Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
ginsan
on 11/11/2023, 21:49:18 UTC
⭐ Merited by salad daging (1)
You don't seem to be saying anything different than me in terms the unlikelihood that someone would buy a whole BTC at once, and even an aggressive DCA strategy in the ballpark of $100 per week is going to take 6 years just to invest up to $31k, so it may well not even be fast enough to get 1 BTC in 10 years at that $100 per week level of DCA...

But yeah there are some people who can be more aggressive than that.. but usually not regular folks.
Sometimes $100 a week is too heavy for the regular person and even more so if they live in a country that has lower wages compared to other countries.

You are not really making any point that I had not already made, including that frequently we are bouncing between ideas of $10 per week and $100 per week as mere guides for what normal people might be able to afford, and of course if you are ONLY making $300 to $500 per month, then you likely more on the $10 per week side of the scale rather than someone who might be making a couple thousand per month might be more able to afford $100 per week, but even if a person can afford whatever level that they choose to afford, they likely still need to make sure the rest of their cashflow is in place if they want to be somewhat aggressive in their savings/investment rate as compared to their budget, and yeah for someone making $300 to $500 per month, $10 per week might already be aggressive and might not even work if the person does not have a decently good handle on his/her cashflow including having an emergency fund.

The other point that I was making is that even if a person might be able to invest $100 per week  (the higher end of the "normal person" range), it could still take such person 10 years or more to get towards the accumulation of 1 whole bitcoin, depending on what the BTC price does from here on out and in the next 10 years - which bitcoin's price in the coming 10 years surely is a bit of an unknown, even though many of us expect BTC prices to continue to go up and even to go up faster than the rate of inflation, which is part of the rational behind sound money and bitcoin serving as a good investment relative to other possible assets that might be considered as possible competitors or at least alternative possible investments.
I understand the explanation you explained, especially for someone, of course they will invest at the level of their monthly income and balance each of their income so that they can invest for a long time. And also agree that some of them invest for their old age so that the duration of their investment can walk 30 years or 20 years from when they started. I once saw a thread on Twitter where he was a farmer who had known Bitcoin for a long time. Maybe in 2013 and he regularly bought with DCA to accumulate it until he became one of the people who was quite successful in the investment journey he made in Bitcoin. But sorry I forgot to save the link.

So the conclusion that might be accepted and that we can implement in our investment planning is of course investing with money that will not be used for other purposes. Perhaps many of them consider it cold money that they invest in the long term. Maybe in long-term investment planning it sometimes differs in terms of the percentage they do, whether it's 10% or 20% of their income each month. For that I agree with what has been described.