Tbh I don't really know what I am doing.
I bet that I have about 20 years on you, especially when it comes to investing. I certainly am no expert, and bitcoin brought a lot of new experiences to me; however, I started investing more than 30 years ago, and fuck all for the first 10-15 years, I felt as if I was just spinning my wheels in attempting to accumulate in such a slow damned way. But nothing like bitcoin was available (maybe that is a good thing? I don't know), but I certainly felt that it was taking for fucking ever for the quantity of my portfolio to grow to such a degree that I was starting to feel a bit comfortable with it and as if I had a kind of decent equity cushion.
So, I was already feeling kind of rich, or as if I had done well for myself about 4-5 years before I got into bitcoin, so bitcoin brought another level of empowerment, but also I was able to take from some of the wealth that I had already built and put it into bitcoin.
Surely, for a lot of the time that I was investing I was not exactly confident in what I was doing except to understand that dollar cost averaging and continuing to stock away value was going to pay off for me in the long run.
I think with bitcoin, you and a lot of other folks, are going to achieve a wealthy status a lot more quickly than I was able to, and part of the matter is having access to such a likely to be asymmetric asset... yeah, it might not pay off, but still, it seems to be something that is quite amazing as an opportunity to tailor a reasonable plan around and to have decent chances of profiting immensely.
I just canalize around %20 to %40 of my monthly income to btc.
It just feels right to me that way. %20-%40 monthly is probably what JJG calls "overinvesting" and to mic, I am probably underinvesting.
Last year in Feb I was about to go not all in but I was going to invest %100 of my monthly income and for a few months I actually did it. (now that was overinvesting)
hahahaha
thanks for sharing and for being so frank regarding the situation. There are probably a lot of guys (and even a gal or two) in similar shoes to you.
You are correct that I characterize your strategy as overinvesting both in terms of the 20% to 40%, and certainly the 100%, and I am thinking that Mic might be a bit confused, too, about what you are doing exactly. Of course, he understands that you have an ongoing pool of money that you dedicate to bitcoin, and he seems to be suggesting that you just invest that cashflow that you have already dedicated to bitcoin straight into bitcoin, and that way you are not either second guessing yourself and you are already "in" without having to think about it.
As soon as the money comes in, invest it into bitcoin right away, according to what seems to be what Mic is saying. Surely I do not agree with that, and the reality of the matter is that you should be keeping some fiat available, just in case, even if you have already allocated such money to BTC.
I recall that when I was in my BTC accumulation phase in 2014 and even kind of drug out into my maintenance stages in 2015 and 2016, if I ever came across some new cashflow that I had not expected, let's say I came across a $1,500 income that I was not anticipating. What I would do with that money is that I would divide it into three parts. $500 I would invest immediately into BTC, no matter what the price. $500 I would schedule for dollar cost averaging over a period of time, maybe 10 weeks or something like that (which would be $50 per week for 10 weeks), and the third part, I would dedicate to price dips. So if the price is currently $9,800, I would add that money to my buy orders in some kind of way. If I did not have any buy orders outstanding then maybe I would figure out what is the lowest reasonable place that the BTC price might go that would cause me to potentially use up the $500. If my answer was $8k then I might put several buy orders between here and $8k (that could be 5 buy orders of $100 each $350 or maybe I would put 10 orders of $50 each every $150 or some other variation that might depend on my feelings about how far the price might go down and if I felt adequately prepared for such a possible drop, psychologically and financially). If I already had buy orders outstanding (which was usually the case for me starting in late 2015), I would just weave the $500 into those already existing orders in a way that I considered to be comfortable.
The truth is I don't have many choices.
I don't like to buy stocks and I still wouldn't buy too many of them if they were cheap and luckily for me they are not, which makes my decision a lot easier. Especially in where I live, stocks are a big "NO NO" It is a much bigger casino than Primedice.
Gold? Own a few coins. Which is enough.
What's left? Real Estate? I am not big enough for that stuff and even If I were, I still wouldn't do it. Too much paperwork, to many shit to deal with. Being a landlord of somebody is not something I'd really want but I'll be one eventually if get to my target probably.
Crypto is just so easy. You buy, it goes up, you cash out, pay your taxes and you are free to go. Almost no paperwork, no rules when you trade. Markets are up 24/7 you can cash out any time. It is just great.
Certainly, I agree with you here. Bitcoin is way more liquid, and surely I would reconsider my thoughts on diversification if I had had access to such a flexible asset when I started investing.
For me, there was a period of time that I was able to funnel a decent portion of my income into a 401k that had matching employer funds, so that became a decently easy option for me for a period of time, but these days there are a whole hell of a lot of peeps who do not even have access to that kind of an investment option, and even so, bitcoin might still be more personally empowering than even that 401k investment vehicle, perhaps?
If you have a decent investment idea, you are free to tell me about it. I'll look into it.
My own initial investments on crypto more than doubled itself now. I am quite happy with the results but ofc it is not enough for my targeted "fuck you" status.
I am just trying to get to the double digits with btc. If I get to the "fuck you" price before that happens that's fine. If not I'll just be DCA'ing. DCA'ing feels so good. I became an addict. It is like you are doing some groceries for home every month (or week) but you get bitcoins instead. I feel comfortable that way.
Just be careful when you are stacking so many sats that you are able to feel that you have them sufficiently safeguarded.. at least a portion of them should be in a kind of cold storage.. maybe 80% or more, especially since you don't seem too inclined to trade any of them.
Oh look, I became a wordy man too.
You fuck.... Trying to steal my role in the WO thread scheme? Did it on purpose, didn't you?
