Quote from: Agbamoni on Today at 04:59:49 AM

Quote from: Salahmu on November 21, 2023, 08:26:03 PM

[edited out]

Thats good statement. The wedding can wait for more years and proper planning should be made toward it. It's hard to believe that people will jeopardize their plans for the future by selling off their Bitcoin for a one-day event. If we look at it again the persona here was clearly into Bitcoin for the short term. Because am certain that someone investing in Bitcoin for decades/long term should behave differently from someone investing with the intention to pay for a wedding event in a year or two from now. The fact that he has to sell his Bitcoin for a wedding means he had some improper planning. Someone is planning for a wedding should have gotten a wedding fund account, which means whenever he receives his income he can allocate some money into the account, in a more preferrable manner he could decide to reduce the percentage of money he allocates for Bitcoin and emergency fund and set saving goals based on the budget for his wedding.

The main idea is to invest the amount of money you know you can afford to lose, so you won't have to sell your Bitcoin. If a person ends up selling his/her Bitcoin because of a life invent even if sometimes life can be unfair, it indicates that they have invested more than they were comfortable risking.

I do keep having a dilemma about the wedding example, and there are likely ways to attempt to accomplish both short term and also long term, and maybe there was a time in which a guy might have had been investing in bitcoin, but also trying to figure out what to do with saving for a wedding.. and so there could be ways to dedicate part of the funds to each, rather than selling all of the bitcoin.. so some is long term and some is short term.. so there would be kind of like overinvesting in bitcoin, but at the same time, we likely realize that whenever we bet on short term BTC price moves, then we are trading and/or gambling rather than long term investing.. so then questions might revolve around how to apportion such matters and whether that kind of discussion is really related to topics in this thread. Sure the longer term portion of the investment would likely be carried out with the same kinds of ideas of this thread with setting targets and also considering the balancing of lump sum investing, DCA and buying on dip. .and also HODL whether in the periods of going up or going down and running out of money.

Surely one of the disadvantages of pulling money out of any longer term investment is losing out on the compounding effects.. but if some of the money had been put in on purpose as a kind of overinvestment, then maybe the portion related to the overinvestment could be pulled out.

Maybe if we try to go over an example that might show how someone might attempt to accomplish such overinvestment and front loading and then be able to pull out the overinvested portion.

For example, let's say that someone had been in bitcoin for the last 4 years, and they had been investing $100 per week, so then there current investment portfolio would be around $21k invested and around 1.13 BTC.. which is not really any kind of bad place to be, but if such person put some extra into BTC around 1 year ago and maybe ended up buying an extra 0.4 BTC for around $9k (so that would be an average price of a bit more than $22k per BTC for those 0.4BTC), then surely when that portion of the BTC went up to $37k, it could have had been cashed out for around $15k.. so about a $6k profit.... so that could possibly help to supplement a wedding or pay for most of the wedding with the principle plus the profits. and maybe there are some cases in which the $6k profits could pay for most if not all of the wedding costs without necessarily drawing from the long term BTC stash...

.and whether it is realistic or not might be another story, but there could be situations in which someone might have some kind of a separate wedding fund that they put into bitcoin (which may or may not be considered gambling based on how they do it.. because if the BTC price moves against them, would they still end up cashing out or would they let the situation ride and either get the wedding funds from another source or postpone the wedding?)... there are a variety of ways to deal with the whole situation without necessarily violating some of the notions that many of us have about BTC being mostly a long term investment rather than something that you fuck around with in the short term.. but at the same time, why should any of us either be so strict or haters upon people who might be playing the possibility of UP (and then be ready to cash out of UP if it ends up happening).. while at the same time attempting to have some contingency plans that might not necessarily involve selling any BTC if UP happens to not end up playing out?

Don't get me wrong. I am not suggesting that anyone should be lightly getting into overinvestment scenarios, but I also don't find them to be completely repulsive as long as you have adequately prepared for the price moving against you.. that does not involve selling the thing that you invested into in the first place (which is BTC in this case. and what we are talking about in this thread)...

so when (or if) the price does end up moving against you, you likely end up losing in several ways: 1) by not gaining from BTC price moving up, 2) the value of your whole bitcoin holdings (and likely networth) ended up going down 3) you have to scramble to get funds from other areas and perhaps depleting or severely restricting those funds.. but don't make the situation worse by having 4) selling your BTC, even though that may well be what you end up wanting to do.. and maybe you should have plans in place that you are actually buying more BTC when the price is moving against you. even though you are losing in those other various ways too... which might be another cost that you have to account for being able to buy more BTC if the price goes down even though you are otherwise getting poorer in several ways as the BTC price is going down and sometimes it ends up going down BIGGEDly and staying down for a long time, when you had been expecting it to go up.

Quote from: Mayor of ogba on Today at 08:14:51 AM

Quote from: Hatchy on Today at 06:12:10 AM

Quote from: Agbamoni on Today at 04:59:49 AM

The main idea is to invest the amount of money you know you can afford to lose, so you won't have to sell your Bitcoin. If a person ends up selling his/her Bitcoin because of a life invent even if sometimes life can be unfair, it indicates that they have invested more than they were comfortable risking.

I don't believe he invested more than he was comfortable risking. It's evident he wasn't aiming for long-term profit, and his lack of a well-thought-out investment strategy likely led to selling off his Bitcoins. For those looking to invest in Bitcoin, it's crucial to plan and diversify investments wisely, allocating an amount not needed in the short term. While it's understandable to sell some Bitcoins for emergencies, it's advisable to establish a separate savings fund for unforeseen circumstances during the investment period. Effectively dividing your income based on monthly expenses is essential.

Even due someone is investing in Bitcoin for the short term or the long term, it is advisable the person should have a source of income so that he/she will not rely on selling his Bitcoin holding to solve his life challenges. Fomo can also make someone to sell his Bitcoin holdings because he/she invested in Bitcoin to get some profit in an estimated time but when the profit doesn't come and the price of Bitcoin dips, that person might be forced to sell off his Bitcoin even at a loss.

This is the place where a person should attempt to have a contingency plan so that s/he does not have to sell his/her bitcoin. There are ways to play on UP but also don't play it so hard that you don't have a contingency plan, and even if you might end up losing or not profiting if UP does not end up happening, you are not necessarily damaged as badly as having to sell your BTC at a loss... It is not an easy balance, I admit, but it also likely shows that those people who are not able to develop and have in place sufficiently strong contingency plans, then they likely should not be investing as much as they are into bitcoin.. so each of us should ONLY be overinvesting if we are fairly certain that our contingency plan is going to play out and the contingency plan is not that we have to sell our bitcoin.

Quote from: Aanuoluwatofunmi on Today at 02:22:57 PM

Quote from: Mayor of ogba on Today at 08:14:51 AM

Even due someone is investing in Bitcoin for the short term or the long term, it is advisable the person should have a source of income so that he/she will not rely on selling his Bitcoin holding to solve his life challenges. Fomo can also make someone to sell his Bitcoin holdings because he/she invested in Bitcoin to get some profit in an estimated time but when the profit doesn't come and the price of Bitcoin dips, that person might be forced to sell off his Bitcoin even at a loss.

You're right, some Invested in bitcoin as their one and only last means for financial breakthrough and all minds are on it, what we should have done is to make sure that bitcoin Investment is not the only thing we do, we have to create time and efforts on other assets to complement each other because bitcoin may not be as this always on the bullish and we may needed to sell while the market is unfavourable at dip all because we are in need of money to carter for other things in demands.

If we are talking about beginner investors, then you are likely not correct Aanuoluwatofunmi. A beginner investor will likely start out with at least having some kind of a dollars (fiat) savings and so even if the ONLY investment that he has is bitcoin, he would likely be able to balance those initial times in regards to his dollars. So as time goes on there may be some justifications in diversification, but that could take several years to build up to a point in which diversification is even needed to be considered.. especially for a beginner.

I think that we should presume that we are talking about beginners, and then work our way up to the more complicated and sophisticated situations, and actually the more complicated and sophisticated situations are going to account for their other investments when they are deciding whether to get into bitcoin and then presuming they decide to get into bitcoin then they decide how much they want to get into bitcoin and what will end up being their allocation into bitcoin as compared with their other investments and then how are they going to get to their target levels, which even target levels could be a bit of a moving target even if the non-beginner is still in fairly early stages of building the total values of his/her investment portfolio, so if the goal might be to get to $2 million in 30 years, and s/he is 5 years into building an investment portfolio, but the investment portfolio is still around 20% less than 1 year's salary (which maybe we might consider to be around $50k per year).

But if we get back to the newbie, then such newbie might not be needing to consider diversification until s/he gets to 30% to 50% of his/her annual salary (or whatever other threshold in which s/he might believe that diversification might be some kind of a potential concern)

If the beginner is very aggressive and already investing 30% of his/her annual income per year, then that person might be in a better place to diversify as compared with the more typical investor who might be struggling to get to any place more than 10% per year, and even with 10% per year invested into bitcoin or anything else, it would take 10 years to get up to a full year's salary having had been invested into the asset(s).

Quote from: rachael9385 on Today at 03:30:58 PM

If one is able to reduce his or her expenses and constantly buy $50 or $100 worth of BTC every weekend for 3 years, that means the process of achieving a whole BTC during the halving season might be somehow sure.

That's a pretty BIG assumption rachael9385.. If you had invested $250 per week into bitcoin over the last three years, you would have invested close to $40k and you would have had gotten nearly 1.4 BTC.

I get the sense that such opportunities to reach a whole BTC in three years with $250 per week has likely passed, but you might be able to get to 1 whole BTC over 2 years if you invest $200 per week. If you are ONLY investing $100 per week into bitcoin, it may well take you 15-20 years and maybe you might never be able to reach a whole bitcoin at that rate of investment into BTC... not that you will need a whole BTC 20-40 years down the road in order to still potentially have a lot of advantages from BTC, even if a whole BTC might not be fuck you status in some places in the next 20-30 years (I am revising my fuck you status chart to be more conservative and it appears that a western level fuck you status for 1 BTC might not be reached until 2060.. which maybe I am being overly conservative).