If our investment doubles before our time limit ends, we can withdraw some money from our investment and enjoy it. But even if our time limit ends, selling our entire holdings would not be the right decision. Because I think the price of Bitcoin is still in its infancy. The price of Bitcoin can increase a lot in the future. So if you sell your entire holdings because your time limit has expired, you may regret it later. So it would be best to withdraw the amount you need and keep the rest of the holdings.
I don't know if this your idea of taking profits before reaching your bitcoin goal because you see that your bitcoin portfolio has doubled. If you take profits, it will affect the growth of your portfolio to a better height compared to when you didn't take profit. Imagine that profits that you took will depreciates your portfolio and the profits should have generated more profits overtime.
If you start taking profits because your bitcoin portfolio has doubled from the initial amount that you put in, it can be tempting and before you know it, you might take profits again the second time killing your long-term accumulation goal and will delay you from reaching your bitcoin target. Let's not be profit cautious but focus on reaching our bitcoin goal since the profit is still there.
You are correct. .if you think about people who might have lump sum invested into bitcoin (or front loaded their bitcoin investment) in late 2022 and much of 2023, they might have had been able to accumulate a lot of bitcoin for average prices at or below $27k.. so then they might start to feel good that their bitcoin investment doubled and then it doubled again... so from $27k to $54k to $108k, and so they may well be feeling quite good and wanting to cash out, even if they may well still be in their BTC accumulation stage and maybe they have not even invested a whole year of their income into bitcoin yet, so they have a long way to go in order to get to their target, yet they have a good stash.
I also show the power of compounding for a guy who might have had been in bitcoin since 2015 when BTC prices were $250.. and so that guy would have 8 to 9 doublings .. so the doublings become more and more powerful with the passage of time... which shows a kind of exponential nature that comes through allowing time to pass and not getting overly eager to take too many profits too soon.
[edited out]
In order to attain success in Bitcoin investing, one must have to adopt a mindset that prioritizes accumulation and long term growth rather than shirt term profit taking as this is the key to reaching over accumulation status. When investors direct their focus on building a substantial Bitcoin portfolio, they'll be able to attain a level where they'll be able to sustain themselves through regular withdrawals, whether it's time based or price based. At this point, withdrawing from their Bitcoin stash would no longer affect the investments/portfolio as they have already gotten to a state of overaccumulation and are no longer focusing on accumulating but managing and preserving their portfolio.
It becomes easier for investors to shift their focus from profit driven decision making to a more sustainable approach once they've experience one or two cycles because at this point, they're believed to be better equipped to make more informed decisions. By sticking to this mindset, they put themselves in a much better position to continue accumulating Bitcoin until they've reached a state that their Bitcoin portfolio is sufficient enough to take care of their needs and/or even exceed their requirements.
At this particular point, they'll have a more straightforward calculation, which is, how much BTC would they need to accumulate that'll be able to generate them a particular income stream? And by diverting their attention and decision making from profit making and loss consideration, investors put themselves in a much better position to adopt a more objective approach towards effectively managing their Bitcoin portfolio.
Even a guy with $1k average cost per bitcoin went from being in the red in 2015 and 2016 but then in 2017 he would have went all the way up to 19x profits and then dropped back down to only 4x profits in 2018, but then in 2021 he would have gone up to 69x profits and dropped back down to 16x to 20x profits and then now he would be 116x profits, so there is likely more stress when the profit levels are lower, but one the profit levels reach higher numbers, then they don't become as big of a deal if they might change because there ends up being a lot of cushion and less needs to worry about if profits are going up or down. Sure when the profit cushion becomes very large, guys might still try to make withdrawals when profits are higher, but they are not as much motivated by profits since they have been through the more difficult periods that were in the earlier years.