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On the other hand, a fixed monthly income is of course included in the initial planning to set aside our ability to invest, such as 10% or 5%, for us to invest in bitcoin. If everything can be managed as well as possible, of course the investment we make in Bitcoin will not interfere at all with our expenses or our daily needs.Even though I understand that you are saying that your bitcoin investment comes from your discretionary income, so it is extra income that you are putting into bitcoin with the hope to be able to both defer gratification and to hopefully improve your life at some future time.
Nonetheless, whether someone invests $10 per week, $100 per week, $1,000 per week or some other amount into bitcoin, the amount that is invested does have potentials to take away from current consumption, depending upon how aggressive the person is in light of his discretionary income.. if he is really wimpy and he is investing only 1-5% or his discretionary income then he is less likely to feel the effects of missing that income that he could have used for current consumption rather than potentially profiting later. And, of course, if he is investing somewhere close to 100% of his discretionary income, he might be sacrificing driving a nicer car or maybe living in a less luxurious house or maybe going out to eat less (or perhaps not at all), so there could be some current sacrifices and reductions in quality of life based on investing into bitcoin, even though the investment into bitcoin would not be taking away from the basic expenses, yet the investor still chooses what he considers to be basic expenses or not.
On the one hand, as their Bitcoin holdings increase, on the other hand, their wealth will also increase.
I agree with all of the points of your post, including this one, except you could have worded this part better, since you are suggesting that holding more bitcoin is going to guarantee increased wealth, which truly is not true. There is no guarantee, including that if someone does all the right things in bitcoin including investing into it as aggressively as he can, without over doing it, and he still might end up in a worse situation than if he had not invested into bitcoin... so surely it is better NOT to consider your bitcoin investment as if it were guaranteed, including communicating to others in a way that suggests that either you believe it is guaranteed or that it is guaranteed - since also you could lose your credibility when you communicate like that... even though many of us likely recognize and appreciate that it is better to invest into bitcoin rather than not investing into bitcoin, especially if we have figured out that we have discretionary income. The devil is also in the details in regards to either how much or how to go about such investing into bitcoin.If investors weren't aware at least with the basic knowledge then they will definitely face loss even they intend to investment in bitcoin. for example if a person invested in bitcoin at the 2021 at 69k then how will he make profit, he takes 4 years to recover even if he made the investment for the long-term. Here is memes for those-
here is one video also
https://twitter.com/naiivememe/status/1783890530952188267
That is a pretty dumb video.. but yeah sure funny at the same time.
There are people who could have had gotten into bitcoin at $69k and then just sat on their hands for the last 2.5 years, which surely that would have been a short-sighted approach, especially if we see that even someone who started investing right around $69k in 2021 would likely be in pretty good profits right now, and even if the person front loaded and bought a whole bitcoin for $69k, but if that same person bought an additional $69k worth of bitcoin since about October 1, 2021 until now (at $500 per week), then he would have had accumulated a total of around 3.2595 (1 + 2.2595) bitcoin and a total of $69* 2= $138k invested (currently valued right around $218k (so nearly 60% higher than the invested amount).. which truly would not be a bad place to be.
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The investor will not make profit if he only bought at that price once without buying again until Bitcoin price passes 70k, that is when he can start seeing profit. However, if that investor bought his first bitcoin at 69k and continue to buy regularly weekly or monthly using DCA for four years, even with the current bitcoin price of 66k+ as I am typing this post he would have made profit. This is because he was opportune to also buy bitcoin at the dip of 2022 October, so due to constant buying, his average bitcoin price will be lower and not at 69k anymore. This is the power of DCA, and that is why it is recommended mostly for beginners or those that are in their accumulation phase. Bitcoin investment is like every normal investment that in the early stage you need to sacrifice a lot to make sure that it stands. This is why I don't get it why people feel bitcoin investment is something they put their money into and expect profit immediately without building it over a long period of time.
Yep exactly.. as my attempt at an example (above). A person could have started buying BTC at the top and even lump sum invested at the top, and there quite a few different scenarios in which he would still be quite a bit in profits right now based on continuing to invest in BTC, even if he started with a relatively high lump sum investment at the top of the 2021 BTC prices.