Quote from: Mr.sprin on Today at 03:59:16 AM

Quote from: laijsica on June 12, 2024, 05:12:04 PM

Your asset base should be much higher than your investments if you intend to accumulate bitcoins until you have a decent stash. You can be overly aggressive in accumulating bitcoins but realistically not at the expense of all your wealth. That's why pricing each asset level separately is to ensure maximum utilization during the period of its need. The portion of your wealth that can go into investing in Bitcoin is a fraction of your income and it may take a long time for you to reach a decent size by following the normal process but consistently running it.

Agree with what you just said, when we invest, what we have to think about is how we manage our finances so that we don't get too high, we invest as much as possible, that's fine, but we have to remember, our remaining savings must be more than that we invest, because no matter how much investment is not necessarily profitable in an instant, it will definitely take a long time and be a long process, don't let all the savings we have be invested, wherever we want to take our daily needs, in the end we will end up going into debt first, so We have to balance it with our savings, don't let it exceed the limits of our own capabilities.

You have the correct idea Mr.sprin - however, the longer you invest into something (whether bitcoin or anything else), then the more likely your investment is going to become way larger than the various kinds of savings (presumptively fiat for emergency fund, reserves and/or float), and so the main thing to consider about your various cash reserves is to maintain them to such a level that they are able to cover various aspects of your expenses, including your emergency expenses might be something that you will never have to dip into your emergency fund, but yeah the various kinds of reserves in cash should be in place so that you never have to dip into your bitcoin investment at a time that is not completely of your own choosing, including that if you are investing into something volatile like bitcoin and if you have a long term time horizon on your bitcoin investment, such as 4-10 years or longer, then you should be going into your bitcoin investment with extra money that you are not going to need for 4-10 years or longer and even with the consideration that it is possible that you will 100% lose your investment into bitcoin.

Surely no one wants to lose their investment, yet when we are investing into something as volatile as bitcoin, we should consider the actual existence of both upside and downside scenarios while at the same time figuring our allocation in accordance with various kinds of probability based calculations of the future.

I also see that @Marvelockg gave some decently good examples in regards to how cash management and/or investing remains dynamic in such a way that we figure out ways to attempt to follow some kind of plan but also potentially adapt our plan as we grow our various kinds of funds in terms of what might be in our various reserves as compared to our various investments, and presumptively if we are invested 10-20 years or longer, our investment porfolio might end up being 95% or more than the cash portions of our funds, even though there is going to be variations that our own experience will help to inform us how much we might want to keep in cash/cash equivalent versus various kinds of investments so there well end up being some folks who feel more comfortable to have higher portions of their overall investment portfolio in cash or cash equivalents, whether that is 10%, 25%, 50% or some other amount that is comfortable for them and tailored towards their various individual factors including considering their 9 individual factors.

Quote from: Bravut on Today at 02:26:05 PM

Quote from: Dump3er on Today at 01:53:53 PM

[edited out]

If you understand what "Real Life asset" means you would not be confused Mate. Real life asset are asset that exist in real world scenario and are tangible. Is Bitcoin tangible?
You are making a point out of nothing, Bitcoin changing lives as you said does not make it to be categorize as Real life asset. Art work, commodities, Real Estate are examples of Real life asset, I don't understand were you are coming from with your word "Controversial".

It never a misleading point, but a simple word for clarification as such distinction would keep members in a place of acquittance and would not be confused like you.

I do agree with the idea that in some circumstances, it can be good to distinguish between digital and physical assets, since they are different, even though there may be times when they overlap, especially if there sometimes might be attempts to monetize physical assets in digitalized ways, but there still remains various distinctions that are worth appreciating rather than convoluting the categories as Dump3er seems to accomplish...even if he otherwise made some interesting points, he also seems to have had confused some of the distinguishing matters that actually exist with the frameworks, too.

Quote from: Sim_card on Today at 04:35:36 PM

If you don't have an emergency funds to take care of emergencies that might arise, you will not survive in your bitcoin journey, because you will sell when you don't want to sell because of some unforseen challenges. Reserve funds are for backing up our emergency fund so that we only touch our emergency funds when a real emergency occurs.

Exactly!!! A mistake that a lot of newbie investors make is to end up using some or all of their bitcoin investment as an emergency fund, and so when some emergency comes they consider that they are just going to draw "a bit" from their bitcoin investment and take care of any kind of "real world" expenses matters that may come about, and so part of the short-sightedness of such an approach is that bitcoin tends to be all over the place in terms of value, so that when the emergency ends up coming, it may well end up being at the exact worst time to be selling bitcoin or maybe if it is not exactly the worst time to sell bitcoin, it is not a good time to be selling bitcoin, so in those cases, a person may well have had been better off buying bitcoin rather than selling, but if they are suffering from an emergency, it may well be possible that their own poor cashflow management had ended up contributing to their creating an emergency situation for themselves... so yeah, there can be a lot of value in having extra cash hanging around, even if that cash is "not working" in any kind of direct way, but in some kind of indirect way, that "non working" cash may end up allowing for staying invested in bitcoin in a fairly aggressive way, even during times in which bitcoin's price performance might not be doing very well, relatively speaking.. yet at the same time, it is either best to stay in the bitcoin investment or to buy more and at the same time, it is understandable that sometimes folks run out of money and they cannot buy more bitcoin, but at least if they do not end up having to spend their BTC during such negatively volatile times, then at least they are likely going to be in a stronger financial and psychological position as compared with someone who had not engaged in good cashflow management.