Topic: There's no lottery ticket in Bitcoin, it's a savings account (Read 393 times)

I think we can still consider it as a lottery ticket if bitcoin were to really go from this price to a million dollars a pop, think of it like a lottery ticket that has the right numbers in the future. I don't think savings account is a good word for it though because these days, savings account is pretty much an obsolete way of storing your money with their really low interest, might as well gamble the money.

yes it's true there is no lottery in bitcoin. because this is a long term investment company, why many people want to invest in bitcoin, because the profits can be commensurate with what is invested.
so that's why people convince themselves like deviating money in a bank with very guaranteed security

Some literally did it including their house and land and it's all worth it because they've done it a few years ago and there's no regret from doing that. But in these times, it's hard to maintain that kind of positivity because most of the people are thinking about negative possibilities towards bitcoin's price movement.
Just invest what you afford to lose, that's the usual advise.

Currently I'm trying to put most money as possible in bitcoin to avoid fiat because I'm really fearful about the global economy situation after pandemic. Before it wasn't good already, but due to the pandemic the emission of paper money increased considerably and we are going to see its consequences on the next years. So better if you have your funds protected far away from the traditional economy currencies.
For this reason bitcoin became not only a saving account, but also my main account. If I could I would use only it as currency in a daily basis. Unfortunatelly it's not possible, being still necessary to make use of fiat for most purchases and payments.

Yes, it is not the right thing to buy crypto with all of your savings. It is the most risky action you would take, trust me. It is the best to invest an amount which you won't regret if you lose that money. It is really a good thing to accumulate little by little in time.

^ The most common advice that I have heard when I was a newbie back then. Dont pull all your eggs in one basket but yet, I am still loyal to BTC and keep holding on to it on my portfolio. In the first place about the BTC, this was created to alternate the fiat as an alternative of payment method, this was never expected that now we think that BTC is good to store in value. But people believe that the most profitable is investing in it and keep it in your wallet and patiently wait until there is your profit. So they forget the real use of BTC.

People should always mind off with the risk because majority of us do really forgot the risk of price volatility and the risk behind on investing even with Bitcoin.We should put up into our minds that there would be no guarantee in terms of future but somehow with the potential then there is some light or high chance but always pose up with the risk and be aware of it. Dont go all in or highly depending on it because you wouldnt know on what would happen next. Diversify while you can and not only limited with crypto but into other investment as well like stocks,real estates etc.

When you put money gradually into Bitcoin, you should remember that the price can change drastically, making it invisible that you've put some money into BTC last time or compensating if you don't put it in. It might not pay off, that's the problem. It's always a risk, and investing each month is a pretty significant commitment and requires a lot of trust in BTC. Also, people are often putting some money into savings, intending to use some of this money within a year or two, and with Bitcoin it might turn out that the money isn't there when the person needs it because the bear market can last for years.

"Don't put all your eggs in one basket and don't invest what you can't afford to lose" this is really applicable to newbies out there.

I know that most of us are greedy at first because we don't have enough knowledge and experience about bitcoin investment.

We need to keep in mind that bitcoin is not a luck-based investment, that you rely on the things that is happening in your surroundings.

I've been DCA my wage slave pleb money into bitcoin for 3 years. Still in the green. However Everyone here makes it seem like I'm making a mistakes.

That is called store of value,kinda like gold only here it is better because we are in full control.Also to keep gold in your house is risky and also to keep it in a safe in a bank is somewhat risky as a bank is still a third party for me.With Bitcoin you can keep it in your desktop wallet or hardware wallet and it poses no risks(unless you are not at all tech savvy).You cannot become rich overnight and this is proven now but also it is proven that with patience people who were early investors made a fortune in 2017.Bottom line is keep accumulating it as much as you can.

Investing in bitcoin needs patience because we can not always make a profit in the short term. I like the idea of investing in bitcoin each month, no matter the price and I already suggested that to some of my friends. But only a few of them follow my suggestion and the rest still underestimate and do not want to invest in bitcoin. We should prepare something for our children and grandchildren, and if they can live better than us, we make sure their future will be bright. We will have something to give to them as a present to manage it for their lives.

Yes, if anyone thinks that he will become rich right after investing in bitcoin and crypto, then he is totally wrong. Bitcoin is not a quick rick scheme. If anyone want to become rich over night, he can try luck in gambling. Bitcoin and crypto can give you good return but for that we need to show patience.

Many people end up mistaking bitcoin as a lottery ticket or an entrance to a wealthy life but if they would conduct research about it, they will learn that it does not happen over night. Patience and good strategy is one of the main requirements you need to meet so that you can benefit from your investments in bitcoin. If you are too lazy to consider finding out more about bitcoin, then do not expect too much from it considering that you don't even know how it works. You should always stay updated and knowledgeable so you can make your investments grow.

Agree and i think the point is just spend money you can afford to lose.

I personally keep investing every month, when i got my salary from my daily Job i always spend 70% to buy some alts or BTC.

As I read your post I understand where you gonna go with that tips. although it works for some other people, we need to understand that the money we need to put in weekly or monthly is just some small money that we can afford to lose and that depends on which country we are living in. nevertheless, when the price is low, that is one of the indications of doing those things will make you rich in the future when the price will gonna comeback and breaks another ATH again. that will take lots of patience since the market right now is not doing well. only strong perseverance will take you up to that long.

If you wait long enough and the pattern is going to be the same as stock which is always going higher than the previous all time high, I am pretty sure that you will see that your investment is going to make you rich if you have enough money and you waited long enough as @Sanugarid has said, it won't make you rick really quick unless you got really lucky in futures or something in the realm of unbelievable.

Investing in BTC won't make you rich quickly and there's no guarantee if the profit you'll earn on your BTC is worth it or not. So invest only what you can afford to lose because anytime the market might fall apart and no one knows when it will recover or if BTC will truly hits a new ATH. Don't be a fool and be wise in your investment.

Yeah, we shouldn't see Bitcoin as a lottery ticket. It is a currency in an exchange in the end. We are making investments into it and monitoring the movements. You can benefit from the opportunities when Bitcoin price dumps and buy more.

What you say is true, even if it sounds very painful for some Bitcoin holders. Therefore I never give advice to buy Bitcoin with all the savings
we have, even to the point of selling other assets that we have just to buy Bitcoin. That's not a bad thing, but not the best step to take.
I always advise people to buy Bitcoin with the extra money we have, so if it doesn't turn out as expected it won't be stressful.
We live must always be careful in making decisions and always provide a backup plan, so that we can survive if the main plan fails.

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