Topic: To be a Bitcoin capitalist, is better to secure wealth than DCA strategy? (Pt2) (Read 301 times)

Most people don't invest cash into anything based on what they told you or what you see, but they can be investing in other things without making it public, and you will think they are not making any investment. We are in a digital world where anything is possible.

You are also wrong here, saying it's not his money is as if he don't have any penny in that company when he is a share holder in that company, even if he holds less than $10 in share value, his money is still there, and mind you, he owns a higher level of share in microstrategy, and he is one of the decision-makers who don't have money; they can't hold such a position even if he is the founder of the company.

An investor is different someways to a capitalist even though they are similar in their objective and aims. The bitcoin investor will always want to assess the situation before DCAing. Normally an investor focuses much on the level of risk involved in any business he's anew to thereby evaluating the present situation with the future before even talk about profit, unlike the the investor, a core capitalist doesn't mind consequences in as much as he is standing a chance to making profit.

 He just jumps in and get out with whatever he can hold on to as quick as possible, but at the end the investor always get the bigger pay because of his patience and resilience trusting the process and when the profit comes it always comes in huge for him. Those that DCA in bitcoin are mostly less panicked in any situation in the market because at every situation there's either an opportunity for them to buy more if it's a dip and peradventure it's a rise they are open to the option of either taking profit or accumulating more.

The problem is that not everyone is an investor in normal society. For example, I'm in the UK, and most people don't invest cash into anything, never mind cryptocurrency. I am dumb enough to see if I can do it from $1000 a month into a wallet to beat estimates, but I will also manage that account because you need to manage it.

As someone stated, Saylor can happily buy whenever it's fine; it's not his money, but DCA is only easy if you understand the concept and understand you should also secure some gains.

I guess this argument can be rephrased as "Which is better: lump sum or DCA strategy?" Bitcoin capitalists have the financial resources to purchase the coin in large quantities at any given time. They can also afford to hire financial advisors who can forecast the optimal time to invest in Bitcoin. DCA is the most convenient strategy for small investors who want to minimize risk or buy within their means. Capitalists, on the other hand, can invest in lump sums because they are high-risk takers.

If I have the financial resources, becoming a Bitcoin capitalist will be my best option because it is potentially more profitable but also risky. Purchasing the deep with large funds will result in significant profits. However, DCA remains the best option for the time being.  

This.

Personally, I think there's no comparison there especially if the end goal for both parties is to be in the green (profits). So it doesn't matter whether you DCA or not because at the end of the day, the rich gets richer and faster more than a small time investor because they bet high every time they bid.

For instance — someone might be DCAing from sub 16k Bitcoin and a Capitalist will just whoop in at $60K and ride it to the recent local high of 66K and end up in profits in multiples.

The good thing here with bitcoin, regardless if you are capitalist or not, everyone is given chances to invest in bitcoin. However, if you are given a bitcoin capitalist, I don't think having this DCA approach is still relevant to you because you can always afford to buy a whole amount of bitcoin because you are wealthy enough to make it happen. Unlike for normal regular investor, DCA is the only way. Otherwise, acquiring bitcoin if it means buying the whole bitcoin will definitely turn into a struggle.

Capitalism is said to be a person who keeps on having a capital to invest. Maybe they can secure their wealth for a while but they will still use it again later on for investing. So both that you said there on your title seems acceptable.

Now on your subject, if you really don't want to call it an argument then you shouldn't say that word at the first place, or on your first sentence but I see that you also mentioned it in your second to the last sentence but anyways, I think there is nothing wrong even if you call it an argument. We are on an open forum, so everything here can really be an argument. Each investment strategy has their advantages and disadvantages.

We need to read them first, so that we will be aware if which are going to fit for us. As of now, DCA is so popular in Bitcoin investing. I think that means, it can be applicable to most of the people. DCA looks like it was quicker but there is still a patience on it because usually the amounts involved on it are only small. The other might require more patience, in a way that we will just set aside our money in the corner and resist any temptations that can come through. Those who can do it are strong, so I respect them.

I don't even like to compare both because at the end of the day, it is only one who can afford to become a bitcoin capitalist that will trade that path. Majority of the people will naturally go for the DCA approach. DCA approach might be a bit less rewarding to the other but is also less risky in terms of losing funds to a failed investment. For many and many others we will always choose to DCA because it allows us to make some profits with less of high blood pressure. Smiles.

We have 3 types of bitcoin investors

• Those who have the money and are willing to risk it by investing heavily
• Those who have the money but are not willing to risk alot
• Those who have very little but willing to take the risk

I see anyone who believes in bitcoin and uses it to generate profits as a bitcoin capitalist. Lots of bitcoin investors whether rich or poor are actually bitcoin Capitalists because they believe so much in bitcoin and are willing to enjoy the economic benefits of bitcoin by investing. Not all those who choose to invest using the DCA method are scared of taking risks, they believe in Bitcoin too that is why they choose to invest from the little they have.

Note that, anyone who believes in bitcoin is at liberty to use it in such a way that he derives maximum profit from it. He might be mining bitcoins, trading or just hodling. Which ever method he chooses to invest and get profits from it,  is his own choice.

Bitcoin capitalism is not for everyone because of its high risk, high reward-strategy and it also requires extensive market knowledge and constant monitoring. As an average investor, DCA is more accessible for me. This is the ideal for those like me with less capital. It also provides a balanced, long-term entry into Bitcoin without the stress of timing the market.

You'd almost always want to be have extra money you can invest before you even start wanting to do DCA. Otherwise, you're just inevitably going to force yourself into a bad spot at some point if you can't actually afford it. In the first place, I don't think there's even such a thing as Bitcoin "capitalist"? At least there's no instance where you'd use the two of them together.

There's only in general (afaik) DCA'ing Bitcoin or trading them. The safest option (or at least the most stable) would naturally be to DCA, which a lot more people prefer compared to risking it every day in trading. If ever I'd consider capitalist style as just trading in general and not DCA.

Why does it matter? At the end they both ended up with profits, didn’t they? I don’t see obvious reasons why one is better than the other. I say whatever works for you then do that. Be responsible and smart enough to do something great about your money to ensure that you will not be wasting said hard earned money.

I don’t police people on what kind of strategy they use to earn from bitcoin as long as they know what they are doing. It’s kind of like comparing trading to holding. Whatever suits your preference, goals, and capabilities then that is the best one for you.

DCA is for when you have extra income every week/month/year that you want to invest into Bitcoin.
Either way, Bitcoin that you bought, should be hodled. Otherwise you are not really a Bitcoin capitalist.
And in the worst case that leads to profit losses.

That is my view on things.

Every Bitcoin holder wouldn't mind to be in the whales category but the reality is that they can't afford to be, so they'll have to find a strategy that suits their earnings. The reason why I love Bitcoin investment is that it's not an asset that is reserved exclusively for the rich to hodl, there's really no excuse for an income not to hodl Bitcoin too. This is why the DCA method is a convenient strategy to accumulate Bitcoin on the long term, you don't need to be rich or "capitalist" to gain ROI in the future. Bitcoin is an all inclusive investment, if you can't afford to be a capitalist then do DCA method.

I am also on the same side! Also I am very much against these big corporations holding Bitcoins. That's why I was never excited while Bitcoin ETF was launched. Corporates have so much money that they can buy the majority of the Bitcoin supplies from the market and then manipulate it as per their own will. That should not happen with Bitcoin.

As a retail investor, I definitely do cost averaging. Capitalism is a very different ball game!

Investments in Bitcoin have both pros and cons depending on a person's ability to withstand the risk and the prevailing market conditions. DCA divides the time plan for investments thereby mitigating exposure to risks associated with purchasing Bitcoin at its apex. In the course of history, it has been proven that such a strategy lowers the highs and the lows which invariably means that wealth can be built in a more certain manner over the long term especially in the depreciation phases. It has been noted that even though this approach is very modest in terms of investment protection, its DCA investor strategy has won the DCA investor strategy on few occasions by a whopping percentage of 668% between 2018 and 2024.

On the other hand, lump-sum investing may give better results in very short bull market stages as price increases tremendously. For instance, in the period of 2018-2024 described above, the return of a lump-sum investment reached a phenomenal 1527%. The most important thing about investing for a long time using DCA is it is considered less risky and suitable to those who are committed to investing all the time, It encourages an investor to buy and sell at the right time to take advantage of the gains but increases vulnerability to short term market drops on the other hand.

https://alphasquared.io/bitcoin-lump-sum-vs-dca/

We all have different financial strengths and burdens and that is why we choose what we want to do with Bitcoin based on our finance. Within ourselves, we would want to be a Bitcoin capitalist but don't have enough finance to be one. There is no other option for them than to find an alternative to buy Bitcoin gradually or go into other investments they know. DCA strategy has been discussed countless times in this thread, and it is confusing to be the best strategy when there are other strategies that one can still adapt to be successful. The only thing is than using DCA you are reducing risk in your investment, and it gives you time to gradually reach your desired amount of Bitcoin in your portfolio.

Note: An investor can be a Bitcoin capitalist and still DCA along the line after lump sum.

I quite do not understand the patience you are talking about a Bitcoin capitalist because this are people that uses their wealth to trade Bitcoin, they often buy during DIPs and sells when the price skyrockets so they are not patient like those who uses the DCA strategy to grow their investments in Bitcoin.
            I assume you  are referring to Bitcoin capitalists as those who trade Bitcoins for profits and those who uses the DCA to accumulate and HODL till they have acquired a huge portfolio? Well it depends on what an individual wants and the one they finds suitable for them because a Bitcoin capitalist can lose a huge amount of Bitcoins within a short period due to market volatility while a DCA strategy investor can grow their investments in Bitcoin as time goes on and even though a bitcoin capitalist can also make good profits why trading but it can't be compared with the profits and wealth of a consistent DCA HODLER even though it might take a lot of time.

How do you become a Bitcoin capitalist if you don't have the resources, because you must take into cognizance those people that don't have the resource to buy in lump sum, which is why the DCA method allows those people with little resource to accumulate bitcoin within a period of time.  We understand the fact that bitcoin is a capital intensive asset but it was not made only for the capitalist, it was made for everybody especially if you have the mindset of investment. So the DCA strategy is of comparative advantage for people within the middle class and the low income earners who want to create wealth.

capitalists like to find deals. (buy low sell high, repeat)
DCA. just buy and hold at any price

capitalists do research to know whats a good deal, when is a good deal
DCA just buy at any price, without thought or planning, just hand funds over as soon as they have free cash to hand

though on the long term bitcoin will grow in secure bottomline value due to deflation. capitalists can buy the dips and spikes of sudden movements to maximise opportunities inbetween each period, thus increasing acquired coin inbetween each cycle, thus profit more
DCA just buy at any price even if its at a high hoping to get the returns on the next cycle


..
if you imagine periodic steps of a secure bottomline value increasing slowly over time, for instance
                                   Q3-Q4 2024 $50k
                  Q1-Q2 2024 $25k
Q3-Q4 2023 $15k
and then the speculative price chart sits ontop of these stepping stone rises of value

when capitalists buy. they buy when the price is on a dip and close to the value stepping stones thus less speculative volatility gap between secure value and the price. thus they lock in more of the wealth into more coins at value.. thus when the price moves up they get more from it

where as DCA people can buy at a premium thus not protecting as much of their wealth from the volatile whims