It seems that a lot of people have variation in their income too, and there may be periods in which they come across extra money that they can invest into bitcoin, or maybe they have periods in which their cashflow is tight and they are not able to put very much value into bitcoin. Being consistent may well be putting a priority on investing into bitcoin, yet the weekly amount does not necessarily need to be the same.
One of the reasons that we might describe a certain average cost per BTC historically (to back test) or to project into the future is in order to attempt to ball-parkedly describe some kind of a scenario in easy to digest terms, since of course if we describe how much a person actually ends up putting into bitcoin we might have a lot of variance from week to week, and maybe some weeks only have $10 invested into bitcoin and other weeks have $600 or more.. ..but there still might a bit of a preference to invest large portions of the discretionary income into bitcoin during the earliest of BTC accumulation phases, yet as the BTC accumulation might stack up, a person might decide to become a bit less aggressive. There surely is discretion in regards to how to treat their BTC accumulation, and guys might even end up making mistakes in terms of their choosing their own level of aggressiveness.
That’s a very notable point you just raised there. People’s incomes can indeed change and be like all over the place, making it always impossible or pretty difficult to predict just how much exactly that one will be able to invest in Bitcoin from a week to the next one. Just as you’ve rightly said, one may have a bunch of cash in their discretionary reserves to throw into Bitcoin for that week, and some weeks you barely have enough in your discretionary reserves and can only afford to throw in just a little amount of cash.
And I totally agree that in all this, it takes only consistence to be able to navigate through these situations, even when it involves being more aggressive some weeks and being less aggressive in others. It’s a lot more about prioritizing your Bitcoin accumulation and also being intentional about how exactly you’re allocating your finances.
I think the idea you also brought up of average cost per BTC is also pretty much commendable, because it’s a pretty great way of simplifying things and making them a lot more easier for you to track and take note of. Anyone who is actively involved in the market would understand that it’s not always possible or easy to outcome of the market, especially within the short term, but when we look at averages, we may be able to get a hang or a sense of what to expect.
Another essential thing to also consider is the fact that people’s priorities and financial goals may also change overtime. Some people start off their accumulation in a pretty aggressive manner because their priority was to build up their Bitcoin stash and portfolio as quickly as possible and as they get closer and closer to their goal, they may feel like they wanna relax a bit and start to feel a lil more comfortable and then eventually change their mindset and decide to scale back their investment, which definitely reduce their aggressiveness.
And of course, we can’t completely ignore the element of discretion which is totally unavoidable when we are choosing to decide how to manage our bitcoin investments. It’s really not easy to know for sure whether the next move we plan to make is actually the best or even the right, leaving room for mistakes and errors. But I believe that’s an inevitable aspect of the learning process and also about being pretty much international and putting in one’s best in what they’re doing with the resources that’s available.
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It seems that as we are learning about bitcoin, and as we might even be building our bitcoin accumulation systems, there may be a variety of ways that we are measuring our progress, and surely the more that we get into setting up systems to attempt to increase the aggressiveness of our BTC accumulation systems, we likely need to pay more attention, and their may well be some fun in terms of plotting out various scenarios in regards to where we expect to be, and then perhaps later to show the extent to which our projections ended up being correct.. whether we are looking 3-6 months down the road, 1 year, 3 years or some other longer timeline. Some new variables in our calculation of our goals might come into play, and sometimes some of our variables might disappear to cause changes in our assumptions about the realistic nature in regards to having certain kinds of sub-goals.
Yeah, as we proceed and grow in our Bitcoin journey, it’s absolutely normal to develop various techniques and ways to measure our progress as well as it’s normal to develop one’s personal strategy. And the more we advance, develop and become more sophisticated in our Bitcoin, there’ll certainly be need to pay attention to the details.
I also love how you mentioned plotting out scenarios and projections. Being able to track one’s progress can be quite fun for sure because it also makes you have a visual of how close you are to your goals and projections. Whether it’s the short term goals, which is around 3-4 months or even 1 year, or you’re focused on the long term, which we can say to be around 4, 5 to 10 years or/above, you’ll be able to stay more focused and motivated when you’ve got a clear plan already in place.