Quote from: Troytech on February 20, 2024, 09:53:36 PM

Quote from: JayJuanGee on February 20, 2024, 08:32:53 PM

Again, you must be talking down the road because I see no reason to focus on anything beyond bitcoin and cash in the beginning, and then once you build up your investment portfolio, then you might consider something like land and/or maybe equities.. but gold? bitcoin serves a similar purpose as gold but better, so I don't see any reason to get exposure to gold unless you already have it then maybe you figure out if you are going to keep it. But getting exposure to gold seems like a pretty BIGASS waste of time and not necessary, unless you happen to live in a situation or location that people are already accustom in trading in it.. but that seems less and less likely these days... but hey, whatever. Guys can do what they like in terms of those allocations and when (at what stage in their investment life) they might allocate in some of the assets that are neither bitcoin and cash.

I agree with you, its better to be strong in one asset (bitcoin), than to have so many weak investments. If I have build my bitcoin portfolio at least to maybe up to 5 years of accumulation I can now start think of diversifying but this might be too early in some case especially when i have not accumulated enough bitcoin, I always wanted to have at least 10 bitcoin before I considered any other investment, but you have also told me I should be prepared for a case where my investment doesn't give any return, and till now I've not actually understood the lesson you are trying to give me in respect to this, I'm building up myself in terms of cash too and I'm still consistent with buying bitcoin with DCA.

This post that I just made might help you with the idea. If you know how to use Excel, once you put in your formula you can copy and past the same layout, but just change your formula for other variables so you can see how the numbers work out.

Quote from: JayJuanGee on February 20, 2024, 11:37:04 PM

So maybe if we start out with a BTC price of $55k, and we anticipate that the BTC price will go up about 8% per year and the amount that we invest goes up 20% each year (meaning the first year is $10 week and then the next year is $12 per week and then the next year is $14.40 per week, then the next 10 years might look like this:

Date   BTC_Price   $ Invested   Total$Invested   BTC   TotalBTC   Total$Value
1/14/25   $59,999.40   $520.00   $520.00   0.00900009   0.00900009   $540.00
1/14/26   $64,799.35   $624.00   $1,144.00   0.01833352   0.02733361   $1,771.20
1/14/27   $69,983.30   $748.80   $1,892.80   0.02808670   0.05542031   $3,878.50
1/15/28   $75,581.96   $898.56   $2,791.36   0.03835201   0.09377231   $7,087.50
1/14/29   $81,628.52   $1,078.27   $3,869.63   0.04922868   0.14300099   $11,672.96
1/14/30   $88,158.80   $1,293.93   $5,163.56   0.06082384   0.20382483   $17,968.95
1/14/31   $95,211.51   $1,552.71   $6,716.27   0.07325363   0.27707845   $26,381.06
1/15/32   $102,828.43   $1,863.25   $8,579.52   0.08664438   0.36372284   $37,401.05
1/14/33   $111,054.70   $2,235.90   $10,815.43   0.10113401   0.46485684   $51,624.54
1/14/34   $119,939.08   $2,683.09   $13,498.51   0.11687340   0.58173025   $69,772.19

Now look, I will show you. If I keep everything the same, and the ONLY thing that I change is the BTC price appreciation from 8% to 2%, then my updated numbers will look like this.

Date   BTC_Price   $ Invested   Total$Invested   BTC   TotalBTC   Total$Value
1/14/25   $56,666.10   $520.00   $520.00   0.00926742   0.00926742   $525.15
1/14/26   $57,799.42   $624.00   $1,144.00   0.01998855   0.02925597   $1,690.98
1/14/27   $58,955.41   $748.80   $1,892.80   0.03242350   0.06167947   $3,636.34
1/15/28   $60,134.52   $898.56   $2,791.36   0.04687819   0.10855766   $6,528.06
1/14/29   $61,337.21   $1,078.27   $3,869.63   0.06371247   0.17227013   $10,566.57
1/14/30   $62,563.95   $1,293.93   $5,163.56   0.08334964   0.25561976   $15,992.58
1/14/31   $63,815.23   $1,552.71   $6,716.27   0.10628760   0.36190736   $23,095.20
1/15/32   $65,091.54   $1,863.25   $8,579.52   0.13311208   0.49501944   $32,221.58
1/14/33   $66,393.37   $2,235.90   $10,815.43   0.16451210   0.65953154   $43,788.52
1/14/34   $67,721.24   $2,683.09   $13,498.51   0.20129821   0.86082975   $58,296.45

In the second example, I have accumulated more BTC with my $13.5k invested, but they are worth less than they were in the first example because at the end of the second period the BTC price is only $68k rather than $120k, yet at the same time, you can see that my amount invested for the whole period is the same in each of the examples. Now if the BTC price goes shooting up after 10 years, I am going to be better off in the second example than the first, even though the second example might feel a lot more painful during the period of investment because it is not appreciating as much.

We could also have examples in which the BTC price goes shooting up a lot during these next 10 years, but I have not been able to accumulate very many BTC. How about I show you an example of the BTC price going up 20% per year for the next 10 years, but the amount that I invest remains the same? Look with my $13.5k invested, I have ONLY accumulated right around 0.3 BTC in 10 years, but they are worth nearly $102k:

Date   BTC_Price   $ Invested   Total$Invested   BTC   TotalBTC   Total$Value
1/14/25   $66,666.00   $520.00   $520.00   0.00850918   0.00850918   $567.27
1/14/26   $79,999.20   $624.00   $1,144.00   0.01560016   0.02410933   $1,928.73
1/14/27   $95,999.04   $748.80   $1,892.80   0.02150931   0.04561864   $4,379.35
1/15/28   $115,198.85   $898.56   $2,791.36   0.02643360   0.07205224   $8,300.33
1/14/29   $138,238.62   $1,078.27   $3,869.63   0.03053717   0.10258941   $14,181.82
1/14/30   $165,886.34   $1,293.93   $5,163.56   0.03395682   0.13654623   $22,651.15
1/14/31   $199,063.61   $1,552.71   $6,716.27   0.03680653   0.17335276   $34,508.23
1/15/32   $238,876.33   $1,863.25   $8,579.52   0.03918128   0.21253404   $50,769.35
1/14/33   $286,651.60   $2,235.90   $10,815.43   0.04116024   0.25369428   $72,721.87
1/14/34   $343,981.92   $2,683.09   $13,498.51   0.04280938   0.29650366   $101,991.90

Quote from: bitzizzix on February 20, 2024, 11:05:50 PM

Quote from: Troytech on February 20, 2024, 09:53:36 PM

[edited out]

Your goal is actually good, namely having just one asset, namely Bitcoin, which you will accumulate in the long term for 5 years. However, you should also think about other investments or businesses that you can use if you really need it or in an emergency and it would be even better if these other investments or businesses can help smooth or increase your Bitcoin accumulation.
So you should also think about this, because you don't know what will happen to you in the future, you will most likely use your Bitcoins to solve it if there is no other alternative. And my advice is very short and simple, but very useful.

There is no problem to figure out ways to increase your income and to decrease your expenses, but it is not necessarily true that you are going to be better off by investing your money in other ways, unless you have some actual specific talent or sure fire way that you are going to make money from the capital that you invest.

It is true that some people are not going to be able to make as much money by working for someone else, so they may well need to figure out some ways to increase their own income through the use of capital.. so these are not always easy choices, yet the answer is not obvious either because some people will have been much better off just sticking with their current line of employment or even supplementing various kinds of work that they do rather than getting distracted in to other investments that might not necessarily be better.. and we might be deviating a bit from this thread if we are arguing about the ways to increase income and/or to reduce expenses.. including sometimes there may be needs to go to college or to engage in some kind of professional training that might not pay in the short term but it would increase income greatly in the longer term.. a few or several years down the road.