Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
JayJuanGee
on 22/12/2024, 04:36:25 UTC
[edited out]
Yes, I understand of course there is a basis for thinking that continues to be thought of when the market situation changes suddenly. But is there anything else that should be done at a time like that, for example like you where your accumulation has reached a point of satisfaction and is there a stronger thought that supports the idea of ​​continuing to buy when dips come.

With your long experience and good management, of course you have succeeded in reaping quite a large profit in the bitcoin investment that you have made.

However, I am not very good at calculating percentages but with your initial accumulation in 2013 of course you have achieved a lot of percentages if calculated at the current price.

How is your mindset where you can manage as well as possible when you decide to sell when you need it.
To be honest, we are still in a fairly early accumulation because we have not reached 5 years of routine investment, I plan to follow your steps in the future, when satisfaction is achieved we will do the calculation to achieve the percentage of profit in the time we spend investing in bitcoin. For example, in the 6th year we will calculate the amount of profit, but in such conditions, hopefully our steps will continue to accumulate until reaching the 10-year mark.

Surely you could have a running tally of how much you are spending to buy bitcoin and then you can also see how many bitcoin you have, so that would give you your average cost per BTC, and perhaps on a running basis you can see how much you had at various points, even summarizing each month in regards to where you are at. 

If you are fairly sure that you don't quite have enough BTC, then, hopefully you bitcoin stash continues to grow every month.

Of course you can also monitor your current standard of living, and you can monitor whether at some point the bitcoin that you accumulated might start to be valued several years worth of your income/expenses, and yeah, it takes longer to achieve if you do not have very much discretionary income and/or if you are unable to put in very much value each week or month.

So if you are ONLY able to put it 10% of your income per year, it is going to take you 10 years to reach 1 year of your income invested into bitcoin, and surely, the value of those holdings could also be increased if the BTC price goes up at some later date after you had been able to accumulate more BTC at earlier dates (if that is possible?).

One of my own personal advantages was that by the time I had gotten into bitcoin, I had already been investing into non-bitcoin /  traditional assets for more than 20 years, so I had already invested more than  a few years of my then income into various investments (including whatever price appreciation that had happened in the investments too.  So in that case I was able to be more aggressive than a newbie, but i still felt that I was constrained in moving some of the value from my traditional investments into bitcoin, and so in that sense it took me about a year to get my bitcoin allocation to be 10% of my various other quasi-liquid investments that I had at that time... so then when I spent another year continuing to invest into bitcoin and I got to 13.5%-ish, I was feeling over-invested into bitcoin (based on my then ideas, even though these days, if I were a newbie to bitcoin, I would not consider myself to be over-invested into bitcoin until I were to reach more than 25% invested into bitcoin, so these days I have considered that bitcoin has become a more safe investment and also there may be justifications to have higher allocations than previously justified at the time that I got into bitcoin).

It is not easy to try to imagine ourselves at a different time, even though many of the cash management rules still apply, and usually there would be more stress in the beginning years, yet as the value of your BTC holdings go up (in the event that it goes up, since it is not guaranteed) and as each of us should be learning how to better manage our cashflows in accordance with our personal circumstances, then surely we should be getting more and more to places of more comfort in terms of having more options and having more funds, even if we still might find ourselves continuing to need to accumulate bitcoin in order to keep building our BTC stash, whether we are able to get it built up to the value of several years of our income or not.