People who consider bitcoin to be too expensive don't understand bitcoin, and even if they end up buying on the dip, they will end up selling way too much too soon.
Yes, that is true. Seen bitcoin expensive and lucky to seen and buy dip has turned some people into traders now because, as they were lucky enough to buy Bitcoin when the price dipped, they will try to be smart and sell it once they see the Bitcoin price increase a little. They try to time the market again, attempting to buy deep, but from there, it possible that the price of Bitcoin won't come down to the price they set to buy back and some people are down still not able to buy bitcoin back again as the price continue to be increasing. In fact, this is the idea that has made some investors unable to hold for the long term, because their mindset isn't clear regarding their Bitcoin investment. They think that Bitcoin will not go higher much again, as they have seen Bitcoin become so expensive. And that is a wrong thought, because it's very possible for Bitcoin to reach $500K in the future let me just predict the price a bit. But as for me, I know that Bitcoin will go higher than that.
Majority of bitcoin merchants who wait and buy strictly on dips are bitcoin traders that disguise as holders maybe because of unfavorable market which lingered a little there by making them hold further. A bitcoin investor who aims at long-term holding and also having an over accumulation target will not wait for dips. They utilise every moment of available discretionary income to acquire more bitcoin and they have a working DCA strategy for continuous accumulation.
Buying the Dip to sell when a person feels the market is favourable can easily Keep you completely out of bitcoin investment when it gives you the options of either buying back at higher prices or quitting bitcoin investment completely. It is not wise to see the Dip as the only time to invest because you seem to take all your decisions on FOMO basis which would land you into regrets later.
People who consider bitcoin to be too expensive don't understand bitcoin, and even if they end up buying on the dip, they will end up selling way too much too soon.
I think this happens more to newbies. Maybe after getting an idea about Bitcoin, they think the current price is expensive after seeing the past price of Bitcoin. Actually, Bitcoin has never been expensive, Bitcoin has not been expensive in the past and Bitcoin is not expensive in the present either, because the price of Bitcoin will not remain stable here, but rather the price of Bitcoin will increase a lot over time. Now those who think Bitcoin is expensive should gain proper knowledge about Bitcoin, because if they do not have proper knowledge, they will not consider Bitcoin trustworthy. You have to invest in Bitcoin with trust and hold it.
Not only newbies have this mindset of not buying bitcoin at the bull run and say that's expensive. Even old forum members also have this mindset because they are more focused on buying and the bear market and sell at the bull run. Such people are only traders and will regret their actions in future when they will be left with very little bitcoin and miss out from the compounding value of their portfolio. They fail to understand that the bitcoin that you bought when the price was $17k in 2022, cannot be bought for such amount again after they sell it. You buy bitcoin for higher amount overtime because the price keeps on increasing overtime.
It's really a wrong mindset to be playing such a game with your bitcoin instead of just constantly continue buying ongoingly for 4-10 years and above for your future. This is why you need to have a long-term investment mindset in the beginning of your bitcoin investment and set a bitcoin target to accumulate.
I totally agree with you, when it comes to buying of Bitcoin, that it is not only newbies that has the mindset of not buying Bitcoin at the bull run, that it can be old members in the forum and it will very advisable if we eventually analyze the buying of Bitcoin in bull run to be on self discipline not by newbies refusing to buy Bitcoin because it can be an investors that has been in this forum that doesn't have self discipline and patience in building up their Bitcoin portfolio up to 4-10years, rather focusing their mindset in the market price because of the intention of trading in a short term just to satisfied their curiosity of target of making quick money without them knowing that they are losing and wasting money that they could have be more profitable if actually their focus was based on accumulating in a longer term.
Newbies were introduced by old members and they receive guidance from them. When an old forum member who doesn't have the mindset of buying to hold introduces a newbie to the forum, he leaves the newbie with a conflicting opinion like; "It is good if you can be buying bitcoin to hold for a very long time at least 4 to 10 years but for me, I do target dip and sell shortly when there's price increase". This automatically affects the thinking pattern of the newbie who now sees dip as the best buy-time while also looking up to good market period to sell off immediately believing he would also make profits.
Changing the narrative of newbies would start with changing the narrative of old members because a Bitcoin Trader recruits more bitcoin traders while a bitcoin investor tries everything possible to recruit more bitcoin investors. Dips don't happen always neither does it announce it's about to happen. This means that a person may wait until eternity without seeing his choice of dip happen or it may happen when he has no money to acquire bitcoin which may lead him into borrowing to invest or investing with emergency funds which is not a good option and exposes his bitcoin to premature sales.
Sure, Bitcoin was cheap a few years ago, and many people overlooked it because they didn't think it was worth their money to take the risks, but some had the opportunity to buy when it was around $10k or $20k. However, we can see rich people continue to buy more and more of it. And some people feel that Bitcoin can be challenging for them to buy. If we wait too long, the price will get higher, which will make it difficult for us to buy even a small. Some people who have yet to buy should understand that if they do not do it now, they may miss the opportunity, like some people lost it before 2020 and 2022. Many people expected the price to fall, but the price continued to increase.
It’s best to start now, even if it is just a small amount. We don't need to buy everything at once, you may buy a little when you have the money. It's just a matter of starting somewhere, because some people will not start at all, and the future may be more difficult. When Bitcoin becomes too expensive, we may not be able to buy it again. So, earlier is better, even if it is small, rather than waiting and regretting later.
Everyone who was involved in such decisive mistakes now stand to regret why they did so of which even many of us fell to that level too. Sometimes we play too safe and loose at the end. Most people who knew about bitcoin earlier thought it was all scam while others feared the stigmatisation from the government who tried to fight it. So you may not right blame anyone who didn't invest earlier before now. We're only getting much involved now because we have seen that even governments are gradually drawing to the side of bitcoin and even making plans to hold some bitcoin reserves. Some chances we miss are humans but realising our mistakes makes us smart too.
[edited out]
It's probably just greed, and a little feeling of FOMO when I read all of the bullish information being posted on X. Plus as a personal "rule", if I have more than six to seven months worth of monthly expenses saved, the rest I should invest. But everything I like, like Bitcoin and Gold, looks "expensive" now. The only strategy to do is DCA during the current market condition.
I don't know how gold is relevant.. except someone who is lost in regards to the value of bitcoin, and surely at most, you might hold up to 10% of the size of your bitcoin investment int gold and even 10% is probably too much.
Surely, we have the idea of ongoingly investing into bitcoin and perhaps keeping up to 3 months of expenses in an emergency fund... So if you have money that is beyond 3 months of expenses, then I would consider them to be reserve funds, which means that you can use them for whatever you like, including for emergency purposes if you were to have an actual emergency situation come about.
Talking about leaving 10 percent of your bitcoin in gold is a good idea but then do you also consider your stage of accumulation? Some beginners don't have patience to achieve an over accumulation in bitcoin investment before planning for diversification which gold would be a good option to go into with your 10% bitcoin investment, instead they tend to invest alongside gold which also stresses their finances. Again, having 3 months of your income as emergency funds alone may not be the best option as everyone's income differ largely but everyone is exposed to nearly equal emergency situation which is why continuous accumulation of emergency funds is also advised especially for low income Earners. A person who earns $150 monthly has low emergency strength compared to a person that earns $800 monthly. So this 3 months income emergency funds is not to be fixed. Reserved funds which also serves as backup funds when in excess can be introduced into bitcoin at DIPs while maintaining your DCA approach continuously.
So surely, if the main reason that you are holding an extra 3-4 months of cash is potentially buy dips with that extra, then that surely seems to be too much cash to be holding to for the purpose of buying dips that might not happen.
Yea sure, dips don't happen always neither does it happen at our own time. So holding up such amount of money would just expose the money to inflation without any return. Holding up to 3 to 4 months of income is such high to play around with.
Of course if you had not been buying bitcoin for the past year or more, then of course, your cash reserves would be building up - and Many of us likely realize that even a guy who might be saving up 15% of his income, it may well take him a couple of years just to build up 3 months of his expenses in cash (since 3 months is 25% of a year.. which would mean that if a guy were to be holding back 25% of his income for emergency/reserve funds, it would still take him a whole year to get to 3 months). Unless there is any particular reason to be holding such cash it seems to be problematic to be holding that much cash, since by the time you get to 6 months or more, your cash might be losing value nearly as fast as you are able to add to it.. which is part of the problem with ongoing debasement of the dollar and other fiat currencies..
You're very correct sir. The rate of devaluation amount the local fiats is becoming alarming and stalling up fiats could just be a waste of time and resources. It use to be other fiats to dollar until dollar got a digital contender which is the bitcoin. I remember years back when in my locale, our best investment comes in buying dollars to hold as our fiat kept loosing value to dollar. This has been overtaken by bitcoin which now exposed the weakness of dollar as other fiat currencies. Should we save up dollars, even if it gains among other local currencies, it would surely loose against bitcoin and this is one big advantage of bitcoin over all of them.