I have read a lot of threads where people talk about investing an amount of Bitcoin they can afford to lose and sometimes I feel it's either they know what they want to say but don't know how best to express it or they don't understand the difference between investing what you can afford and investing what you can afford to lose. Let's get the difference;
1. Investing what you can afford: this means that you're buying an amount of Bitcoin or any other asset of your choice that fits your level of wealth. It could be that if you're earning 200k for instance, the amount of Bitcoin you can afford to buy at every pay period could be 50k while the remaining 150k can serve your other needs. It's not as though you're throwing the 50k away but that you're setting 50k out such that if you continue doing that for months you should have an investment somewhere either in Bitcoin or another asset of your choice
I have also pondered on this issue of investing what you can afford to loose in Bitcoin and I think that it should be like say said, we should invest what we can afford because Bitcoin is a store of value. What we can afford to loose means that we are not sure of the profitability of the asset that we want to buy, that is why we have to reduce the risk of losing or wasting our money so we will allocate an insignificant amount of money to it. Bitcoin should be allocated a reasonable amount from our income because it is a long term asset that will continue to give us returns on investment and the best way to accumulate it is by doing DCA method.
Investment in altcoins and any assets that we are not sure of it's profitability and those that we think can be scams should be done with amount that we can afford to loose. Using the amount that we can afford to loose means that we have it in our minds that we are gambling our funds so that if the business doesn't give us profit it will not bother us so much.