74% of Bitcoin is now in the hands of long-term holders, which is the highest in the last 15 years. No one is selling. This is actually very pleasing to hear and encouraging for those of us who have been involved in long-term investments for a long time and we have been discussing this topic here for a long time. We will definitely see a good portfolio in our wallets in the future.
And if the number of holders is low, then there is a big risk here because they may be forced to sell it in case of special need.
For example-
▫️ If the holder is a country and if there is an emergency in that country, then it will have to sell Bitcoin to cope with the economic pressure.
▫️ Again, if the holder is a company, then if the company's liquidity decreases, it may need to sell Bitcoin to maintain its financial balance.
▫️ And if the holder is an individual, then at some point he may lose his Bitcoins due to a wrong decision.
So if the number of holders is high, no single country, company or individual will be able to have a big impact on the pricing of Bitcoin.
Number of holders ∝ Risk
I get that we all Support DCAing as the best method to accumulate bitcoin which it is, but buying the dip is not all ruled out cause it’s bad, it’s also a good buying strategy where it’s bad is when an investor instead of buying regularly decides to save up the money in order to buy lump sum at the dip thereby losing out on a lot of opportunities where he could have accumulated more.
I also want you to correct your statement or impression in bold letters; I don’t see how buying the dip will make you lose money, unless you’re going in for short term, even at that I don’t think any investor who buys the dip will want to sell when price is below what he buys since the goal of buying the dip in the first place is so they can buy cheaper and sell high.
I also want you to correct your statement or impression in bold letters; I don’t see how buying the dip will make you lose money, unless you’re going in for short term, even at that I don’t think any investor who buys the dip will want to sell when price is below what he buys since the goal of buying the dip in the first place is so they can buy cheaper and sell high.
Can you tell me what DIP is? When Bitcoin dropped from $60,000 to around $15,000, did people call it DIP?
They thought it would drop further, so they waited longer. When the price rose, they couldn't buy anymore. They might wait again, and when they did buy, they would never actually buy. No matter how much the price went to DIP, they would think there was more DIP waiting ahead.
We need to avoid the mentality of buying DIP by accumulating money [inflation reduces the reserve of fiat currency] and create a mentality of buying Bitcoin in the DCA method and be ready to buy as aggressively as possible when the price goes to DIP.