Topic: There's no lottery ticket in Bitcoin, it's a savings account - page 2. (Read 392 times)

How can Bitcoin be a lottery? Although it is risky, the nature of the lottery is different!

Why do I feel that many people believe,that the Bitcoin price is guaranteed to hit 500K or 1M USD in the future?There is a chance for the BTC price to reach that amount,but this isn't guaranteed.
You you want to become truly rich,just build a successful company or get a high paying job,save more money and diversify your assets.
Investing all your savings in Bitcoin doesn't seem like a smart move,because the price might drop significantly and you might get trapped into the panic selling trap.
I'm not hating on Bitcoin.I'm just saying that proper risk management is always needed.

It is both for me. I accumulate bitcoin for the long term as a savings thinking that its value would be huge enough like a lottery ticket prize when I retire. Bitcoin's demand is continuously growing over the years but its supply is very limited and the amount mined every halving gets difficult so its value would definitely increase in the future. People like me think that by accumulating bitcoin even if it is just a hundred thousand satoshis, we can secure the future of our generation. If 1 bitcoin reaches a 6 digit price then they would live comfortably.

I don't think so. What is the difference if you put in a one-time big investment but your goal is for the long term?
Dollar-cost averaging (DCA) is good if your money is available only on by date basis.

Because there are some people who are being FOMO, like for example I bought Bitcoin this week and price of Bitcoin for the next already pumped, if price will not come back anymore, they missed the opportunity.

The big assumption behind investing in BTC is that it performs greatly on a scale of years, so there's only one good entry point - buy as early as possible. The exception to this rule is if we're in the middle of bull run or just entered a bear market, because the price could go lower in short term. But this just means that you should wait for the bottom.

Microstrategy is doing okay, but if they went all-in at $10k. they would have been better now. Why buy the dip at $50k and $40k if you could have bought at $10k?

Bitcoin has always been a relatively stable investment method. Using it to store funds is a very good choice. Although there are fluctuations, in the long run, it will tend to be stable.

Absolutely agree, people who try and make a one time big time investment are the ones that pull out when the market prices go awry, they expect a high return in the first few weeks after their investment but we all know that our expectation doesn't go our way. Also, this is the steroid version of savings account because you don't know how big the profits you will get when it's ripe for taking.

As in the opening post, it isn't too late. Try to invest/buy and hold bitcoin and other potential cryptocurrencies on a regular time interval. Maybe you won't be able to enjoy when you're in need, but it'll surely make a big change in your life.

People who have invested years back were now enjoy the profit out of it. What we invest now will pay off in the future. If you don't have patience, then you should be prepared to take risk. There are people who have got lucky to make themselves rich overnight through cryptocurrency investment. But that is very rare, so we need to live in the real world and make decisions.

This is the purpose of DCA at first place. DCA pupose is to avoid the impact of market volatility which we are experiencing right now. But this strategy can go wrong on Bitcoin if you enter on wrong timing, Bitcoin price is consistently changing price from 30K to 40K USD over a week so if your buying timing is always at top then you will suffer great loss in the long run especially if this bear market continuos just like what we experience last bear market.

If you want to save long term, Bitcoin pays off much higher. We have abundant available data to prove that, if it makes sense to somehow foresee the future by way of knowing the past.

If you are saving for your children and grandchildren, you don't even mind the daily news, of which many are fake. Not only do you not mind the news, you would not also mind the day to day price movements. You'd measure price appreciation in years.

You can also put a little every week or whenever you're comfortable with. But the goal is to keep on buying while you can and only invest with the money you can afford to lose.

I agree!

If you're hodling, than what's the big difference? You ignore the FUD and wait for years until you see big profit. With DCA it will take even longer to see big profits, because your purchase is split across many years. DCA is likely reducing your profits, but it doesn't significantly reduce your risks, because you're still holding a volatile and speculative asset. You can't really compare Bitcoin to saving accounts, because saving accounts guarantee profit. Bitcoin guarantees nothing.

There is a lot of misinformation in these replies about small monthly investments being risky, so let me debunk that real quick:

Imagine if you were saving money for your 401(k) retirement. Assuming you found an ETF that steadily appreciates in the long term, instead of going to the stock market and waiting for the best price point to dump all your investment in (and risk losing a large proportion of it in a downturn), you would put a little bit of money in periodically, since you know that the ETF will be higher long term i.e. by the time you retire.

And more importantly, this is money you can afford to lose because it should be a small amount from your paycheck. You get paychecks monthly, so you are basically redirecting money that otherwise would be spent on consumer stuff - and thus lost - towards investments.

Same logic with BTC. Bitcoin is a long-term appreciating asset. When you're investing a small amount monthly in it, short-term crashes don't matter much, because for most of the periods/months you invested money in, you already got a percentage profit of it.

If you're thinking about investing small money now at $33k, and you're afraid that bitcoin will tank lower than that, you should remember (again) that BTC returns long-term profit. 2013, 2017, and Q4 2020 prove that.

What you describe is dollar cost averaging, and that is always a good way to invest. 

However, Bitcoin is a speculative investment not ever going to be a saving account.

Savings accounts never crash 40% in a day. 

So don't treat BTC like a savings account, because that will hurt you when you need to withdraw the most.

I don't really agree with what you're doing, it's really good intentions for the future but if you do that without research first I think you're too rash. when buying either for long-term investment or trading of course we want to buy at the best price at least at the lowest possible price. and you do something rash by buying every month regardless of price. This risk is too big even though it's for the future

It's not a lottery ticket but the thing is that they are the same with the risk while the risk in bitcoin is a huge compared to lottery ticket because when you are buying a lottery ticket it is more cheaper than buying a bitcoin. Another thing is that the bitcoin is a investment account not a savings account though you can make it as an savings but the most profitable way to do is to make it as an investment in order for you to earn more than the usual thing.

How come it becomes a lottery, I didn't saw a logic there.

But I tend to agree with you, that's a good saving process.  It seems good if you invest 5% of your monthly income into Bitcoin no matter what the price is.  We know Bitcoin is very volatile and as I noticed, the best to buy Bitcoin is on weekends because the fees also dropped at that time.

You must first understand very well how Bitcoiin will work, the volatile nature should must you understand.  In that way, you might didn't turn into a panic seller when you will hear a FUD.

Should always pay attention to what you can afford to lose.

Bitcoin certainly isn't a lottery. It is not based on luck. You need to be knowledgeable enough before you decide to enter the cryptocurrency community. It is really risky to start something you know nothing about. You should first study before diving into investing or trading bitcoin.

I agree that you should not put all of your funds at once, especially knowing that bitcoin's nature is volatile. Its price may go high or low anytime of the day and it's the usual scenario. If all what you have is enough to sustain your daily needs, then I suggest you do not risk it. You should learn to limit yourself risking what you can only afford to lose. Put aside your funds that are alloted to your necessities, separate your savings, and separate the amount you want to invest and risk in bitcoin. Just always remember that you must not be easily shaken when things go haywire, otherwise, you'll lose. Learn to calculate things and risk according to your risk appetite.

It's not a lottery ticket if you have done your research.

If you buy Bitcoin because you follow the trend, it's like buying a lottery ticket. If you have informed yourself about what it is, what it can bring to the future of humanity and you buy for it, then you are investing.

About the DCA, many times it serves simply to psychologically withstand price swings. If you are able to withstand it, you can invest everything you have at once. Another thing is that you do not have enough and you are forced to invest little by little because your finances do not allow more.

Don't buy now with your money and put it all into it to get rich.

Put a little each month, no matter the price. You would want that for your children and grandchildren.

DCA is the solution for not being able to get swindled when China bans bitcoins again.

No matter how long it takes, it will pay off. You won't lose your home or have to move back into your parents' house