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If you're in your 40s and after you lost your job, if you want to depend solely on your bitcoin investment with getting a new job, you will sell too many bitcoin too early and be left with little bitcoin when the price becomes more expensive than you sold.
Yep. Anyone who is somewhat new to investing (or at least new to bitcoin investing) and who might be in their 40s, they may well need to take several actions to ongoingly be building their bitcoin investment and to keep on working (if they are able to) so that at some point they can stop working and start to live off of their bitcoin investment, so someone starting to invest in bitcoin in their 40s may well take 10-20 years to get to a position in which they no longer have to work, and hopefully they can start to live off of their bitcoin investment and/or to have their bitcoin investment supplement any other income that they might have.
Surely a person who starts investing into bitcoin in their 20s or 30s would have more time to build up their investment, as compared with someone starting to invest into bitcoin in their 40s, yet surely there are also trade-offs in terms of how much income a person might have and also if they had also potentially built up some non-bitcoin investments prior to their getting started investing into bitcoin.
Those folks saying that don't know what they are talking about, they have shallow understanding about bitcoin and what it represents. If I have real estates I will sell them all and use the money to invest in bitcoin. Real estate has many challenges and no matter the amount it generates, it will never come close to bitcoin revenue over time. So I don't agree with those individuals who think it's wrong to sell real estate to invest in bitcoin.
Many may disagree with this, and I think it is reasonable to disagree. Although Bitcoin is profitable compared to real estate, I would never recommend selling real assets to invest in Bitcoin, especially hassle-free real estate assets. Bitcoin is an asset that can never be touched and is very volatile or has a very low probability of loss, but there is a possibility of losing it. It can be due to your own fault, or due to accidental loss of access, or for any other reason. But once a real estate asset is in your name and in your possession, it will never be lost no matter what happens. Even if you lose the necessary documents, it is very easy to recover it. But is it the same with Bitcoin?
I think it is not at all reasonable for you to sell real estate assets or other assets to invest in Bitcoin because Bitcoin can give high returns in the long run. By doing so, you are turning yourself into a tempted investor, and you know why temptation can never bring you good results.
You are even violating some investment rules through such steps, which can ultimately cause harm to yourself. One of the main rules of Bitcoin investment is to manage Bitcoin investment with unnecessary money or invest money that you can lose. I don't think anyone would ever be willing to lose such a huge amount of money selling real estate or be normal after losing this money. I think it is wise not to make risky investments with money that you are not ready to lose. So by giving too much importance to Bitcoin assets, we cannot lose real assets.
You are free to your opinion in regards to proclaiming that real assets (including real estate) is superior to bitcoin, yet you are likely wrong... since you have been historically wrong.. just given the last 5 to 10 years we can see outrageously better price performance from bitcoin as compared with real estate.. and also there is no evidence to suggest that bitcoin's investment thesis is getting weaker with the passage of time, but instead bitcoin's investment thesis is getting stronger, including comparing bitcoin to real estate, gold, stocks and/or any other asset, yet sure, you can continue to disagree in terms of where you might choose to place your time, energies and value.
You are correct that bitcoin requires some extra precautions in regards to either keeping the private keys (which is likely the most valuable way to keep bitcoin, but does run risks of screwing it up), or a person can choose to hold their bitcoin with custodians, and surely if everyone were to choose to keep their bitcoin with custodians, then the value proposition of bitcoin would surely diminish, since a lot of bitcoin's power comes from abilities to directly hold it and to control transactions without intermediaries.
You are likely still going to be o.k. by investing into properties (or even into inferior assets like gold and/or equities), yet it is far from obvious that you should actually hold onto a property instead of selling such property for bitcoin, so you seem presumptuous to be suggesting properties are a better place to hold value, when properties have been and likely going are likely going to continue to financial perform worse than bitcoin, and your purposeful choice to have inferior performance remains within things that you are free to choose.. .even though it is problematic when you are preaching properties to be better than bitcoin, even though you are free to make those kinds of "have fun staying poor" decisions for yourself.
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well i think you are not still getting my point correctly. lets hypothetically presume that a person invested into bitcoin for retirement purpose starting from age 30, having the mindset of accumulating 2 to 3 btc or less in the next 25 years [55 years retirement], then it somehow happens that at age 40 such person was out of job, but that doesn't mean that such person will immediately have to sell his bitcoin to survive while he hasn't yet met his target which he still have 15years ahead. in this case this is when your discretion income will have to play it role to sustain you till you get another job. if discretion has been spent while you have not yet gotten a job then your emergency fund will be your second hope.
I like your example Samlucky O - even though you seem to be mixing up terms - since discretionary income is the amount of money that a person has coming in (most likely from jobs) that is still remaining after paying expenses, so if a person loses his job, then he loses his discretionary income, so such hypothetical guy who loses his job at the age 40 likely would be pulling from his reserve funds until he uses all of his reserve funds, then he would have to resort to using his emergency funds.. so yeah, hopefully he is able to find a job before he depletes all of his various kinds of backup funds.. because if he completely runs out of funds, then he would ONLY have his bitcoin remaining as his only remaining source of funds..
if emergency and discretion or backup funds has all been used and there is no other hope then selling some portion of your bitcoin investment will be your last alternative. so all i am saying in anticipation is that when you are out of job, selling your bitcoin to bail yourself out should not be your first priority except you run out of emergency and reserve fund before you can think of selling some portion of your bitcoin and not all.
I surely agree with all of this - except you seem to be using discretionary funds to refer to reserve funds, since discretionary funds come from income like a job, especially in the case of your example fo the guy losing his job at age 40, less than half way through his building up of his bitcoin portfolio.
this whole concept is all about developing the habit or attitude to make provision of emergency and reserve fund in case problem comes so that selling bitcoin shouldn't be the first thing on your mind, because you have a long term plan and the sole purpose of why you need bitcoin investment at the first place is not to sell too quickly but for retirement purpose.
I agree with this too. A lot of guys have gotten themselves into less preferable situations when they had engaged in practices of selling too much of their bitcoin too soon, and then they end up with way fewer bitcoin than what they otherwise could have had built up. Hopefully, we can put cashflow management systems and practices in place so that we never have to sell any of our bitcoin at a time that is other than our complete choosing, and hopefully we are not selling any of our bitcoin until we have reached overaccumulation status.