Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
FinePoine0
on 02/03/2024, 18:44:36 UTC
Let's take a longer term example.  Let's say that someone came into bitcoin in 2014 and spent a couple of years accumulating bitcoin, so maybe he accumulated around 50 BTC at around $500 each. So his total investment is $25k.  So when the BTC price shot up to $2,000, he could not resist, and he sold all of his BTC, and so he ended up selling them for $100k, and so he has around $75k in profits... that is pretty good, right?  He is still not doing as good as the longer term investor who still has the 50 BTC, and maybe the longer term investor has more BTC and his average cost per BTC is more than $500 per BTC.. we can imagine a lot of scenarios, and bitcoin has tended to be a good investment to hold onto for the long term, even if you might get enough BTC and you might want to shave off some profits along the way, you can still consider your investment as something that you mostly hold onto rather than converting into dollars and then ending up with dollars or some other inferior investment or maybe consumption good that you would be better off to have more BTC at a later price, even if your cost per BTC might end up being much higher.

I have seen many people who earn bitcoins and manage all their life expenses with it. I agree with you that investment in Bitcoin needs to be long-term. Because it is not possible to extract full profit from Bitcoin if not in long term. According to me, some part can be spent for special needs and the rest is better to invest.

According to your post type only those who sign this forum only invest in bitcoin?. 
You may be earning bitcoins weekly from this forum. But those who have other investors how will they invest?

The basic idea of the DCA method is to store bitcoins in small amounts over a long period of time. The more bitcoins an investor can purchase on a regular monthly or weekly basis, the longer his investment will last. Many people are hoarding bitcoins from a weekly source of income and will invest in bitcoins according to their income.