Guys can invest up to 100% of their discretionary income if they choose, and I agree with you that they might be over doing it, but if they have emergency fujnds and reserves in place (in case they make any mistakes about their expenses) then there is nothing wrong with being as aggressive as they can be without over doing it.
5% to 25% of discretionary funds invested in bitcoin is pretty whimpy... even though that is a choice.
Many times folks will talk about investing 5% to 25% of their total income.. so if we are talking about total income we might be coming to a different number, and of course, measuring from the discretionary income is more precise in terms of figuring out the extent to which we might be considering our approach to be aggressive or whimpy.
Sometimes we want to know how much we are investing in terms of our income or in terms of our expenses in order to potentially estimate how much money we might need (want) in order to get to fuck you status or to be able to have a target income level for our sustainable withdrawal practices (to figure out the amount).. which might relate to the standard of living that we already have or perhaps some standard of living that we might aspire to, and sometimes guys can become unrealistic or maybe even overly abstract in regards to their expectations.. which then makes it harder to achieve goals that have not been established with any kind of grounding and/or basis.
Fair enough, I can agree with what you said..but I think still believe many folks throw around 100% of their discretionary income without a proper understanding of how disciplined they need to be over time. And yeah, if they got their basic need covered, and most importantly their emergency funds, savings etc. then putting all discretionary income wont be wrong. I can tell you that most folks dont even know what is discretionary income, they are only pretending to investing aggressively not minding the dangers of not settling every other thing when they get their income.
Again, investing 5% to 25% of discretionary income might seem like they are playing it safe but if they are measuring that percentage to the actual income and not the discretionary income (money left after the basics), the its a different context altogether. The truth is to accumulate 1 BTC is not so easy especially for people who are not rich. While most investors needs a new game plan so they dont regret why they invested aggressively in the short term destroying their long term stability. Above all, they should know the difference between conviction and recklessness. Both may look similar but one can kill the investment totally.