And if I may ask @JJG how much Bitcoin do you think or feel an investor should accumulate in less than a year. However, how people are able to accumulate enough Bitcoin shouldn't dismay you because there are people who are stinkingly rich and this kind of people accumulating enough Bitcoin in their portfolio wouldn't be a problem or big deal to them regardless of the market price and I want to believe some of them don't usually use the DCA but rather the lump sum and their 3 - 4 times lump sum can be some investor's 4-6 years of DCAing if not more.
When it comes to investing, there is no set rule as to how much bitcoin you should accumulate in a year. For investing in Bitcoin some people buy large amounts of Bitcoins while others buy small amounts of Bitcoins. So it is clear that those who regularly buy large amount of bitcoins will grow their investment portfolio very quickly in a short period of time and those who regularly buy small amount of bitcoins will grow their investment portfolio slowly and their investment portfolio will take longer to grow.
If we look at MicroStrategy's investment strategy, it can be seen that they are currently buying Bitcoin at a very fast pace. They have purchased a large amount of Bitcoins in the last two months which has resulted in their investment portfolio growing very rapidly in a short span of time.
No matter how big the Bitcoin investment is, we only need to keep in mind that holding Bitcoin in the future days, institutions or individuals who are there will mainly depend on holding Bitcoin for their investment. Some investors who are there mainly hold it for a short time. I think such a move is wrong, because if that person increases the duration of his investment, then I think his Bitcoin benefit will definitely increase several times.
Among them, the microstrategy company is playing one of the roles, because the duration of their investment will depend on them for the next few years. They have invested the most Bitcoin in these two months, November and December, but in these two months they have bought the DCA method and deep.
The holding may look small in your portfolio in the bearish season, but do everything possible in your capacity to hold the Bitcoin for long term before you will dream on how to release them for sale and it will help you to make a huge income from Bitcoin. Have you come to ask yourself why some big men and poor men wish to hold Bitcoin in the bearish season, because they know that is the best season to use Dollars to purchase some huge amount of Bitcoins that will allow them to boost their income when the bullish season appear in the market. I don't think, those that have the skills of Bitcoin holding will use this month of December to accumulate Bitcoin, because the price of Bitcoin is still high for majority of investors to purchase Bitcoin than to wait for the bearish season investors are waiting to come before they can purchase and hold Bitcoin for another bullish season. Well, using the method of DCA to accumulate Bitcoin is very good to those investors that have other sources of income, because you need to have what will be sustaining you in the bearish season not to sell your Bitcoin than to wait for your target to happen in the bullish season before you can sell to take a double income.
I think the issue of Bitcoin price been high has been tabled and deliberated on so why saying the price of Bitcoin is high again and i have come to realize that what one speak of something is how that particular thing will appear to them, it is more like having a belief on something so having this mindset can or will make you not to invest in this period. The price of Bitcoin has depreciated to $92k plus and perhaps it is a nice time to buy and hold because the price we are going to see this year new will be massive and incredible. However, talking about selling in the bullish makes me feel that you are a short term investors because a long term investor won't be talking about selling their Bitcoin now because they knew the potential of Bitcoin though selling Bitcoin in the bullish won't be a bad idea if an investors started holding for like 6-7 years ago.
Whether a bitcoin holder is in a position to sell after being in bitcoin for 6-7 years is not merely a function of how long he has been in bitcoin, yet also how many BTC he had accumulated.
If you are thinking about selling BTC merely because it is in good profits and you have been in for 6-7 years, then you still seem to be trading rather than investing.
We need to know details in order to figure out whether such person might have had transitioned from accumulation stage to maintenance to liquidation.
I have a hard time imagining a regular investor (even one who had been investing for 7-ish years) getting to a point of being served by selling his bitcoin, unless he had been able to significantly front load his investment. Let's go with an example of the person who has been investing around 10% of his salary into bitcoin, and so he had been earning $30k to $50k in the past 7 years and investing around $100 per week, and so after 7 years he had invested $36,600 and he had accumulated 2.71 BTC.
If we look at the 200-WMA value of his 2.71 BTC as compared with the spot price, we have $116k versus $250k, which would ONLY be around 2-5x his annual income, which seems way too premature to be considering the quantity of BTC to have reached a status of enough or more than enough... We can come to differing assessments about this and truly we could consider scenarios in which a person of similar means would have had been able to accumulate 2-10x more bitcoin within the same timeline, which would put him in a much better position to be able to assess that he has enough BTC or more than enough BTC in order to start to feel at liberty to start selling some of his BTC. Imagine a scenario in which the same person was able to front load most of his investment, which means that maybe he could have had bought most of his BTC stash in 2018 while the BTC price was going down, and so maybe he could have had achieved a $36,600 investment into BTC with an average BTC price of around $6k - which surely would have had put him at right around 6 BTC, and if he had been able to figure out ways to garner up more funds (such as if he had already been an experienced investor and he could reallocate from other investments into bitcoin), then surely he might have been able to accumulate 20 or more BTC, which would surely put him at a better status, and likely even able to sustain an income off of his bitcoin stash that would match his current level of income, if that might be what he might be wanting to achieve.
Sure the amount of time in bitcoin certainly helps to figure out if a person had been able to put himself in a position of overaccumulation of BTC, yet we likely need to know more beyond just the fact that the guy had spent a longer time accumulating BTC in order to know if he might have been able to put himself into a position of being able to start to sell some of his BTC either based on price and/or based on time.
I vehemently agree with you, with the rapid growth of Bitcoin every wise investor who hasn't invested in it ought to start investing now as Bitcoin will be more capital intensive within a short period from now.