Is it really a must to for investors hold bitcoin for 8 to 10 years, before someone can see profitability in the investment?
Is not a must but a beneficial duration of investment to some persons because your invested money determines how long is going to be, for example you and I have a plan of getting $26k worth of Bitcoin and you started with the weekly investment of $100 and in five years you should be having nothing less than $26k in Bitcoin meanwhile instead of using the same amount you are using I choose $50 based on financial insolvent, so actually in the five years I will be having only $13,044 in Bitcoin while you have meet your target in just five years I'm still half way to it, so to get this I will have to give myself another five years to get there making it 10 years I have spent to achieve it, so actually this example is just a little explanation to show you that 10 year investment is not a must but with your plan it can take up to the years I have explained.
Of course, if you invest $100 per week for 5 years, then each year you would be investing $5,200, so after 5 years, you would have $26k invested. Yet you cannot know know for sure if the dollar value that you invested into bitcoin will be more or less of the amount that you invested. Your investment into bitcoin could be worth several times higher or it could be worth zero or it could be worth some amount in between.
We invest into bitcoin because we believe that it has decently good fundamentals to cause it it mostly be going up in value rather than down in value, yet we have no guarantees.... so we have to select our investment size in accordance with how much we are able to (and willing to) put into such an asymmetric bet that could potentially cause us to lose up to 100% of the value that we put in or that it could appreciate in value more than if we had placed such value in other locations - and there are variations of those scenarios... which we can make estimates, yet we are not going to have certainties about the values until time plays out and in the meantime, hopefully we are also securing our bitcoin in safe ways so that we do not end up losing them due to our own lack of proper care-takings.
I agree with you. Bitcoin is a volatile cryptocurrency. It fluctuates constantly. I cannot say how much profit I will get no matter what I invest for a period of 5 or 10 years. It can decrease or increase many times. However, even if it fluctuates in the short term, according to its past history, those who invest here in the long term have benefited a lot. If we follow the time from 2020 to 2023, we will see that the price of Bitcoin is more or less sky-high. So, long-term investment never fails. But if there is a big crash, then that is different. Therefore, to invest in Bitcoin, any person must decide how much risk he wants to take. Is he completely ready to lose his value or not. If a person does not want to lose his value, he can reduce the level of investment, that is, if he loses his value, he should not suffer much loss. Now, if anyone is worried about the safety of his funds, he should keep his funds in a "cold wallet".
First, I would not call investing since 2020 or so to be long term, yet if you invest more than 4 years then you may well be investing rather than trading, but 4-10 years would still be a short term investment compared to 10 years or more would maybe start to be considered as a long term investment.
Second, you seem to be thinking correctly that if guys are investing from their extra money, then they will more likely get less attached to whether they win or lose their money, since they should be investing from money that they can afford to lose, and they should realize that bitcoin is ongoingly volatile whether long term or short term, and at the same time when they are in their earlier stages of investing, they may well have extended periods in the negative, or even not very good profits on their holdings.. which also should not be of concerns to them, as long as they came to bitcoin with the right mindset, including realizing that bitcoin profits are not guaranteed.
Third, Another potential issue related to volatility is that there could be guys who have difficulties knowing how to deal with the considerable volatility to the upside, which can become additionally more difficult if they are already struggling financially, but then they see their bitcoin holdings go shooting up several times its value in a short period of time, so then instead of keeping investing, they may well get tempted to cash some (or even all) out, even though they had not been in the investment for very long, so then they become tempted to become a trader rather than an investor, even if they came to bitcoin with an investment mindset. I am not going to proclaim that I know exactly how to deal with those kinds of emotions, especially since there will be a lot of variance in terms of any of the
9 individual factors that might be affecting the emotions that the guy is experiencing.
Fourth, in the very beginning of investing there may not be very much value, yet you are correct with implying that cold storage becomes more and more important as the bitcoin value (and/or stash size) is going up. It can also become challenging for individuals to realize the level of their own responsibility in being their own bank and figuring out if the ways that they are holding their coins are sufficiently secure and how much coins they may be putting at risk based on certain ways that they are holding their coins.
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In my own perspective, I think that the ideal time you feels like you have accumulated enough Bitcoin is up too you as an individual, though as humans we always want more, but in life we will definitely get to that level where within us, we can admit that if we stop now, we can as well be ok with what we have, so till we get to that point, I don't see any reason to stop accumulating Bitcoin when it's still very cheap as now.
Lastly, we all know that the stash of Bitcoin in your possession determine how wealthy and profitable you might become in the future, so till you get to that point of satisfaction, you wouldn't even see any reason to stop accumulating Bitcoin, because you aren't satisfy with your current stash of Bitcoin in your possession.
To me, it seems that instead of being vague about how much is enough, it is likely good to figure out if your goals are getting to fuck you status or some other smaller goal, and frequently I like to consider fuck you status since it is a way of determining a certain level of financial freedom and options.
Yet you might not need to exactly get to fuck you status in order to realize that you are on the road to getting to such status, so then you would likely be needing to consider how many years (or how much time) your BTC stash can support you at you current level of annual consumption (or your anticipated future levels of annual consumption). And, those kinds of valuations should be measured at bottom prices, such as the 200-WMA, rather than spot prices.
Frequently, when the bitcoin stash is becoming valued at several times annual income, we know that we are on the right path, yet we might still not have enough coins yet, yet each time (perhaps weekly?) we buy bitcoin, it is not really marginally adding a lot of value to our overall BTC stash size, yep continuing to buy still might be the most logical approach..., but surely our stash size does start to affect our thinking about whether we mostly have enough, and we may just need to allow time to pass to continue to experiencing a likely ongoing compounding of our bitcoin value (even though the compounding is not guaranteed, either)..
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If I may ask how much Bitcoin do you think one will have and said it is okay for me perhaps let me stop? And why will they stop when they have all it takes to keep the investment running smoothly?. Then again I feel the only people that will think of stopping their investment because they feel they have accumulated enough are people who are struggling to accumulate it because if you are accumulating Bitcoin with little or no stress definitely you wouldn't want to stop no matter the amount you have I mean it is just like saying I'm tired of doing business that will give you a good return in the future looking at it potential. However, I wouldn't want to say for everyone but me personally I can't stop accumulating no matter the amount of Bitcoin I'm holding provided it is not stressing me.
You may well be in the right mindset sotelorene, since you have ONLY been registered on the forum for a bit more than a year, so if you accumulate bitcoin for 4 years or more or even starting to get up to a couple of cycles of accumulating bitcoin, and with bitcoins level of volatility, you might start to reassess the effectiveness or value of your ongoing buying of bitcoin versus your just letting your bitcoin ride for a while and to use your fiat in other ways.
Your own feelings about what to do also may depend upon how aggressive you had been in your bitcoin accumulation in your early days, so historically being aggressive early (without overdoing it) had been beneficial to those longer term investors to either discontinue their needs to continue to accumulate bitcoin or to lighten their level of BTC accumulation aggressiveness at later stages.
For example a guy who might have been buying
$200 per week of bitcoin for the past 7 years would have invested $73.2k into bitcoin and accumulated about 5.4278 BTC, so if he is continuing to buy bitcoin, then each time that he is buying $200 worth of bitcoin, he might be feeling that he is not really adding very much to his BTC holdings. Another thing is that in 7 years his income may have gone up so that he is able to choose whether he wants to increase his bitcoin investment or to just keep his weekly investment amount at a similar level, so he surely has more options as his investment continues to grow, and he is seeing that his earlier investment timeline had ended up paying off, but he still might not be confident that he has enough BTC.
With the
5.4278 BTCpot accumulated amount of the above hypothetical guy, he might be considering that the spot value of his stash is $540k and the 200-WMA value of his stash is $231k, so he should not be getting distracted by the spot price, and I would imagine that he would want to continue to accumulate, yet surely depending on his goals, and 7 years of ongoing BTC accumulation has been a good thing, yet many times investments take longer than 7 years, even if the investment is doing quite well, there tends to be ONLY so much value that any of us can put into any investment (including bitcoin) at any one time, so many of us end up being stuck with some form of DCA investing, which may well involve investing as much as we can (within our discretionary income) that we are able to accomplish without over doing the matter.
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Perhaps every thing you have is quite right. The satisfaction of humans is infinite to an extent and as such people (those of us who are into bitcoin) would want to keep buying even after we realise that we have accumulated enough bitcoin and the word
enough is peculiar to every individual (investors) as my emd point would probably be the very beginning of accumulation of others.
However, it's obvious that we (newbies in bitcoin investment) shouldn't at this point be in any contemplation of stopping as we haven't reached any significant amount in our possessions. Satisfaction in our bitcoin investment is quite a long journey which I believe none of us here is in such position to claim we have enough bitcoin even though it's obvious that I do not know how much you ( including others ) investment regularly (daily, weekly and/or monthly) into bitcoin yet its a fact that none of us here is able to hodl a good amount of bitcoin.
Some newbies will be able to front load their investment more than others, yet in order to make meaningful progress in building their bitcoin investment, an overwhelming majority of people do tend to have to build their investment over a long period of time and continuing to invest consistently, persistently, ongoingly and perhaps even aggressively... including quite a bit more than a whole bitcoin cycle... perhaps even 2 cycles or more.