Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Tungbulu
on 01/06/2025, 18:04:24 UTC
⭐ Merited by JayJuanGee (1)
[edited out]
You cannot say when the right season will be ready, that is why it is important for you to buy Bitcoin regularly, because if you invest in Bitcoin regularly on a weekly basis, you will definitely be able to make a suitable investment because you will be able to buy deep constantly. If you can invest in Bitcoin regularly, then you will definitely be able to do your market research and buy at any moment because when you calculate the average, your purchase price will definitely decrease.
The DCA method is economical because the more you buy, the more your purchase price will decrease because you will be buying dip constantly. And through this DCA method, you will be able to hold Bitcoin for a long time.
The point is DCA does not bring you cheaper prices, even though it may well be able to allow you to invest into bitcoin in a way that would be the best that you are able to do since many people are not ready, willing or able to lump sum invest into bitcoin, so the better way for them to accommodate their BTC buys to their finances and/or psychology is to DCA buy into bitcoin.
✂️✂️✂️
Yeah, but isn't the DCA strategy allowing guys to tailor their BTC accumulation to their own cashflow situation... so even though we are getting BTC in the process and maybe we are keeping track of how much money we put into BTC and how many BTC we have and how that is valuated, our main advantage in DCA buying seems to revolve around our abilities to tailor our weekly (or whatever other period of buys) to our own cashflows... so even though monitoring our BTC costs and quantities and likely seeing it grow, we might not really get into any position to change our level of BTC accumulation and/or aggressiveness in regards to our bitcoin until after a whole cycle or maybe even two cycles.  Sure, even after one whole cycle, if a guy had been accumulating bitcoin by investing 15% or more of his income into bitcoin, he may well start to see that he is getting towards having 60% or more of his income invested into bitcoin, and there could some assessment regarding the extent to which the bitcoin price might have changed during that time, too... and surely also any guy who is able to front load his bitcoin investment and even get a whole year's income or more into bitcoin within the first whole cycle, then he also might find himself at a higher level of accumulation in which he is also considering the size of his BTC stash and how that might relate to any additional bitcoin buys that he might make into the future and whether he might consider either moving away from DCA and/or changing the level of his aggressiveness in terms of his bitcoin buys.
✂️✂️✂️

I think that we are saying very similar things, yet you seem to be saying some of it differently from me.

I think that we monitor our cost per BTC and our overall profits and how many bitcoin we have on an ongoing basis, yet those kinds of measures are likely not necessary to motivate us in the beginning of our bitcoin accumulation journey in terms of our ongoing buying behaviors in which we are trying to make sure that our cashflows are in such a state that we are able to invest into bitcoin as aggressively as our cashflow management allows us to do....

Sure the longer that we are accumulating bitcoin then the size of our overall BTC stash may well influence the extent to which we might modify our approach.. yet i still doubt that the BTC price is motivating us as much as the size of our BTC stash, yet sure it can be a combination of both, so it can be difficult to really say what everyone is doing or should be doing, even though we likely realize that in the very beginning, each of us likely should be buying at any price perhaps for a whole cycle and maybe even up to two whole cycles of having that kind of mostly price insensitive focus.

Yet, at the same time, there is frequently going to be some kind of motivation to be able to buy more BTC (sats) with the same quantity of dollars, whether the buys are weekly or some other reasonable time interval.

It still seems to me that a more strict DCA approach will end up allowing us to tailor our quantity of BTC buys to our cashflows and not to the BTC price, and sure after several years, perhaps a cycle or two of ongoing accumulation of bitcoin, then our BTC holdings end up being in profits largely based on the inclination of the BTC price to go up and down, yet overall the BTC price is generally tending to go up (or at least the odds of up continue to be in its favor based on the decentralized digital scarcity of bitcoin's design and implementation).
I believe we are actually on the same page, I'm simply just looking at it from slightly different angles. I totally agree with you that cash flow management is key when starting any Bitcoin accumulation journey, and some investors are pretty much concentrated on accumulating as aggressively as possible within their means. And when it also comes to monitoring costs and profits, it's more of an ongoing thing, it's also agreeable that the actual size of one's Bitcoin holdings can serve as a major motivation in the long run.

While it's also true that Bitcoin's price does actually play a role, but when we look at it carefully, we'll realize that it's not the major driver. There are investors who are much more focused on just accumulating as much Bitcoin as they can, while there are also investors who often get caught up in the price action. An investor's desire to acquire more sats with the same amount of dollars can actually be considered to be a natural motivator, but engaging in a strict DCA strategy can actually help the investor keep things in check and tied to cash flow, instead of the price volatility.

In the long run, we tend to realize that the profits that comes from Bitcoin holdings can actually become quite a big factor, and no matter how hard we may try, it'll still be pretty hard to try to ignore the overall trend of the price actually going up you know. We can also identify Decentralized digital scarcity as quite a powerful drive of the asset's value and there's every possibility of this turning out to positively influence the price too.
In the long run, we get to understand that it's just all about finding a balance between accumulating Bitcoin and simultaneously managing one's cash flow. And a consistent and disciplined DCA strategy can actually be the easiest way to achieve this.