Quote from: JayJuanGee on Today at 02:45:20 PM

Quote from: Gormicsta on February 11, 2024, 08:05:16 PM

Quote from: JayJuanGee on February 11, 2024, 03:18:05 AM

[edited out]

Yes, I agree that past performances do not guarantee future results but we can agree that Bitcoin is the most established Crypto asset with the highest capitalization thereby giving some sort of advantage because there's only one out of a million chances that Bitcoin is going to crash or that it's going to dip and fail to recover. Again, when we say past performances doesn't guarantee future results in Bitcoin, there could be exceptions when you're investing for the long-term, whether using the DCA or Lump Sum.

There cannot be any exception to the rule that past performance does not guarantee future results because the past is the past and it is guaranteed, and the future is not guaranteed.

The main thing that we can do in regards to the future is to assign probabilities, and the mere fact that we are able to assign high probabilities still does not make the future prediction guaranteed.

I will concede that in several ways bitcoin has a lot of high probabilities, depending on how the questions are framed - but there are so many ways that it is not like a rock (and is a rock even guaranteed to keep its form?).. there is electricity involved, networking, computer software, various natural and man made events.. .. and even given all of that, there is quite a bit of solidness within bitcoin as compared with other manmade (or man discovered) phenomena...

I will also not deny that there is a lot of exceptionalism in regards to bitcoin, including that there is no other asset or shitcoin that even comes close to rivaling it, but still that does not make it guaranteed, it only makes it relatively better than everything else.. and so we should be able to have confidence in allocating accordingly.. even while knowing that past results do not guarantee future performance.

Quote from: Gormicsta on February 11, 2024, 08:05:16 PM

Yes, when it comes to DCAing, consistency is crucial. You won't truly reaping the benefits of DCAing if you simply buy when the price is high and sell when it falls. Additionally, I believe it's important to keep in mind that DCAing is only a method that might help to lower risk and possibly improve profits over time and not a guarantee of profit because anything can happen in the world of bitcoin.

You even agree that bitcoin's future performance is not guaranteed.

I frequently like to suggest that we can rest assured with DCA only if we have a bit of a strong presumption that the overall trajectory of whatever asset that we are investing into (in this case bitcoin) has an upward price trajectory - and most likely to be up relative to the amount that we put into it at time that we are going to need to cash out some or all of the value that we put into it... so yeah, of course, we want to think in terms of real value rather than nominal value and we also might not exactly know our timeline, including that our timeline might end up being quite spread out 15-30 years down the road or some other ballpark ideas of a timeline in regards to when we might consider that we are planning to start cashing out of some or all of our BTC holdings... and even our planned timeline for cashing out could end up going out further or might end up getting cut short due to some emergency situation that we might get ourselves into.

Agreeably, In a way, no matter how much information we gather, the future is never really definite. However, as you said, we may utilize that information to assign probabilities and arrive at well-informed conclusions. Furthermore, it appears that Bitcoin has some special characteristics that make it stand out from other assets. As an illustration, consider its scarceness and its autonomy from centralized authority. However, as you pointed out, there are no assurances.

But when we think about it, how do we go about making decisions about the future if we are unable to predict it with complete certainty? Assigning probabilities to each of the many alternative possibilities is, in my opinion, one way to come up with a solution. For instance, there are a number of potential outcomes for Bitcoin: it might take over as the primary means of transaction, be overtaken by another cryptocurrency, get banned by governments, become archaic and replaced by something else entirely, etc. Additionally, we can give each of these scenarios a probability. We can therefore still make decisions based on the probability we assign to each possible result even though we can never know for sure what will happen.

So even if we can't be 100% certain, we can still make an informed decision about how much to invest in Bitcoin, how much risk to take, etc. so when I say there's an exception, what I simply mean is that, with the facts gathered from both present and past events, the probabilities assigned to Bitcoin acting differently from it's past performances. Considering those probabilities as certainty is the risk involved in Investment. Without the risks, there won't be any rewards.