to 1k.
I know a lot of people with a lot of bitcoin and a similar mindset. We just want to have an alternative and we're fine with whatever is happening because when we spend bitcoin, it's because we're happy with the price.
Coming back to the point. You're bothered with the investment cost because to you it's 10k and you have 10k profit. If I had a million and reached a million in profit for the first time, I'd redeem my million in profit and satisfy my need to show the success "on paper" and then kept the other million in bitcoin for the next 5+ years. That's where I'm at right now. The investment cost was redeemed somewhere in 2017 and now there's no more "cost" to think about. It's all profit, whether bitcoin is at 10k or 100k.
Excellent point. I was thinking about this yesterday and you have made this point quite clearly if we want to both secure the initial capital and make the profits as the new investment capital to generate more profits. Whenever in the future we choose to sell, every cash-out is all profit. Thanks for sharing and this makes me more confident.
If you won't invest again, this beautiful success should be what you are proud of. However, 99% of us will choose to buy again and hope for the next success. However, now you buy at $40K and the price may drop to a new low below $20K later, and the profit you gained from last trading may be eaten up gradually by the market dump.
OP, I'm understanding your hypothetical scenario but what I'm not getting is what you're getting at with your question and with statements like the above.
You could ask an infinite number of "what if...?" questions regarding the market, and you'll get infinity+1 number of answers if you start a thread about them--nobody can tell you what the right thing to do in any trading circumstance, because the definition of "right" can vary from trader to trader based on any number of factors. It sounds like you don't have a lot of experience with markets and trading, am I right? Well, you're in for a fun ride, but it's one with a very harsh and unforgiving driving instructor, i.e., learning from mistakes. And you
will make them. If anybody says they've never screwed up a trade, they're lying.
Good luck.
I am not an experienced trader as you are and thanks for your reminder. Actually, I have decided to invest in Bitcoin as a long term holder. There should be less trouble if I avoid to check the price update every day.