I have this colleague of mine at workplace who is a bitcoin enthusiast just like me. Often times at work when we're less occupied with our job we kind of spend such moment's discussing about bitcoin generally. Two days ago he was telling me about his plans to start buying BTC with 20% of his salary every month for the rest of the years he has to retirement that's when he will then take it all. And based on the company total years of service he has 16 years left to his retirement.
With the way he was talking to me about it he appears to know exactly what he's about to do and how its going to end for him. But for me his idea has left some apprehension and questioning in my head due to the length of years (good 16 years) he is going to keep up with. From my angle the years are too much as no one can certainly say for sure about what the future of cryptocurrency and bitcoin holds despite how positive it could be looking today.
In my opinion I wanted to talk to him with a logical conclusion why he should reduce the length of years, not to do it at a stretch of straight 16years he has in mind without applying risk management technique, maybe by splitting those 16years into four interjecting years. As in he should in every 4 years be taking 50% of whatever total amount plus profit till it gets to the 16years he planned. At least in worst case scenario this method could save him something reliable to fall back onto.
How do you guys think about this idea of mine for my colleague? Can it really be helpful to him in the long run or it may just obstruct his original plan killing the whole idea? Please all opinions are entertained but whatever your opinion might be, also try to put the length of years involved into consideration.(16 years)
I mean it wasn't actually a bad idea, for sure investing in Bitcoin for years is great and it might actually and could easily give you a huge amount of profit in the future. But what he just needs to do is just to observe the market and be updated on it, and at the same time learn how to sell and buy, its actually an advantage since he could just HODL for a long time because the money was just for his retirement so that means he could buy and sell when the price increase or drop at any moment.
He just needs to watch out on bear and bull run since if he's just going to HODL for 16 years that might not make any sense, I mean its possible that it's going to be a huge profit but it doesnt really guarantee retirement, The best way to do it is to watch the bear and bull run market, at least sell a small percentage or half of it on a bull run and rebuy again on the bear market. With that, you could easily guarantee the profit since you are taking profit every time the market price skyrocket.