Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
laijsica
on 27/11/2024, 15:57:35 UTC
⭐ Merited by JayJuanGee (1)
[edited out]
My Dad (may his soul rest in perfect peace) would always advice me against selling my properties or belongings (for any reason) with intentions of buying them back later because getting them back would never be as easy as it looks, and the price may have even tripled by the time you're ready to buy them back, and i believe it's similar to selling off a percentage of your stash with intentions of buying in a dip because the next dip might even be higher than your anticipated price so it's a risk that i believe isn't worth taking.

You might be able to apply similar ideas to other assets and/or currencies, yet I have me doubts... . since bitcoin is likely the most sound money that has ever been put into existence, which causes potentialities that there could be a step up in its price at any time, and since we cannot know when the step up in price is going to come, then we have to make sure that we are erroring on the side of always being in and being really sparing with any amount of bitcoin that we might sell, especialy whil ew are in early to mid stages of our bitcoin accumulation journey.

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There is one thing I would love to discuss with an open-minded excellent economist though. Money is good money when it preserves value, serves as a unit of account, is fungible and portable, which implies that it meets demand for high velocity. The last point is the interesting part here because bitcoin doesn't only preserve value, but due to its scarcity and all the other characteristics, it is very likely to go up in price.

For as long as bitcoin is a promising investment that increases in value instead of only preserving it, people will tend to hoard it instead of using it. Doesn't that mean that FIAT will be needed because psychologically people would at least tend to use their inflating FIAT to either buy bitcoin or, also very important, keep the economy thriving due to investment in other assets like real estate and consumption of goods and services. Low investment quotas or high saving quotas so to say, can have negative effects on an economy. I don't know if I have a logic error here at hand, but that's a question I could never find a satisfactory answer to yet. What is your thought on this?

The reason I bring up the idea that FIAT would still have a function is similar to what happens in casinos when people are supposed to buy chips. Those chips are easier to spend psychologically and it feels the same with bitcoin. Touching bitcoin is almost painful if you have to. FIAT not, I don't care if I have to pay something and I got FIAT, not an issue at all. But selling bitcoin feels bad. That is why I think FIAT might still have a certain function for a very long time. Hope this makes sense.
Of course, FIAT cannot be replaced with bitcoin because they are to work hand in hand i.e, you need FIAT for your daily spending and to buy bitcoin if you are not being paid in bitcoin. Don't forget that FIAT is from the government and no way the government will get rid of FIAT which is their ultimate power that they use to manipulate the economy and cause inflation.

The only thing that will make us change money from FIAT to something else if the government have agreed on a new currency that's acceptable worldwide by all government. For example, back in the olden days, we use cowries to buy goods but it started through trade by barter, and gradually we started using gold before we started using paper note. So it's only if a new item is found to replace fiat that we will no longer use fiat. Apart from that FIAT continues to exist because Satoshi created bitcoin to be an alternative to fiat. Bitcoin is good to be a long-term investment that's when you will benefit from it most.
It is true that fiat cannot be replaced by Bitcoin, but it is recommended to trade Bitcoin for intra-trade transactions. Recently, Russia is trying and they are going to launch a domestic crypto exchange for using their domestic cryptocurrency by 2025, which can be expected to increase the use of valuable currencies like Bitcoin on a large scale.

News Link: https://invezz.com/news/2024/08/27/russia-to-start-cryptocurrency-trials-for-cross-border-payments/

Yes we need fiat to meet daily needs, where an investor keeps injecting fiat to increase his wealth. A part of the growth of Bitcoin should be allocated for fiat investment, which will increase the possibility of your Bitcoin holding increasing with the growth of your real wealth. It is true that Satoshi created Bitcoin to introduce an independent financial system, which is a financial hedge against fiat. He may have wanted to create a separate asset class, in contrast to the imbalance between wealth and purchasing power that inflation creates among people, through which investors can create their own independent financial system.
One of the benefits of long-term investment in Bitcoin is that an investor allocates a portion of his real assets and income to accumulate Bitcoin, as his holdings grow over time.