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even though talking about profit is not out of place, if you dwell more about taking profits, you will end up taking profit too soon and never get the best from your investing in bitcoin. proper planning entails that you focus more about buying and accumulating enough bitcoin at this price which will ultimately turn out to becoming the lows in the future and set out good plans that will protect the bitcoin we have already stacked up which is the surest way to be in a good profit knowing that the extent of our profitability in our bitcoin investment is dependent on how much bitcoin we have acquired already.
Maybe we could attempt to emphasize the time element of bitcoin rather than the profit element of bitcoin, just to make a bit of a point.
I am pretty sure that there are ways to structure various kinds of hypotheticals in which a guy reaches or slightly exceeds his BTC accumulation goals, and then soon thereafter enters into some kind of a sustainable withdrawal system in which he is not concerned about profits, but instead just concerned about halving enough and employing sustainable withdrawals.
Since I personally consider something like the 200-WMA to be a way of measuring enough value that can be sustained, it would likely help if the person either accumulated his bitcoin position over 4 years, held his bitcoin for 4 years or bought an overwhelming majority of his BTC at around the 200-WMA price.
So there seems to be quite a bit more flexibility for guys to have their costs below the 200-WMA so that they do not necessarily have to concern themselves about the extent to which any of their spot price sales are in profits.. that is once they reach a point of even being ready for selling any of their BTC.. which I think is getting to a status of already overly accumulating a decent stash of BTC, so it seems best to get to a status of overaccumulation first.
We could come up with some examples of a guy who just gets into bitcoin and pretty much accumulates all of the bitcoin at once, such as he had just recently come across some money like an inheritance or maybe selling a property (or selling a business) or even winning the lottery.... So this guy is going to want to use bitcoin as an investment and as a way to slowly draw from his wealth.. he gives little shits about whether he is in profits or not, yet he already knows enough about bitcoin to appreciate that if he measures his withdrawal of value based on the 200-WMA.. then he likely could withdraw at some thing like 10% per year in a perpetual kind of a way... There would be quite a few ways to describe such examples of hypothetical guys, even though it seems that in this thread, we are presuming accumulating bitcoin over time rather than lump summing into bitcoin, especially since it seems way more likely that normal people who are investing into bitcoin, rather than trading bitcoin, will end up investing into bitcoin over decently long periods of time rather than lump summing into bitcoin with perhaps a few large allocations into it.
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Investors should not be misled by the lure of guaranteed profits. Bitcoin investors should be recommended that long-term deposit through the DCA method Profitability to get huge profit. Still, to make a profit investors should to accumulate
more than three cycles over a four-year period through discretionary income. Bitcoin can be financially helpful to you in the future through continuous deposit. It has been discussed the thread that the need for backup funds for investment protection and potential emergencies. For long-term Bitcoin investment/holding. The focus is on getting a decent portfolio by using a DCA strategy approach and increasing the amount deposited over time to address risk in Bitcoin. To increase holdings of volatile and valuable assets like Bitcoin, make gradual deposits and ensure proper use of each cycle to gain profits. Decent holding.
What do you mean by accumulating over 3 cycles over a four-year period? Usually when we are talking about cycles, then each cycle is 4 years, so if you are referring to three cycles than you are referring to 12 years.
Surely some guys may well take 12 years just to establish their bitcoin position, especially if they might not have a lot of discretionary income or maybe they cannot even invest 10% of their income.. so sure, we might presume that normal people might take more than 10 years just to establish 1 years worth of income invested into bitcoin, especially if all that they can invest is 10% per year... yet still there is variance in regards to how aggressive folks are able to be, specially if they might be able to increase their income and/or cut their expenses.
So I am not completely arguing with the idea that it tends to take a whole lot of time to really start to feel that we are making progress in any kind of investing (savings) that we might do, and surely with any investing that we might do, we are going to be greatly advantaged by having had invested in an asset that ends up having relatively good performance as compared to other places that we could have had put the value.. such as bitcoin (yet future performance is surely not guaranteed in any investment, whether referring to bitcoin or anything else).
Yep.
If a person understands how Bitcoin behaves through the cycles - he would definitely do it long-term no matter the dip or correction he may face along the line.
Those who responsibly look at their accumulated Bitcoins won't get rid of all of them in one swift go.
Yes, if an investor already knows the cycles that usually occur in bitcoin, it is certain that the investor will no longer hesitate to invest in bitcoin for the long term. Because the potential for the Bitcoin cycle to repeat itself every 4 years is 95% and is exactly the same as the previous cycle. What is different is that in each cycle the price of bitcoin always experiences a higher price increase compared to the previous cycle. For this reason, in my opinion there is no need to hesitate to invest in bitcoin. Because in my opinion, currently the most promising investment asset is bitcoin. What I mean by promising here is the potential for profit. That's why many people do DCA on bitcoin, regardless of the market price. This is because of the bitcoin cycle, because with this cycle people who do DCA feel safer. Because buying bitcoin at whatever price now, it is certain that in the next cycle will still make a profit. So basically we don't need to hesitate anymore to invest in bitcoin. Because bitcoin is truly the best investment asset of this decade.
Let me guess, you are right, but take a deep breath and think if it doesn't happen the way you have said it. In an investment, there are always chances that profits are not guaranteed. You have already given a 95% assurance, but you also need to know that 5% of risk, or less than 5% of risk, can terminate every profit you have planned to make from an investment. While investing in Bitcoin (which is 5% risky, as you said), you don't need to put your mind on making profits, all you need to do is understand that you are making a savings for the future (for yourself or for your children). Thinking of the profits you will make during the 4-year cycle might not make you continue investing after the 4 years. What you need to put your mind on is how to continue investing in Bitcoin through the DCA method, because through the DCA method you will be able to benefit from Bitcoin growth, so even after the 4-year cycle you can still continue investing in Bitcoin.
I have a hard time considering any investment (especially over a longer period having a confidence level of 95%.. and surely bitcoin remains amongst the best of investments, and perhaps even the best investment available - yet it still seems prudent to establish somewhat conservative upside scenarios.... so then there may well be considerations regarding how to invest aggressively, yet at the same time protecting oneself (financially and psychologically), at the same time.
Buying bitcoin at every dip implies buying bitcoin regularly. Bitcoin investment is not just like every other cryptocurrency investment. This is because it holds a promising future due to its limited supply.
"The maximum number of Bitcoins that will be created through mining is 21 million. As of December 2023, there were about 1.4 million Bitcoins left to be mined.1 This finite supply is one reason why some people believe Bitcoin will increase in value over time".
To me, when every single bitcoin gets into the hands of the investors in the future, bitcoin will be on a regular increase having a new ATH most frequently.
Bitcoin dips occur daily but most times only traders spot the dips. Even though I don't encourage trading, it is good to understand that what lies ahead of bitcoin is the reason to buy every Dip and hodl.
Trading makes someone always hungry and anxious and exposes a person to a higher risk. Bitcoin is a generational wealth and should be invested in for a long-term.