It appears that some investors may not really understand what it means to hit a state of overaccumulation or a fuck you status, some believe they’re ready to start withdrawing when they’ve stashed out a good amount of Bitcoin, which is absolutely false. If an investor is still seeking to get his hand on more bitcoin and still wish to accumulate more, then that’s a pretty good sign that they’re yet to hit a state of overaccumulation and therefore not a good time to start initiating a withdrawal because they’re still pretty much in an accumulation phase, which is a pretty wrong time to thingk about using or withdrawing their Bitcoin.
Yeah, many people often think that this overaccumulation state is when they’ve managed to accumulate a lot of Bitcoins, they mostly feel they’ve reached this stage before they actually do get there, so it’s good to remember that the take home from this is that, when an investor still feel the desire to accumulate more bitcoin, that’s a pretty good sign that they’re yet to reach that state.
I believe the over accumulation status has it's reference on your accumulation target, whether you've exceeded it or week within it.
Let's take for example, someone with a target of accumulating 15BTC, ends up getting 20BTC before their holding period terminated. Such a person is now in his over accumulation phase.
Now considering the fact that the person desires to have even more BTC to his portfolio and resets his accumulation target to 30BTC, then such a person switches from being in over accumulation stage to being in an ongoing accumulation process and should abide by the principles of consistent, committed and aggressive purchases until he reaches his new target, possibly surpasses it and returns to an over accumulation stage again.
I think setting a target of reaching a particular amount when accumulating Bitcoin is okay however to avoid being tempted to withdraw when you reach that account so quick is better we set a target of accumulating and holding for a particular year maybe 5 to 10 years or even more will be better, the reason why I'm saying these is because what determine how successful you may be in your Bitcoin investment journey is not the reaching a particular amount but holding and waiting till Bitcoin breaks a great price record.
setting a target of a particular amount to reach when accumulating BTC is not okay, only an investor without a vision of investment can do that, an investor who is committed and know what he or she is doing we never set aside a particular amount he or she will reach when accumulated BTC.
That why there is something call discretionary income, this is the income you we use for your investment.
And Also know that emergency fund is needed for the smooth running of your investment, to enable you buy your BTC and hold for long term.
I think you are confusing your self because I don't see any connection with your first paragraph and your second.
Yes I said setting a target of reaching a particular BTC amount is okay and I also said however to avoid being tempted to withdraw when you reach that account so quick is better we set a target of accumulating and holding for a particular year maybe 5 to 10 years or even more will be better.
Dee_BlackdAddy you can't say setting a target of reaching a particular BTC amount is totally a wrong strategy because one can set a BTC amount target that can even take more than 10 or 20 years to achieve so In a case like this how is it a wrong strategy, when Bitcoin was $1k there may be investors who set a target of accumulating and holding till Bitcoin hits $100k if any investors back then did this I don't see anything wrong with that.
In my own perspective, I think that setting an accumulation target like ten to fifteen years is not a problem, where the problem is, is setting a target by figure, like example; you will say you want to accumulate like $50k worth of Bitcoin in ten to fifteen years time from now, that's what I think is the problem, because by doing so you are limiting yourself to a certain amount which I believe that if the target is set by timeframe, you stands to accumulate more Bitcoin than you can ever imagined, but if it's set by numbers, their is a higher probability of you stopping if your target is met fast or your stash look bigger in your eyes.
So while accumulating it is of our best interest to accumulate and hodl by timeframe instead of numbers, because due to the huge potential of Bitcoin, it can easily breach the number target we have, and we might be compel to sell prematurely when it's no where near it peak price.
And the typical example of that is investors that sold at $72k thinking that it's closer to the top or their target has been met, but those that are still holding till now are in a massive profit already because their timeframe target is not met yet which they may even earn more, as the years goes by.