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I can't agree more, and I am one of those people who will still regret not buying enough Bitcoin or starting to buy it late. There is a percentage of my Bitcoin that I liquidated early, and they are all painful now. As they say, we learn by our mistakes, but this one seems bitter, even though I earn from other aspects of earning. Regardless, imagine me starting to buy Bitcoin when I know it is below $500 and keep it forever? It would have been a fortune for me now, and will continue to add to my fortune because Bitcoin is progressive. Well, I've made the change now, I've been buying and buying, and I hope in 2050, I can sing more praises instead of lamenting the past missed opportunities.
So?
That means that you have converted from a bitcoin trader into a bitcoin investor?
Perhaps? perhaps?
Many of us likely realize that it is good to learn from our mistakes and figure out some balance that works for us in regards to our investing and our cashflow management practices, since many times it can be difficult to get outside of a traders mentality and really start to employ investor techniques and/or strategies.
I remember not very long ago, you were proclaiming that there were ways to outperform investors by knowing when to skim off the top and to play the waves.. so maybe you have come to realize that those strategies are especially risky for guys still in their accumulation phase because they end up selling too many BTC too soon, when they probably should have had just stuck with buying rather than fucking around thinking that they would be able to buy back cheaper when that might not end up working out.
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Yeah you are right JJG he also did have a relatively bad (not so good) BTC purchase towards the top of the 2017 market, this may be as a result of not having a backup funds, an investor may be so determined and consistent with his or her investment but along the line for some time or season stop accumulating because he or she wants to solve or settle an emergency that came up, but with a backup funds you can solve your emergency without it obstructing your accumulation process.
I was describing a guy who started investing into bitcoin at the top of the market and he still ended up doing well because he kept buying bitcoin. My point really did not have much of anything to do with keeping backup funds, which I would have had presumed that any guy who is investing aggressively into bitcoin will already have back up funds in place.
Sir I understand very well that you where just giving a description and the reason I mentioned backup funds was when you mentioned in your description that the guy had a relatively bad (not so good) BTC purchase towards the top of the 2017 market, and from my own thought one of the things that can slow you down in your Bitcoin investment journey is when you don't have backup funds and you are now faced with emergency issue, it can relatively lead you to have a bad (not so good) Bitcoin purchase for that period.
Yeah but, I was not talking about the same kind of "bad." Anyone could come to an investment, such as bitcoin, and reasonably decide to invest a lot from the beginning, and their beginning ends up being the top of that particular cycle (or that price wave), and so they will end up having a lot of BTC that were purchased at a price that is higher than the current price and mean that their BTC holdings are in the negative.
At the same time, the mere fact that they bought a lot of bitcoin at the top does not mean that they were spending beyond their means or beyond their discretionary income and they might have even sold some other asset (such as a house) and used the proceeds to buy bitcoin. .So they are using money that they can afford to lose, but their investment into bitcoin might end up in the negative for 3-4 years or even longer.. yet part of my post was to show that even someone who started in such a situation, they likely would end up being advantaged by ongoingly continuing to buy bitcoin, even though it is not guaranteed to work in their advantage that their ongoing investment into bitcoin does not guarantee that bitcoin is going to end up going up in price, so hopefully guys continue to invest with money that they can afford to lose.. and sure, they are investing into bitcoin because they believe that bitcoin is a good place to put money, as compared with other places that they might end up putting money.
Sir JJG you may see it that an investor investing aggressively into bitcoin will already have back up funds in place but there are some investor especially newbies who are eager to grow quick may start accumulating aggressively without knowing they need a backup funds in other to prevent them from getting into a financial set back that will lead to them dipping hands into there Bitcoin investment there by slowing down there investment.
Of course that is true.. But you are still making a point that is quite different from the point that I was making and the thing that I was talking about... even though when you responded, you seemed to suggest that you were responding to the situation that I was talking about.
Sir JJG there are somethings that is normal for you and to you an investor should apply that but honestly some investor don't know or have that knowledge.
I don't expect investors to have the same knowledge as me, especially if they are newbie investors (there are also different types of newbies .. newbies to investing and/or newbies to bitcoin), so of course, even within bitcoin threads, the direction of our conversations can go in a variety of ways and still be within the topic of discussion, which means that sometimes we may well be talking about a variety of ideas (or sub-ideas) within the same thread... and within that context, I keep repeating that you brought up a point that is different from the point that I was attempting to outline in terms of an example of a guy who might start out with a large investment into bitcoin and consider how to proceed in spite of his having had started in that kind of a way.. so yeah, my example was meant to show how that might have had played out for a guy who started at or near one of the two 2021 price tops.
However, emergency fund is not mandatory for everyone.
That is a strange statement, and I find it difficult to understand how anyone could consider themselves as an investor in bitcoin without some kind of emergency funds (or back up funds) - and surely there could be some cases in which discretionary income is guaranteed.. and so those funds may well be serving as emergency funds.
Essentially, it makes no sense to me to proclaim that emergency funds are not mandatory... especially if we are talking in terms of investing rather than gambling.. Sure, if you are gambling then there are a lot of things that you can do that no rational person would do, absent some dire circumstances in which they might not have a choice.