For one to be able to hold for long, that person needs another means of income to enable him not to panic during the bear market.
Really? You think that's just what it is? How about the decision to do so? How about those less experienced people who are yet new to Bitcoin? They may have other sources of income, but because they have not really experienced how prices can be so volatile, they can sell out of pressure just for the fear of not totally losing their invested capital.
When one is not rich,he should take bitcoin investment as a side alternative work
Bitcoin is not just an investment for the rich; it is an open source for the common man and for anyone in society; it was not built for just some kind of person. Anyone who really understands how Bitcoin works can invest in it.
{In layman's explanation now (let me explain), anyone who eats three square meals a day, who is able to cater for all his primary needs, and still has something to save, can invest in Bitcoin.}
When you say Bitcoin investment should only be taken serious by rich people, I can also inform you that there are people who are spending lavishly every time because they are so rich, but they are not investing anything in Bitcoin. Some have heard about Bitcoin, but they don't have a full interest in it. That's why I say anyone who has a good understanding of Bitcoin can buy it and hold it for the long term or short term, depending on what they want.
Having other income sources is just one thing that can help you not really get affected phycologically if your investment is not making a profit, just like during the Bitcoin bear market.
I think that Sim_card makes a lot of decent points in terms of attempts at cash management and also that we should be attempting to make sure that we have our budgeting situation in order so that we are not getting ourselves into some kind of a situation that we cannot sufficiently tolerate, and you (Dr.Bitcoin_Strange) seem to be reading him a bit too narrowly....
Sometimes we might not be saying things very elegantly, but I don't see how Sim_card is making any points that are different that the ones that a lot of us are making in terms of emphasizing bitcoin and making sure that we don't overdo our investment(s) into it... so we can try to be careful not to get reckt if we are investing and we do not sufficiently have our financial and psychological matters together.
Actually there is nothing wrong with saving all of our assets in the form of bitcoin,
I don't know if you read correctly what Sir JJG said above and where he said that "we cannot be 100% sure that what we see as a reliable source of income can be reliable in every scenario."
So since you already said you don't believe in carrying all your eggs in one basket, diversifying your investment or source of income is a wise thing to do.
For sure, each of us has evolving situations, and we have to be able to monitor how aggressive that we are attempting to be in our bitcoin accumulation journey.. and even if we might get to a stage of our bitcoin journey that we believe that we have mostly accumulated enough BTC and we are merely trying to maintain some kind of a balance in our BTC portfolio as compared with other assets that we might hold.. and for sure, sources of cashflow are likely to change over time, and sometimes if we have accumulated a variety of assets, we can convert one of them into a means in which we draw cash from it on a regular basis.. which might even end up off-setting some other cashflows that we might have had that might be related to work and we might choose to work less or to change the kinds of work that we do in such ways that our regular cashflows might become less regular or even dry up.. and sometimes we might choose to do those things and other times, we might be forced into situations in which some of our cashflows have dried up (kind of outside of our control and we might be faced with decisions whether we want to reestablish some of that regular cashflow through work or to perhaps sometimes just decide to lessen the amount that we work or to change some of the kinds of work that we do).