Quote from: JayJuanGee on Today at 02:43:12 AM

Quote from: Mayor of ogba on May 31, 2024, 03:25:39 PM

Quote from: Tungbulu on May 31, 2024, 12:31:52 PM

[edited out]

As long as you keep trying to prove that diversifying our investment in gold or silver is good, I disagree with you. Yes, bitcoin is a long-term investment. Before we can make a good profit from our bitcoin investment, we have to hold it for a long time, such as 5 years. But you fail to understand that since we have accumulated the quantity of bitcoin we intend to accumulate, it is not good for us to diversify our investments into another long-term investment, which should take the same number of years as bitcoin to give us a return. We should diversify our investments in something different from bitcoin so that we can use the money from the investment to solve our living expenses, and it will make us not to depend on our investment to survive or sell it in a hurry to solve unexpected problems.

Maybe it could be a good idea to describe why a bitcoin accumulator might start feel more and more needs to diversify as his bitcoin investment grows.

Let's just start with the accumulator who does not have any other investments. So the only investments/savings that he has is bitcoin and cash (or cash equivalents).. so yeah, in the beginning that cash and cash equivalents are used to bolster his emergency fund, reserves and float, yet as his bitcoin stash size continues to grow, he might start to feel especially lopsided in terms of his bitcoin accumulation.

Let's take an example of a person who might be a bit more aggressive than usual, and he is aiming to invest/save into bitcoin around 15% of his annual salary/expenses. So it is still going to take such a person around 6.6 years just to reach 1 years worth of his salary invested into the accumulation of bitcoin. I am not sure that we need to describe exact numbers, but sometimes exact numbers can be helpful in order to provide more concrete examples... Yet if we consider that any kind of newer investor into bitcoin might spend 1-2 years getting used to the practice of investing into bitcoin and getting used to making sure that he has an emergency fund, reserves and float.

Once he has his cash management and his various reserves in a decent position of management, then he might start to consider that once he gets up to a year or two of bitcoin value in terms of value, then he might realize that all of his various cash reserves still might ONLY add up to around 6 months or so of his income, but he also might consider that he does not really need to keep more than 6 months of cash around, yet if his bitcoin investment is 50% or 75% or more of his total investment portfolio that at that time ONLY constitutes cash and bitcoin, then he starts to think that he has to figure out ways to earn o his cash rather than realizing that the cash is not really working for him.. so in that sense he may well justify diversify into some of other kinds of assets rather than keeping his value in ONLY bitcoin and cash.. so usually the other kinds of assets might be some what particularized to the guy and maybe he ONLY adds one thing at a time, which could be stocks, properties, bonds, commodities and cash equivalents (and I don't think shitcoins are necessary, but if someone cannot resist getting into shitcoins to keep that less than 10% of the size of his bitcoin holdings).

And as far as gold and silver, sure there could be some role for those in a guy's holdings, but there surely are no needs to emphasize them as being particular more important than other places that money could be put.. especially since bitcoin is largely serving similar roles as either of them, but int the ball park of at least 1,000x better than each of them, too.. so becomes a bit difficult to justify wasting too much efforts giving any kind of priority or special emphasis to either of those two.

Many members are suggesting that there is no need to diversify outside of bitcoin because bitcoin gives the greatest profits, and even though that may end up being true, I doubt that the mere idea of greater profits or greater profit potentiality is the reason that some of us might merely just keep our value in bitcoin can cash and ONLY start to diversify into other assets much later down the road.. And, instead of labelling it and calling it profits, perhaps it would be better to label and/or call it sound money and/or no real need to justify investing in inferior products... but yeah, that could just be a bit of a semantical argument in terms of the term "profits" sounding like a wrong way of describing why bitcoin is the best and/or most prestine of assets currently available to anyone and/or everyone.

I totally understand your point, When a person invests solely in bitcoin and cash they might start feeling a bit uneasy as their bitcoin holdings grow. It can feel like they are too heavily invested in one asset, especially if they are quite aggressive in their approach, like the example you mentioned about investing 15% of their annual salary in bitcoin. It could take quite a while, around 6.6 years, for them to accumulate an amount equivalent to one year's salary in bitcoin. That is a significant commitment. Sometimes it makes sense to diversify a bit as their bitcoin holdings increase to avoid being too one sided. Additionally for new investors in bitcoin, it's crucial for them to take time to build up their emergency fund, reserves, and financial cushion before going all in for bitcoin. Once a person has their cash management and reserves in good shape, they might start considering diversifying into other assets apart from just bitcoin and cash. Starting with adding things like stocks, properties, bonds, commodities, and cash equivalents one by one could be a wise move. Gold and silver could have a role in a person's holdings, but it's not necessary to prioritize them over other investment options, especially since bitcoin serves similar functions.

Some guys are saying there is no need to diversify beyond bitcoin because it offers the highest profits. But it's not just about profits, it's about sound money and not investing in inferior products. There might be a semantic argument about why bitcoin is considered the best asset currently available to everyone.