Quote from: JayJuanGee on Today at 01:43:38 PM

Quote from: Ruttoshi on Today at 10:48:10 AM

Quote from: Roseline492 on November 22, 2023, 10:14:10 PM

however you are correct because as an investor or a business man is never an ideal to have only one single investment because if anything should happen to it, you will be hit back starting from square one.

It is when you have reached close to your bitcoin target, that if you want to invest in other investment like bond, stock, gold or real estate that you can now start that, not at the early stage of your bitcoin journey, if not you might end up not achieving your bitcoin goal.

It seems that you have phrased this part of your response a bit too stringently Ruttoshi, and maybe an example might be necessary?

So we are talking about someone who comes to bitcoin and to investing and they do not have any investment portfolio, and so let's say for example, they are also in their early to mid 20s and they are new to working and they have a whole lifetime ahead of them for investing (perhaps thinking 30-40 years, but hoping that if they invest well they might be able to reach fuck you status in way less of the time, and maybe even half of the time), so maybe they started investing into bitcoin around a year ago with between $50 and $150 per week into bitcoin, and every quarter they are going to reassess to look at their income and their expenses to see if they can be more aggressive in how much they invest, and so they expect that over the years from time to time, their amount invested into bitcoin will increase and so they are not exactly clear about how to apportion their target amount of BTC as compared with everything else - especially since in the very beginning all that they have is bitcoin and cash (and their cash is sub-divided into extra for monthly cashflow and emergency fund), so their first year in bitcoin, they had been multi-taskedly shoring up each of the categories, figuring out their finances and psychology, consistently buying bitcoin, consistently adding money to their cash reserves and also maybe considering that once they get their cash reserves shored up they will be able to even be more aggressive, but they are still a bit nervous about keeping too much in cash because there are expectations that in the shorter term bitcoin may well go up in the next year or two and may well not return back down to even close to these current levels.

Tentatively they are thinking that they may well start to diversify into stocks, bonds, property and commodities at some point around the time that their BTC holdings might end up being 50% to 150% of their annual income, sure it could take 2-10 years for these levels to be reached, so the beginning to diversify could end up coming earlier, and sometimes people will run into employment situations in which their employer offers some kind of a 401k investing plan that might even match employee contributions, which surely could cause distractions in terms of whether someone should invest into the employer plan and how much and whether that should take away from bitcoin investments, and it could even be the case that the employer plan might ONLY match the first 5% but a person could get tax free contributions up to a pretty high level of their income maybe even if they were to put 20% of their income into such plan it would be tax free, so it could be tempting to invest in such, even though maybe there is no justification to invest into such plan beyond the level of the employer match.. So if such person has 5% going into a retirement plan (that presumptively currently does not have any bitcoin-related options), then it might become quite tough to muster up another 5-10% to put into bitcoin.. which might be the $50-$150 per week or the desire to put more into bitcoin because they are distracted.. and perhaps rightfully so... because matching contributions are quite rational investments.

So if we consider that the person does not have any kind of other investing options, then concerns about when to start diversifying still are likely going to come up way before reaching full fuck you status (which might be 20-30 years worth of income), and if it comes after a few years, there still may not be any reason to exclusively do one or the other, and there could be reasons to split the income and continue to buy bitcoin while adding on some other investments, such as equities, properties, bonds and/or commodities... These are not easy balances, and they likely are not exclusive and they likely have transitional periods in which more than one investment might start to be made once a bitcoin balance starts to become a lot larger but still might be far from it's longer term target levels but large enough to trigger concerns about having too much invested into ONLY one asset... and surely not referring to investing into shitcoins unless the investment amount is less tha 10% of your bitcoin stash.. and personally my shitcoins are way less than 1% of my bitcoin stash... so I am more averse to shitcoins than a lot of other people, even though I can see how some folks might get tempted into shitcoins and could allow for a fairly generous amount to go to shitcoins, but they need to control themselves because they probably should not be investing at all into shitcoins, but if they at least set limits, then they will at least limit the damage and hopefully they are not spending a whole lot of time thinking about their shitcoins either. especially if the shitcoins are a smaller amount, it should logically justify hardly spending any time thinking about them, either.

Quote from: Roseline492 on Today at 01:04:28 PM

It seems you guys fail to understand my point of view, if I may ask have I mention any altcoins as an alternative for investment diversification? Irrespective of our purpose on this thread which is buying and holding, is it not also advisable to have other sources of income like business that could be helping or sustaining you and your family while your Bitcoin investment keeps running?, so perhaps it seems most people doesn't really understand the word Source of income ,so we shouldn't always feel or have a perception that other source of income means investing on altcoins.

However one of the factors of forces that hamper most investors are poor planning and lack of ability to have other things that could be taking care of his needs while he keeps investing.

We had already talked about the sources of income matter in terms of not always being practical, and you are likely not saying anything wrong when there could be benefits from having various extra sources of income, yet at the same time, you are not saying anything that is absolutely necessary, because there are some people who make really good money with ONLY one source of income.. and sometimes it is just NOT practical and/or justifiable to be pursuing other sources of income when in an employment situation that is quite lucrative and pretty much covers everything. Sure they could lose that source of income, but if it is a relatively high source of income that more than covers all expenses (plus some), then there can be ways to save a lot of income in case that main (perhaps ONLY) income source dries up.

Let's say someone makes around $6k per month^**, but his expenses are ONLY $3k, so he has $3k left over.. He might not need any other sources of income, but he might need to shore up some money in case something happens with his job so that he has a savings and/or investing cushion. Of course, if the same person were to have his income get cut in half or maybe due to inflation, all of his expenses doubled, then that same person may well have to figure out some ways to cut expenses.

Part of my point is that there can be a lot of variations in regards to whether anyone needs to supplement their income or to have the other kinds of cashflows, and surely if anyone is not sure about how solid his/her cashflow is, or if there might be some ways that the current income is not covering all expenses and investment desires, then there might be ways to get other cashflows, even though some employment might not really allow having other jobs, and maybe there could even be time constraints to figure out how to muster up some other income and if someone is already earning $6k per month, it might not seem worth their time to be engaging in activities to supplement their income when that activity might ONLY end up adding $500 to $1k per month and it is too stressful to try to carry out.. even though surely, there could be situations in which it is good to have that back up income, depending partly on how costly it might be to actually get that extra income.

**By the way, don't get worked up about the seemingly high amounts that I am using for these examples, perhaps in a kind of western context, and you can reduce the amounts by 90% if that would help you to better relate to the amounts that I am using.

Diversification is a safety net when it comes to investment. At a certain point, there may be a need for an investor to delve into something that is certain to provide a faster return, perhaps in a short period of time. This could be an investment outside the cryptocurrency space. Some reasons for this include acquiring more money within this period so that they can aggressively buy Bitcoin and achieve their Bitcoin goals.

Definitely, on the process of growing your Bitcoin portfolio, there could be opportunities like a business or a higher-paying job that could come along, and all of this can help increase the amount you put into Bitcoin weekly. For instance, if you currently allocate $150 to Bitcoin every week and have the chance to start earning more than you currently do, you could increase your weekly allocation to $200 to aggressively buy more Bitcoin. Additionally, if you see a good business opportunity, you may temporarily pause your Bitcoin purchases to invest in the business. Once you start making gains from the business, you could aggressively buy Bitcoin using some of the profits from the business and your income. This way, you may now be buying Bitcoin using your income ($200) and from your business gains ($50) weekly, helping you reach the level of Bitcoin portfolio you desire.