When we are in the midst of building our bitcoin holdings it can be difficult to know if we are doing the right thing or not, and you can imagine that poor people are likely not used to accumulating so much wealth, and so they might already start to conclude that they have enough or more than enough bitcoin and they have not even hardly accumulated 25% of their annual income into bicoin, yet it still seems like a lot of money for them to have so much in one place, and they are not used to having had accumulated so much wealth in their whole life, and it is ONLY 25% of their annual income, and maybe it took them 2 or 3 years to get to that level and they feel really rich.. even though it would likely be better for them to keep accumulating until they have invested a whole year or more in to bitcoin.. .and no I cannot really determine for someone else how much is enough or more than enough.
I do know that my standards are different right now as compared to what they had been in 2014 and 2015 when I was starting to come to the conclusion that I had accumulated enough or more than enough bitcoin.
Snip
Initially the clear goals might be merely to get into a habit of buying bitcoin every week and solidifying cashflow management systems and practices... so there could be stages that the bitcoin investment grows more and the cashflow management grows stronger, yet it can be uncertain regarding how long it is going to take to get 1 years income invested into bitcoin for example. . and yeah if it can be figured that a person is investing around 10% of his income into bitcoin, then it may well take right around 10 years to get to 1 years income invested into bitcoin.
I will like to add up in this conversation, Surely I understand your point or the point your trying to make in regards to how long it might take to get invested 1 year income into Bitcoin in 10years with just investing %10. Well it depends on the case scenario, Let's say for example if the person in question has a steady source of income that generate $1k per month and has a good discretion fund after all settlement. He might be investing $50 in a week and right around $200 to $300 in a month, making it about %20 to %30 invested in a month. So surely if the source of income is a steady one, and a good financial management is practiced, of course in a year that person can be able to get invested%30 of his total income into Bitcoin and also it may well take around 10 years to get 3yeaars income invested into Bitcoin. But I surely understand that Bitcoin investment is not usually straight forward investment but if the person in question don't have much responsibility and has a good Cash flow managemet consistently, then He can do better.
Of course if a person is investing around 30% of his income into bitcoin, then it will take him right around 3.33 years to get to having one year's income invested into bitcoin.
When we make examples, we will frequently attempt to simplify them so that we don't necessarily get caught in the weeds or to make the examples overly confusing - and at the same time, if we make examples that have too many changing variables, then it might be difficult to figure out the point that is being attempted to be made...
And, also the implication that income and/or expenses can change, and there might even be inconsistency through the whole year due to factors that might be somewhat outside of the control of the bitcoin investor, and even I have frequently suggested that guys need to adjust their level of aggressiveness in regards to any changes that they have in their income and/or expenses, yet at the same time, they have discretion regarding how aggressive that they might be or even if they might have other things that they consider to be priorities that they are also trying to weave into their bitcoin investment allocation choices.
It is quite common that normal people struggle to even invest or save around 10% per year, so there can be a decently good presumption that aiming for 10% may well be a good starting target, and of course if a person is ready, willing and able to invest/save at higher rates, then maybe they haver some level of fortune to be in such a position to be able to save/invest at higher than 10% rates.
And, on the other side of the spectrum, there surely are guys who may well struggle to get up to 5% of their income invested and/or saved, so they might have to try to figured out ways, if possible to increase their discretionary income so that they are able to have abilities to invest/save more than their relatively low rate, if it happens to be something like 5% or lower, and even 10% might be too low in some instances where a person might be wanting to front load their bitcoin investment and to more value into bitcoin at a faster rate.
Except for the fact that the person in question has much responsibility and not having a good cash flow managemet that he can invest only 1 Year income in 10years Time. But I'm making an emphasis on when there is a possibility of investing progressively without any factor of distruction.
For sure, there is nothing wrong with trying to figure out ways to invest higher levels of your income in bitcoin, especially if you are capable of accomplishing such. Each guy has to figure out those kinds of matter, and surely there are guys who might dedicate large amounts of their income towards investing in bitcoin, and they might have capabilities to earn more and/or to spend less.. .so they surely would have better chances in getting to a place of overaccumulation in a quicker way, and surely anyone has to also be careful to not overdo it and to cause his own situation that might cause him to have to sell bitcoin at a time that is not at his own choosing.
There could be some rare situations in which guys are able to get to overaccumulation status in less than 4 years, yet I imagine that the majority of those cases are going to be based on lump sum investing rather than merely investing from discretionary income as it comes in.
There could be times where the person is able to invest more aggressively (or a higher percent) , but then there might be other times that the person has to cut back the amount invested because income is shrinking and/or expenses are going up.. in other words discretionary income is shrinking.
That's true, and I agree that there could be times when discretion shrinks or responsibility may pile up and slowing down our investment. but in all, if the investor in question can be investing aggressively when there is a good cash flow or when discretion increases
Then he may well cover up in the time of discretion shrinkage, and that will automatically meet up the whimpy times. So all i am saying is that no matter how aggressive or how whimpy an investor may be, if he maintain a good investment approach, despite the fact that hard times may come, he may well do better in regards of 10 years time.
I don't disagree with you, yet it is difficult to know exactly how the next 10 years are going to play out. Surely we can look at the past 10 years, and we can see that the earlier a guy got into bitcoin and the more aggressive that he was, then he likely would have had ended up getting to over accumulation status faster, and he might even be able to either live off bitcoin now or to have bitcoin available to supplement other income that he has, whether he is getting that income through work or if he might have other investments, and surely some guys may have goals to get to a point that either they don't have to work or they can be extremely selective to their own tastes in regards to the kinds of work that they might choose to do.
In the sense that he way not only invest 1 year of his income into Bitcoin in 10years Time but at least 2 and half years or 3. Because from your analysis you presume to be investing only %10 of income every month forgetting that a person may well invest %20 Also.
I was not presuming what anyone might choose to invest, yet I tend to like to use 10% as a good starting example in order that guys might attempt to be realistic with a starting point that they may well be able to achieve. And, anyone who is a beginner into bitcoin may well choose to not start in any kind of an overly aggressive way, and they may choose to be moderate within what they believe is reasonable for their circumstances... I am not going to presume that guys can invest 15%, 25%, 35% or any other percentage amount, even though surely I have given some past examples that have used those higher levels of bitcoin accumulation, yet I also presume that guys who try to invest in bitcoin at rates that are higher than 20% or 25% are tending to already be quite convinced about bitcoin as a strong investment.
Furthermore since 2020, I have been recommending beginners to bitcoin attempt to start out investing into bitcoin anywhere between 5% and 25% depending on their level of conviction about bitcoin, and of course people are free to go outside of my recommended range, and I am also presuming that guys are investing within their discretionary income too, and they are not investing with money that they need for expenses.
Prior to 2020, I was accustomed to recommend for beginners to consider to invest between 1% and 10% into bitcoin, and of course, I also considered both that guys could go beyond such recommendations and anyhow they are responsible for their own choices. since I am just giving my opinion and they can take my opinion or leave it... they are ultimately responsible for their own choices and/or their choices to not act.. which yeah, we know that bitcoin still has a pretty low level of investment into it.
Young people may be wanting to get job training and/or to attend university, so there could be some difficulties earning income during those times, and expenses might be high relative to income... and even if a person does not have questions about job skills, there can frequently be questions regarding what kind of work to do that will both al.low for personal satisfaction and decently sufficient pay... or some jobs also might be considered as temporary jobs...
Well people in this category can be treated differently knowing there own circumstances and how they can be affected by their difficulties of not having job or trying to get into higher institutions or there about, and wanting to also investing into Bitcoin. But as for those in labour market who have more opportunities, there cases are different or should be treated differently.
People still have to make choices in regards to whether they seek higher education or professional education, and they could even attempt to figure out ways to include something bitcoin-related in their studies, or maybe they choose something that is not bitcoin related, so those are choices, too. Once a person starts to know about bitcoin then he might start to think about his various professional options in ways that are different from how he had been thinking about his professional options prior to his having had gotten involved in learning about bitcoin.
[edited out]
It could also help to have directional goals, like prioritizing Bitcoin accumulation, as this could also potentially help to guide one's decisions. It's also important to weigh the costs and the benefits of every decision as this could really help on make more informed decisions, and this may sometimes involve adjusting your goals or approach overtime, and it's okay as long as you're finding a balance and making good progress towards your long term goals and objectives, even If that path isn't exactly what you had initially pictured from the beginning.
Let's say a relatively young guy in his mid 20s hears about bitcoin, and he starts to work towards accumulating bitcoin, and maybe he is working and attending some courses at the same time. So maybe he also has goals to meet a woman and to make a family so he is dating, and perhaps during this whole process he finds a potential compatible companion, and maybe he tells the companion about his interest in bitcoin, yet in the meantime he continues to build his bitcoin stash and his relationship with a person who may or may not completely agree with his priorities, so the guy may well have decisions to make regarding the extent to which he wants to continue with his relationship with the woman or if he wants to seek another potentially compatible person, and surely relationships can affect our activities and even how we might end up spending decent portions of our waking hours.. so part of the time, energies and value factors that could go into bitcoin, but also needs to be shared in terms of balancing the building of a relationship. So yeah of course, we can have mating relationships and we can have work relationships, and maybe if we are entering into new relationships, then there might be decisions that need to be made, including with work we might be able to get a promotion, but we might not be able to get a promotion unless we jump through certain hoops, so we might question ourselves in regards to whether we want to jump through such hoops in order to potentially receive a promotion.