smart investors will only make Bitcoin their main investment, and when they need money, they will use the Bitcoin they have as collateral in a lending platform, they are very smart because they realize that there are only 21 million Bitcoins and the amount cannot be increased or decreased.
No, no, no! Anyone using his bitcoin investment as a collateral is no worth regarding as smart because it makes no sense using your bitcoin to take loan on fiat. This is why we are advised to while planning on investing for a long time we also have a reliable income source if possible a stream's of income in order to avoid finding yourself in a messy situation where you would have to make such unwise decision because it's like telling an investor to stake his bitcoin for an altcoin.
How the discussion moved from buying bitcoin for long term holding to loan is what baffles me. The discussion have completely shifted to a new ground that is more or less a distraction. Why would someone doing DCA, for instance, consider taking a loan? The mere though of it simply means that the investor does not really have the cashflow needed to sustain a bitcoin investment for long term so investing in bitcoin may not be the best decision for him but to fix the cashflow. To succeed in bitcoin investment, there should be plans for emergency fund which will serves to keep the investment going when there is some development that requires money which was not seen or planned for in beginning. Without emergency funds, the investment is continuously exposed to risk. Taking a long is never in any of the process of healthy bitcoin investment.
The truth is any person that's taking loan to invest in Bitcoin shows that the person is not in for the long term. The person is basically in for the short term profit and is looking for every little opportunity to make little money by trading off the Bitcoin holding. Because the moment there is a little bullish tend and he see little profit, he/she will sell off the Bitcoin holding to repay the loan. Such people shouldn't be seen or considered as an investor.
Hahaha...so you are telling me that if I analysed the market and decided to outsmart it by investing in just a month (or even less) after carefully anticipating what would happen, I am not an investor? You are joking, I guess the ugly teachings here and other similar threads are now confusing many of you.
First, you should know that investment could be short, medium or long-term, it's part of the long-term investment plan that you HODL. Mind you, HODLing is optional, it's by choice and it doesn't make you any better investor. What makes you a better investor is what you earn from your investment and the consistency of the earnings.
While you are busy downgrading the person who invested his money and liquidated it in a short space of time and continues to repeat the process when the opportunity presents itself, they would have made multiples of what you who are HODLing make in a year. What I don't like is collecting loans to invest, we should invest only the amount we can afford to lose, not the one that will mount pressure on us.