Quote from: JayJuanGee on Today at 06:02:56 AM

Quote from: Pi-network314159 on Today at 05:26:35 AM

Quote from: JayJuanGee on November 05, 2024, 03:57:26 AM

Quote from: Pi-network314159 on November 05, 2024, 12:19:57 AM

Quote from: JayJuanGee on November 04, 2024, 11:35:02 PM

Quote from: Zackz5000 on November 04, 2024, 01:10:57 PM

Quote from: Ever-young on November 04, 2024, 08:52:19 AM

Any newbie who categorises short-term holding and trading as the same thing has a long way to go as they need to learn the difference and make a decision on which one they want to do and which one will favour them.

Cut

Cut

Snip

Do you need an example?

Let's say there were a couple of guys who got into bitcoin about 10 years ago, so around November 2014 and perhaps the guys were in their early 40s at that time, and so one of them largely accumulated and sold small amounts along the way (Hypothetical 1) and the other one (Hypothetical 2) sold too many BTC too soon. Let's say that both of them largely accumulated bitcoin for 6 years, so they were pretty aggressive about their BTC investment and bought about $150 worth of BTC for every week for those six years and then so each of them invested around $47k and they accumulated right around 55 BTC... so surely not bad.... Perhaps Hypothetical 1 might have sold around 10 of his BTC at various points after November 2020, so he still has around 45 BTC, yet hypothetical 2, decided to sell all of his BTC around November 2020 because he was just too stressed about his BTC, and surely he was able to get $20k each of of his BTC, so hypothetical 2 ended up getting over $1 million for his BTC, and he was able to buy some property, cars and even go on a few vacations for experiences.. He had to pay taxes too.. but sure, he still had decently good sized profits from his having had accumulated BTC for 6 years and he deserved a reward, no?

This story is very interesting. Well according to the story and or narration I see that hypothetical 2 may have gotten a decently good size profit from his $150 investment in each week in 6 years with a total of $47k worth of bitcoin just as hypothetical 1 but his reward can not be as thesame as hypothetical 1.

Yes hypothetical 2 deserves a reward, but the reward would have been better off if he could have hold it way longer. Let say the $1m realisation from selling all his 55btc could solve most of his problems then, but he may not have opportunity to acquire such amount of bitcoin cheap as he did way back 2014 today. I think hypothetical 1 deserve a better reward. Because if he held his 45 btc till current date, he will be in position of about $3.32m according to bitcoin price at this time of typing, which is $73900. So he has made and additional $2.3m profit compeard to hypothetical 2.

Quote from: JayJuanGee on November 05, 2024, 03:57:26 AM

I personally believe that Hypothetical 1 would have had been much better off than Hypothetical 2 because he largely just hung onto most of his coins, but hey whatever guys can do what they like and they can follow whatever plan that they like in terms of how they might decide to manage their BTC once they reach their accumulation goal. I also think that selling large portions of your BTC is dumb, even though people can do what they like including that they may well still be in quite large profits from their decision to get into bitcoin and to get out (so they profited a lot by having had been in bitcoin), even though they end up making the wrong choice in regards to how to manage their BTC once they had spent so much time, energy and even value building up their BTC holdings over several years.

You speak as if you don't care but I know you do. Because if you don't care you wouldn't have been advising against selling too quickly. But I know people will still mess up by selling down the road after much warning, but the truth will never depart even as most people would likely sell way too quickly. Like I earlier said btc investment is a matter of choice. Just like taking the Camel to the stream but not forcing it to drink from the stream.

Quote from: JayJuanGee on November 05, 2024, 03:57:26 AM

How are you going to manage your coins if you get into a situation like these two guys after 6 years accumulating and feeling that you have reached your BTC accumulation goals?

If I had a six year plan and it happens that I made somuch profit in the interval of 6 year and I discovered that my 1 btc of 2020 is worth $20k which my total investment of 55btc was $47k then I will sell only 1 to 5 to shave off the additional 5 from the 55 making a round figure of about 50btc then changing my plan by adding additional 6 years. Though I may sell along the line but would not sell all too quickly. To cut the whole story short I would have like to do like the hypothetical 1.

The truth of the matter is that it can be very tempting to sell most if not all of your bitcoin just like hypothetical 2 did, and he ended up with nearly $1 million in profits out of a $47k investment, so it is difficult to proclaim that he did not profit, even though he would have had been better off to hold onto more of his BTC, perhaps some variation .. yet whenever any of us is attempting to create a somewhat realistic hypothetical comparison, we have to show how there can be a considerably great dilemma - including that we do not have the advantage of hindsight when we are caught up in the moment and we might have a variety of dilemmas that include temptations to consume and/or invest and even perhaps speculating that we might end up better off by selling most if not all of our BTC...

yet the more that we learn about bitcoin, the more we likely figure out that there are quite a few advantages to try to employ longer term HODLing and accumulating strategies, even though surely also at some point we may well transition out of mostly accumulating and into mostly selling (or shaving off here and there), and we still might be able to figure out a fair and reasonable balance that allows us to start reasonably withdrawing bitcoin even if we know that with the passage of time we are going to end up with fewer and fewer and fewer bitcoin... but having fewer and fewer bitcoin still might end up being an o.k. result once we got to a status that we consider to be over accumulation so shaving off bitcoin from our stash along the way ends up being an approach that we consider to be acceptable to our overall situation.

Hypothetical 2 decision to sell all at once might have immediate rewards but also missing out on future gains. It's bad to see all that time and efforts spent accumulating bitcoin only to sell at once for a big chunk, hypothetical 2 could have thought about the potential future profits and benefits of holding onto some of his Bitcoin. By keeping a portion he might have set himself up for even greater gains, especially if the market continues to show a lot of growth potentials. The temptation to sell can be strong, especially when a significant profit is at stake, but hypothetical 2 would have looked back and think it would be better to hold onto more btc than sell all.

Hypothetical 1 approach of holding onto most of his coins definitely seems like a solid strategy in the future. Especially due to bitcoin potentials for growth, by holding onto most of his btc he could benefit from the long-term growth potential of Bitcoin.