Surely if someone is investing 100% of his discretionary income into bitcoin that might be on the border of too aggressive because he might not be adequately accounting either his income or expenses, so there would be no room for mistakes, unless, he were to invest that amount at the end of the pay period rather than at the beginning, meaning that if he were to only make his investment of all his extra money right before his next check had arrived, so then he would be at least eliminating the possibility for mistakes, so then his next period starts again after his check for the next pay period arrived.
There could be some folks who say that they are doing 100% but they really are not because they are keeping various kinds of cash cushions, but then they could still be accurate in claiming that once they calculate their various kinds of cash cushions are in place, then they will invest 100% of their remaining cash into bitcoin, whether that is weekly or some other period of time of spreading out the buys.
You are very right here! Investing 100% of discretionary income into Bitcoin is generally not advisable. This is because the investor is jeopardizing everything he earns thereby putting them on high risk since Bitcoin is a highly volatile asset. Another reason is because one should not put all his eggs in one basket, diversification, emergency fund, business and small savings is really important for an investor so that they wont get to tap into their investment. If a person invest all his discretionary income into Bitcoin he leaves no room for a safety net.
No matter the price action I feel that there will be more work opportunities in the future. It is good to use for something meaningful just like investing but not all of them into one thing. IMHO People should stop (especially beginners) converting their discretionary income into Bitcoin until they have achieved the necessary mental balance they need of multiples business, emergency funds and month budget expenses. These application does not imply to the rich because they have more than enough to invest and enough to remain.
Your reaction seems a bit strong to me Dailyscript. I don't really disagree with anything that you are saying, except that you seem to be arguing too strongly in regards to matters that are discretionary and even sometimes ways that matters are described in regards to how much money is set aside for various categories of expenses, and surely there are likely going to be balances, and newbies need to be careful in regards to how aggressive that they want to be,
yet if they have very organized finances that include being quite aware of their emergency funds, reserves and float, then their discretionary income is extra money that they have for whatever.. so maybe they get paid every two weeks, and if they already have money in their reserves that might be available for if they underestimate some of their expenses, or they might have some of that money that is available in case they want to go out for dinner or drinks or some other spontaneous expense, so they might already have various cushions set up, so then spending up to 100% of their remaining discretionary income on bitcoin may well be o.k... except for if they had not calculated very well in terms of the various cushions that they had already potentially set up.
I guess part of the point (and we don't really seem to disagree) is that the more organized you are and the more experienced you are with the balancing of your finances and psychology, then the more aggressive that you can afford to be in terms of your bitcoin accumulation, and sure some kinds of behaviors might border upon being overly aggressive, but at the same time, if we are trying to be realistic, there may be some ways that BTC buys are preset or they might be manually made, so that if paychecks are coming in each two weeks or some thing like that, then there can be ways to balance out if too much aggressiveness might have happened the previous pay period and yeah, there is a balance in regards to being either whimpy or aggressive, sometimes you might not realize that you had gone too far in one direction or another until later down the road and/or it is too late and maybe either you see that you BTC could have performed better if you had not been so whimpy or that you run out of money and you are forced to sell some bitcoin at a time that is not of your own choosing because you ended up investing into bitcoin too aggressively.
I seem to understand you on this matter, a person that already has a well built emergency funds or cash flow before going into bitcoin can easily be more aggressive in accummulating bitcoin than someone who still has to put those factors in place. Meaning that our level of aggressiveness should in some way be based on how much disposable income we can create by maybe having lesser thigns to spend on and then we can allocate more to bitcoin.
A person that is more organized finances( emergency funds, reserves and floats) in place has more of his income to himself and can easily decide to use them for and if that is to accumulate bitcoin then it's okay, but for someone with an unorganised finance that may still be trying to build his emergency funds should rather go with a low allocation to bitcoin or aggressiveness and focus on closing those spaces so he could have more of his discretionary income to himself then increasing his aggressive would be possible or okay.