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Yes, I have said in my reply, don't be too serious when looking at the Bitcoin market price because it can certainly disturb our concentration a little. But if you think that looking at the bitcoin price is not good at all and should not be done, I think your assumption is not quite right in my opinion. Because just think about how someone can buy bitcoin without having to look at the price on the exchange, and looking at the price does not mean buying bitcoin is fixated on the price. Because for example, people who do DCA once a week or once every 2 weeks, it is certain that when they accumulate they will definitely look at the bitcoin market price. So looking at the bitcoin market price that I mean is like that and not looking at it continuously every day or even every hour.
In addition, people who sell their bitcoins because they are afraid that the price will go down or because they have made a small profit, I think people like that even though they rarely look at the market, I dare to guarantee they will still make the same mistake. Because this context is basically about our mindset, the capital we use, and our intentions at the beginning when we want to invest in bitcoin. So don't blame it that it was caused by often looking at the bitcoin market price.
I question whether you are describing the matter of looking at price very well, since there surely are folks who will just blindly buy into something like bitcoin on a weekly basis, and they have no clue about whether the price is going to go up or down, and so they invest right around the same amount of dollars into the asset (in this case bitcoin) and so if the bitcoin price is down, then they get more units of bitcoin for each amount that the spend, and if the BTC price is up, they buy fewer of the bitcoin with the same amount, yet they are largely just budgeting to spend the same amount every week.
They may or may not monitor the price closely, and they may or may not keep track. I, personally, prefer to keep track, and when I was mostly accumulating bitcoin through ongoing buying bitcoin in 2013, 2014, 2015, 2016 and even into 2017, I was keeping track of each of my buys, and I was mostly not motivated by the BTC price, except perhaps on the margins.. There might have been some weeks that I was busy, and I just bought my budgeted amount at whatever the BTC price was at that time, and there wer other weeks, that I tried to time the dip within the week, yet if we got to the end of the week and the BTC price went up rather than down, I just bought with my weekly budget at whatever the price happened to have been at the end of the week... and surely there were points in time that I was buying bitcoin every week for a few years, and then at some point it seemed like it really did not make a difference whether I made that weekly buy on a dip or not. .and so in some sense the small amount that was only a fraction of my total bitcoin holdings, and yeah, I was still adding to my BTC stash, but if I had already been investing into bitcoin for 3-4 years, then maybe each new amount that I was adding might have ONLY been around 1/200th of the size of my overall bitcoin holdings, so why would it matter if I bought an additional 1/200th of my bitcoin stash at $74k or $82k or $96k, or $109k or some other amount..
The additional amount added did jnot really matter which price I bought it at.. Sure it would be more BTC if I bought at $$74k versus buying at $109k, but overall I was ONLY buying around 1/200th of the size of my stash, and if the BTC price went up during the previous 3-4 years, then, I may well ONLY would have had been adding 1/500th or even 1/1,000 to my BTC stash, so after a while the amount being added to the bitcoin stash did not seem to add up to being very much and/or making much of a difference to the overall size of the bitcoin stash. Sure in the beginning, it might seem to make a difference, yet in the beginning, each of us likely needs to get started and to establish some kind of a stash, otherwise if we do not buy any bitcoin, then we are only prepared for down and we are not prepared for up. From my own personal perspective it remains way more important to prepare for up rather than down, especially if we account for so much of the world's population is either not prepared for up or underprepared for up in terms of the size of their own BTC stashes.
I don't think they is any strategy that's perfect as they're no perfect strategy use in accumulating Bitcoin. Every strategy has his own flaws regardless on how it works.
Am just curious to know bro, what are the flaws of the DCA accumulating strategy?
Because in my own opinion it's the best and the most convenient way of accumulating Bitcoin because you will have the opportunity to buy at every price interval, on your own pace and even the lowest part of the dip that someone timing the market might miss due to the fact that he was hesitant if the price will go deeper or not, so I don't think that the DCA accumulating strategy has any serious flaws if it ever have one in the first place.
If you have a lump sum amount in front of you that you are able to spend to buy bitcoin, then if you choose to DCA with that money rather than buying right away, you are deferring your investment of that amount, so you run the risk of the BTC price going up during that time. There are trade offs to each of the BTC accumulation strategies whether we are talking about DCA, lump sum buying or buying on dips, and surely many times normies have money coming in on a weekly or monthly basis, and so DCA allows them to tailor their level of BTC buying aggressiveness, and many times they do not have lump sum amounts that come available to them, yet anyone who has lump sum amounts come available to them, they should at least consider all three of the buying methods (1) DCA, 2) buy on dips and 3) buy right away) rather than merely presuming that only one of the methods is best and/or correct for the then circumstances when the money becomes available.
I think holding and continuing to buy.. .and continuing to buy is likely one of the better things to do to continue to reinforce the practice of accumulating bitcoin until reaching a status of sufficient or overaccumulation.. which surely I think will take many normies 4-10 years or longer to reach such status of overaccumulation unless they are able to either front load their bitcoin investment or perhaps to be able to invest into bitcoin at high levels of their income.
Having bitcoin is the best thing one can ever think of to be financially stable. Accumulating it is not difficult, as some people think; it is very easy to do so. If people are so comfortable in holding fiat, I don't see why they shouldn't hodl bitcoin comfortably for years, which will yield good profit. The DCA method is there for investors to accumulate bitcoin easily with just the amount that they can afford consistently. Bitcoin investment is a good opportunity indeed that shouldn't be taken for granted because it is an investment that everyone can partake in. It doesn't discriminate, selecting only those who are financially capable; it is an investment for everyone, irrespective of what one earns as income. It is high time for people to learn how to be patient to hodl comfortably and get good profit investing in bitcoin.
As Stormisover mentioned in his responsive post, even though bitcoin is available as an investment for anyone and everyone, at the same time, a person still has to have discretionary income in order to invest into bitcoin. So there are some people who either do not have a discretionary income or they are not sure whether they have enough of an income to constitute being a discretionary amount that they can put into bitcoin for 4-10 years or longer… so sure, they can try to improve their situation and increase their discretionary income, yet it still might be difficult for some folks (based on their own circumstances) to be able to increase their discretionary income.
I consider bitcoin to be a lifetime investment, so once you reach overaccumulation status, then you would start to have the option to sell within the overaccumulated amount, and so I do not consider bitcoin to be an asset in which you might spend 4-10 years or more accumulating it and then you sell large portions of it or even all of it.
After reaching the accumulation limit of more than say 10 years of doing it and bitcoin is already in the range of $500K, it will sell bitcoin partly for sale because the goal has been fulfilled from the initial investment plan.
So I will not continue to hold for as long as possible, there is a time to sell but now is still not the time because it is still planting and until the harvest arrives after 10 years.
If an investor can continue to invest in Bitcoin through DCA for the next 10 years, he can definitely get very good results. Bitcoin will continue to become more valuable and stronger in the coming days, and Bitcoin can also cross the $1M milestone in the next 10 years or there is a good possibility of it.
All in all, there is no alternative to long-term holding, in short-term trading, the amount of money a trader earns and the amount of money he loses, his losses will be greater in the long run, because the possibility of losses is much higher there.
So the success of Bitcoin is just the beginning, it will achieve even more more bigger milestones in the future, so if an investor can maintain his holding for the long term, he can definitely achieve much greater success than his expectations.
It will be personal decision to continue investing in Bitcoin through DCA while they don't sell their Bitcoin after 10 years or so. But if they want to take their initial investment funds, they can do that after reaching the accumulation limit time especially if at that time, Bitcoin price is at $500K or more. But again, people are free to sell their investment anytime they want especially if they are already making a big profit because some people do that with their Bitcoin investment. But they need to still hold a big portion of Bitcoin amount for the long term and accumulate when the price drops deeper so they will have more chances to have more Bitcoin.
Let's say that in the next 10 years a guy who starts out in his early 30s invests into bitcoin, and he earns around $40k per year when he starts to invest into bitcoin and perhaps he earns close to $100k at the end of 10 years. His increase in income has to do with promotions and also the cost of living had potentially doubled. Let's say during that time, he invested aggressively into bitcoin at anywhere between 15% to 25% of his income, and so in the earlier years, he was investing $200 per week, and perhaps in the later years, he was investing close to $1k per week. Maybe he even lump sum invested around $20k into bitcoin, and he got around 0.22 BTC for that $20k.
Maybe at the end of 10 years, he ends up investing an additional $300k into bitcoin, and perhaps his average cost per BTC is around $150k, so he got an additional 2 BTC, and so his total investment is around $320k and he has 2.22 BTC. If the BTC price is around $500k, then he may well not have enough to discontinue investing into bitcoin, since his goal would be replace his $100k per year income and perhaps have a bit more of a cushion. So even after 10 years investing into bitcoin, he might consider that it may well be worth his time to continue to accumulate for another cycle .. perhaps having some flexibility regarding investing 3-5 years, but still considering that he will probably continue to invest about $1k per week, and then to see where he is at after another 3-5 years investing into bitcoin. He may well be quite optimistic based on his already progress and his current level of profits. So, yeah we have a lot of uncertainties in regards to what might happen in the next 10 years, and we can ONLY do the best that we can in regards to our circumstances and our attempts to project into the future.
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This is my exact sentiment here buddy, selling all at once is like saying that you are no longer interested in making money or you are saying indirectly that you will be dieing tomorrow, so their will be no point having any Bitcoin anywhere, because even Elon musk the richest man in the world now is still investing, because he is still looking to make more money, so why selling off all your investment and start afresh if he is going to start again at all.
In our earlier years of investing, we are likely trying to build our investment, and when we get towards later stages of our investment, we may well be mostly trying to preserve the value of our investments. So we likely have to have a mixture of investments that hold their value but that they are not necessarily losing purchasing power by holding them.
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Of course $500K is a very extraordinary target and will certainly generate huge profits for investors who start before 2020 or even this year and also certainly candidates to be crowned billionaires if they continue to accumulate in any way to increase ownership for 10 years and when the price of Bitcoin reaches $500K they will be satisfied with the profits they get which I think is legitimate if they want to sell some of the profits they get, or sell their initial funds to be able to enjoy or realize something very valuable including doing business or opening a business that still makes money. And I think when these investors see the results of patience and trust in Bitcoin will make them continue to do the same thing, continue to own Bitcoin and continue to accumulate for the next target and the profits obtained previously but become a motivation to continue to do the same thing and even increase their periodic purchases when they have additional income created from Bitcoin profits. And this is my view and motivation for Bitcoin.
Anyone would love to get a 10 bagger on their investment, meaning that it goes up at least 10x over their average costs, and so generally there is no need for the investment to earn any other income or any need to invest in any business, as long as the asset may well be holding its value and/or potentially ongoingly going up at least as much (if not more) than any amount that we might decide to start to withdraw from it. So for example anyone who might spend more than 10 years investing and if the is 10x in profits, then at some point he might start to feel that his investment is in a place that he can start to withdraw from it at a rate that is less than the amount that it is going up on a regular basis. 10x is generally a good appreciation amount to bring someone close to or even exceeding an amount in which he may well start to consider his ability to sustainably withdraw from his asset.
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You are absolutely right there is always time to sell. And I don’t think that we can keep holding for a lifetime, The primary goal of someone that is investing in bitcoin should be accumulating for as long as 4-10 years then at that point you have achieved your goals and you can try selling little by little so you don’t have to sell all your investments. At this point a newbie should be more interested in accumulating and getting to over accumulating.
It seems to me that any of us should get to overaccumulation status before we start to sell any BTC, and then we ONLY sell as much as to make sure that we stay in "overaccumulation" status... since we would not want to sell below overaccumulation status, since that would mean that we would need to return to accumulating bitcoin and we are no longer in overaccumulation status where we should be able to sustainably live off of our bitcoin.