Quote from: Salahmu on Today at 11:18:30 AM

Quote from: JayJuanGee on Today at 04:08:50 AM

Quote from: letteredhub on September 21, 2024, 08:12:20 PM

This piece literally sums up the whole idea of investing wisely which is by investing an amount of money you can afford to lose. Investing with a sense of moderation. We need not put all eggs in one basket and by way of this in figuring out our respective level of balance to avoid reckage is by diversifying our investment to other physical assets within our reach that we know can be profitable in the long run.

I am not suggesting that there is any need to diversify into other assets besides bitcoin and cash, especially for newbies who might be in relatively early stages of building their bitcoin investment. It can take 5-10 years or more just to build up a bitcoin investment size (at least the amount that you had invested into bitcoin) to be equal to 1 year of your expenses.

I think @letteredhub did not understand the point you were trying to make and besides our most important goal is to be able to have a lot of Bitcoin available on our portfolio so diversification should not come to play at that moment , so actually, improper planning of diversification can even lead to inability to achieve anything at the end.

What @letteredhub is missing is that it may likely take somebody or a beginner who just started investing on Bitcoin using DCA strategy possibly over 11years to have a good Bitcoin stash on there portfolio and sometimes they may not even have enough Bitcoin after that number of years based on the amount they use on weekly basis, so perhaps he cannot advise such person to leave accumulating Bitcoin and diversify into another investment because it doesn't sound nice, so actually if there should be a time of diversification it should be when the person have achieved his Bitcoin goal before they can talk about any other thing.

There can be various stages in a new investor's bitcoin investment in which he might need to reassess his approach and determine the extent to which he might want to diversify beyond bitcoin and cash, and surely if he comes to bitcoin already with some other investments, he might choose to keep some of the other investments or he might choose to reallocate some or all of those other investments into bitcoin. I would think that the more common path is to just stop or slow down investment in the other assets and to invest into bitcoin, yet there could be variations on how to handle such an already existing situation with other assets.

Yet even the person who just starts out with just cash and bitcoin, he could have various stages in which he wants to make sure that he is not overly balanced into bitcoin, so if he first builds up his emergency cash reserves to 3 months, then maybe he might also have around 3 months of expenses in his bitcoin investment too. .and then maybe he will continue to build up other forums of cash reserves and maybe he might build his bitcoin faster or maybe he might build his cash reserves faster or maybe he will try to build them up equally, and at a certain point, he is not going to feel so great to be building up so much cash, so maybe he will start to prioritize building up the bitcoin faster than his cash reserves, so then maybe he might consider that he needs to get his bitcoin holdings to be valued at somewhere between 10 years to 25 years of his expenses before he feels comfortable to consider himself at fuck you status, yet if he is ONLY at 1-2 years in which bitcoin reaches the value of his annual expenses, then he still might feel that he need to keep more value in cash, but he already has plenty of liquid cash in regards to various backup funds, so he might feel that he wants his cash to work for him, so he might consider putting some of that into properties, equities, bonds, commodities and/or cash equivalents .. and surely I am not even suggesting shitcoins even though some guys might put some value into something like shitcoin or even into business ventures (hopefully not money losers).

So there can be various goals and/or threshold points to reassess the bitcoin investment and the extent to which to potentially have some of the value spread out.

Quote from: Salahmu on Today at 11:18:30 AM

Quote from: mamesso on Today at 10:46:31 AM

Quote from: reefsea on September 21, 2024, 09:23:14 PM

Quote from: letteredhub on September 21, 2024, 08:12:20 PM

This piece literally sums up the whole idea of investing wisely which is by investing an amount of money you can afford to lose. Investing with a sense of moderation. We need not put all eggs in one basket and by way of this in figuring out our respective level of balance to avoid reckage is by diversifying our investment to other physical assets within our reach that we know can be profitable in the long run. Now this doesn't mean that bitcoin doesn't have a bright future ahead to do better but it's just a way to guard oneself against future uncertainties everything being equal.

Confidence is in yourself, if you have made up your mind to buy Bitcoin why should you diversify your assets.
In my opinion, if you want to be successful, just get past your doubts, it is true that investing is not with all the money we have but only a part of it, aka we invest with the DCA strategy.
Saylor alone who bought thousands of BTC did not diversify his assets, not to measure it but he knew BTC would not die or lose value if the internet still existed in this world.
Also, you are still hesitant about bitcoin because your post has various meanings that can be explained because you said you have to diversify. It is not wrong, but try to stand with your beliefs.

Portfolio diversification is a basic principle in investing that can reduce overall risk, but as long as the chosen coin has strong fundamentals like Bitcoin, then diversification is not necessary because the more people adopt it, the value of Bitcoin will continue to increase due to its scarcity. Bitcoin has a strong reputation and has been widely adopted around the world, making it more stable than other crypto assets. Although its price also fluctuates, historically Bitcoin tends to recover and continue to increase in the long term. Doubt will hinder the path to success in investment, Bitcoin is the best choice for those who want to invest long term, while DCA allows investors to collect Bitcoin periodically with a percentage of money prepared to invest.

Your reason for NOT diversifying beyond bitcoin comes off as a bit superficial and even inaccurate.

1st) for anyone brand new to investing, there likely is no need to diversify beyond bitcoin and cash because it can take a long time to build an investment.. 5-10 years or longer just to build an investment to such a level that it has one year's worth of expenses - so why dilute one's investment if it is taking so long to build up to being even a significant size.. and also in the early years of investment, there will be a need to build and/or maintain some kinds of backup funds, in the event that the person might not have previously had back up funds, there is more need to ensure the size of emergency funds when investing into something volatile like bitcoin since you are not going to want to have to tap into your bitcoin investment at a time that is anything except your own choosing.

2nd) Traditional concepts (and rationale) for diversification is meant to protect your investment portfolio from having everything within it from being price correlated, so the diversification would tend to try to be within sectors of the economy that are not necessarily related - even though these days we have so many sectors of the economy that are corrupted by dollar debt, there still are likely preferences to try to diversify within different categories and/or sectors to attempt to lessen the likelihood of correlation... At least looking at properties, equities of various categories, bonds, commodities and cash/cash equivalents. When you mentioned other coins as a form of diversification that comes off as a somewhat retarded idea since it is difficult to imagine any alt coin that is not correlated with the performance of bitcoin. They only tend to perform well if bitcoin is performing well, so if the various shitcoins and related products are already largely correlated with bitcoin, the main thing that you would be adding by getting into them is an additional level of risk, and frequently I suggest that if someone cannot resist the temptation to gamble with shitcoins, then at least he should limit such gambling to at most 10% of the size of his bitcoin holdings.

Quote from: SuperBitMan on Today at 06:40:43 AM

a lot of people has already started losing hope in Bitcoin investment and the reason is that is not growing as they expected, one thing we must know is that Bitcoin is volatile in nature and that makes it go up and down in it's growth

I'm still wondering were you get that notion from or have you been able to go around asking people there take on Bitcoin before coming up with the idea that people are beginning to lose hope on Bitcoin?, for me I'm actually seeing the irony of what you are saying because I have seen so many people who have started investing on Bitcoin now because most of them are even happy that since the price has come down this way is a good opportunity for them to start, so I disagree with you on that unless is generally accepted you are talking about because people are always different and some of them are prone to object.

People do get anxious and have expectations of getting rich quick, and they find reasons to be negative about bitcoin or to see various developments in bitcoin as negatives, whether it is blocksize and/or scaling considerations, considerations about mining attacks, considerations of KYC and AML type requirements, considerations of how governments might battle bitcoin, considerations of how various financial products (such as ETFs) might negatively influence decentralization, considerations that bitcoin had already gone up a lot so it is now a bubble, considerations of how shitcoins are stealing bitcoins market share because they supposedly have better privacy or scaleability of programability and/or some other negatives.

There are always going to be some reasons to consider that bitcoin's investment thesis is not as strong as it could be or should be, and so a lot of people have missed out on investing into bitcoin because they get caught up in fears and/or excuses not to act.

I have no problem with guys believing some of the bullshit negative possible problems with bitcoin, yet I doubt that the various negative themes justify NOT investing into bitcoin, rather than justifying considerations to reduce position size.

Frequently, in the last 4 years or so, I have been suggesting that any beginner that they should invest 5% - 25% of the investment portfolio into bitcoin, and so if they have a lot of concerns, then they would invest on the lower end of the range and maybe even go below the range. In the end each of us is responsible for our own decisions regarding both whether to invest into bitcoin and if we invest into bitcoin, then how much. Choosing not to invest and/or choosing to invest whimpily into bitcoin are choices, and it seems that even the whimpy investor into bitcoin will have greater chances of being in a better place than the ones who choose not to invest, yet each cannot turn back the clock after 4-10 years or longer have passed and they made their choices on a daily (or weekly) basis regarding putting some value into bitcoin or not.