Quote from: AirtelBuzz on December 31, 2023, 06:01:45 AM

Quote from: JayJuanGee on December 30, 2023, 04:43:07 PM

Why would you limit it to 4 years? Even if you increase your investment to $50 per month that would be right around $600 per year and $2,400 in 4 years. It does not seem to be a place to be stopping. And let's say you extent that to 20 years, and then you have right around $12k invested, so now you might start to be getting somewhere in the event that your disposable income does not go up.. but there can be ongoing adding of value and then at some point it might start to become more clear if you should be changing your strategy or at what point you might be getting to be out of accumulation phase and into either maintenance stage or liquidation stage.. and surely from my own thinking it does not seem clear to transition from accumulation stage to liquidation stage without first going through a period of maintenance stage... but hey, each of us have our ways of thinking about these kinds of bitcoin investment related matters.

Actually I earn about 180 dollars per month doing masonry work. I put aside a day's worth of my paycheck at the end of this work week to invest in Bitcoin and my wife puts about $25 of my monthly income into insurance. We have done this insurance for about 10 years.Where we have to deposit 25 dollars amount money every month.

JayJuanGee After reading the post you quoted me I explained to my wife that if we invest the money in the insurance we are collecting into bitcoins our bitcoins will increase. We will even get more money if we invest in bitcoins than if we put money in insurance.

My wife is literate which didn't take me long to convince her but she already had a little idea about cryptocurrencies and even Bitcoin. But he didn't understand well about bitcoin investment after I explained him well he asked me to invest that amount in bitcoin instead of saving the money in insurance. We have decided to start our new bitcoin investment journey from next month i.e. January and invest $45 per month in bitcoins and its duration will be ten years. In future we have decided to increase the amount of investment but we will try to increase it according to the cost of our family.

Of course there are no guarantees, but it seems that with the level of your current income, your expected income (perhaps questioning if you are going to be able to increase your income), and your timeline, you are hoping that your BTC investment will end up outperforming other possible places that you could put the money, including the insurance plan.

And, yeah, as Odohu mentioned, insurance is like an emergency fund, and you may well not be in a good position to self-insure, if that were to happen to make up for the amount that you contribute versus any kind of need to use the insurance for an unforseen event.

Of course, many of us who are active in this thread and who have some convictions about bitcoin believe that we should try to be as aggressive as we are able to be in regards to our bitcoin investment, but not so aggressive that we end up not being able to cover our monthly expenses and/or to have an emergency fund (whether your insurance fits into what should be your emergency fund might well be the case so your not investing into insurance may well end on the side of being overly aggressive and even reckless) so that we do not have to sell any BTC during our investment period.. and so after 10 years of investing you can reassess, but you also may be able to reassess if any of your conditions significantly/materially change within the 9 investment factors that I describe in another one of my posts.

Quote from: MusaPk on December 31, 2023, 06:39:59 PM

Quote from: JayJuanGee on December 28, 2023, 11:51:31 PM

It is pretty doubtful that investing into bitcoin as aggressively as possible, even with investing a million dollars right now is going to get you close to the same levels of bitcoin that the ones who are better off than hypothetical 1 and 2 are facing.. so right now a million dollars is going to get you right around 23.5 BTC... so it could be a bit of a challenge to catch up to any of those in hypothetical 1 and 2 and even though there are abilities to get close to those in hypotheticals 3 through 5,.. but with way more upfront capital invested..

But even someone investing $100k right now into bitcoin will have had to struggle a lot more than the person in hypothetical 6, since the one in hypothetical 6 ONLY had to put $26k into his bitcoin investment over the past 5 years, and maybe the person in hypothetical 6 might not have had been in a position to invest more aggressively than the $100 per week that he was able to invest over the past 5 years.... so such a person would never be able to come up with $100k to invest into bitcoin even though his current BTC stash is getting to those levels of valuation...and he continues to buy $100 per week and to consider ways to increase his investment amount by increasing his income and/or reducing his expenses.

That's a valid argument that aggressively investment (putting huge money as Lump Sum) might not be a good idea. Rather the best option is to invest in continuous manner no matter how much money you have.

I surely am not arguing against lump sum investing, and it works pretty damned well when you can do it and if the price does not end up moving against you (meaning down), but if you do lump sum invest and the price moves against you, it is good to be able to continue to be able to buy on the dips, whether that is DCA or just amounts that you have held back to be able to buy if the BTC price were to buy against you when you lump sum bought.

A lot of people use lump sum methods and it can be very effective, when you are able to do it.. but sometimes you are not really able to do it without incurring costs and/or risks that might not be worth enduring.. so the extent to which anyone employs lump sum investing is going to partly depend on his having the money and what are the costs of that capital (if any) but the other part would be about ability to service the debt if the BTC price moved against him, such as cashflow or other places to draw capital, if needed and warranted... and part of the reason that the wealthy might be able to set themselves up to be successful no matter what is because they can employ even risky bets and lump sum investing, but also to have ways to service the debt or to keep buying BTC, even if the price goes down and poor people might not have those options when they employ lump sum, so the poor people end up gambling when they employ the same techniques as the rich person, even if they might believe they are doing the same thing, when they are not... but it still does not mean that lump sum is worse, even though some people should not apply it. I made a similar comment in a recent post that I made.. which suggests that if a person lump sum invest, he should have funds ready to deploy if the BTC price moves against him, down rather than up.

Quote from: MusaPk on December 31, 2023, 06:39:59 PM

As you said investing million dollar as Lump sum right now will give you around 23 bitcoin and that is still far from person in Hypo-3. In hypo-3, we are investing 60$ into Bitcoin every week for ten years and now the total bitcoins are 27 and there net worth is 1 million USD.
What we can deduce is that even if you dont have million or 100k dollars funds then you can still take better osition provided you are willing to invest small amount in periodic manner (DCA).

And a Happy New Year to everyone on this thread.

Of course, there is no guarantee that DCA will outperform lump sum, but a person who has spent a lot of time investing into bitcoin has historically had pretty good results and the longer he has been investing (even relatively small amounts), it will take a whole hell of a lot of capital to catch up to him, and many of his peers will not be able to catch up to him, so the ONLY ones who are able to catch up to him are the ones who, in the past, were not his peers but maybe way richer than he was, but he has likely caught up to a lot of folks who were way better off than him historically. We have witnessed these kinds of matters a lot in bitcoin, even though they are not necessarily guaranteed to continue to occur, even though bitcoin's investment thesis seems to be stronger these days than it was 7-10 years ago - especially if we go back before the resolution of the 2017 blocksize wars, and so even though the upside does not seem to be as great, but the investment thesis does seem to be be pretty strong these days.. including that lump summing prior to the launch of the ETFs may well be better than DCA'ing (front running a lot of the folks who are disinclined to directly own BTC - and sure there are a lot of folks who also don't directly own BTC, since they hold their coins on exchanges).. but no one really knows for sure..