Post
Topic
Board Speculation
Merits 2 from 1 user
Re: Road to 100k?
by
JayJuanGee
on 28/05/2024, 20:14:08 UTC
⭐ Merited by bitmover (2)
[edited out]
So the best time for one to have such mindset that of buying back  is when they have already gotten themselves some good amount of Bitcoin stashed (having enough Bitcoin in their portfolio), like for instance a guy accumulation goal was for him to have 5 BTC , so after accumulating for some time he endup hitting that goal , so now he decide to continue with his holding though has done with the accumulating part . Then lateron he decided to start taken some profit from his holding, so while doing so he saw that his Bitcoin Stash us kinda reducing due to the withdrawing, so he may decide to buy some quantities using lump-summing or other convenience method, to purchase some quantities in order to coverup for those withdrawal he has made back then . It is not relevant that it must be same amount he withdrew, he might purchase quantities that's not up to the withdrawal or quantities that's more than that they have withdrew from Their holding .
It seems to me that in your example of having a goal of getting to 5 BTC, there might be some recognition of the ability to sell and/or to play around with the extra BTC if that same person had actually gotten to 6 BTC, so then the extra 1 BTC ends up being a overaccumulation cushion... that allows for more freedom.. so then maybe the 5 BTC becomes somewhat untouchable, yet the extra BT are able to have more flexibility in terms of whether some of them might be sold at various points.

Sure, 5 BTC might be enough too for a person who might be considering about 4 BTC is enough .. so 5 is more than enough..

And, so reassessments can be made at various points in regards to how much is enough and how to calculate how much of the stash might have more flexibility in terms of potentially setting various sell price points or even selling certain quantities on regular bases on on  timeline and with formulas that you might calculate yourself.  My sustainable withdrawal thread goes over timeline and also price-based sustainable withdrawal considerations.
Having more than enough Bitcoin is the dream of all investors, just like you said that an investor planned to accumulate 5btc but was able to accumulate 6btc, it means that he can do whatever he like with the extra 1btc and it will be fine if he sells in some of it whenever he wants. He can still use his 1btc to serve as his emergency funds so that he only sells when a real emergency comes, so that he will not be carried away of selling too much.

Getting to a point of over-accumulation does tend to result in a lot of options that were not otherwise available during the time that accumulation was still taking place, and a person likely gets from 5 BTC to 6 BTC after a decent amount of hard struggles.. and sure there sometimes could come reassessments that end up allowing conclusions that 5 BTC is enough - and then recognizing that he has 6 BTC..

In regards to your suggestion that the extra BTC could serve as an emergency fund is not completely off point, since whenever anything is extra there are options with it - yet still it does not tend to be good practices to have your emergency fund denominated in something other than your own local currency... which truly having BTC as part of your emergency fund could lead to selling some of them at price points that are not very convenient.

But yeah even having 6 BTC rather than 5 BTC could cause the HODLer to feel comfortable to begin some kind of a sustainable withdrawal strategy - especially since he has extra BTC.  Even with a 6% withdrawal rate, there could be 0.025 to 0.03 BTC withdrawn every month... and it would take quite a while (several years) to deplete the amount down to 5 BTC.