I agree with you quite alright, but where I’m getting it confused is to the part you said long term investment is about portfolio growth because there’s a possibility that an investor can grow his portfolio within a period of one year or less, should that be the case then it still might be putting the person in the level of long term investor and this might go a long way to misleading newbies only to grow their portfolio within a short time and they might feel fulfilled that they’ve invested in long term and might want to sell off having noticed a little profit in their portfolio.
It shouldn't confuse anyone because everyone has his own goal on the quantity of bitcoin that they plan to accumulate. However, if a new investor is able to accumulate 1btc because that is his bitcoin target within one year or below, what prevents him from continuing to add more bitcoin to his portfolio in order for him to reach over accumulation status. If the person is aged or have health issues, that's not a problem but if you are still young and vibrant below 65 years of age, you should not start selling because you have reached your bitcoin target within one year. It's better to continue holdi and increase your bitcoin stash.
Reasonable point, of not letting a specific target stop someone from continuing their journey, because truth is, targets are only few steps, not destinations.. Hitting 1 BTC should not mean the end of accumulation, it should mean you have broken into a stronger level of conviction.. The way I see it, if you are still young and capable, why stop when you can build a bigger stack for the future? Health or age can limit someones ability to accumulate, yes, but as long as you have strength, time, and income on your side, compounding more BTC gives you that extra confidence for whatever the future brings. Bitcoin is still early, and that means there is still so much potential room for growth that many of us underestimate..
However, if you don't feel like increasing your bitcoin stash anymore, you don't need to sell your bitcoin but hodli for long term because that's when you will benefit more from your bitcoin portfolio due to the compounding profit overtime. Don't forget that the longer you hodli the better for you because history has proven that bitcoin price increases overtime and since bitcoin is in her early stage, you don't need to sell your hodlings. What will you use the fiat from your bitcoin sales to do.
On this, I think it is an important reminder that accumulation is not about selling the moment you feel satisfied… Most people don’t realize that satisfaction with Bitcoin is a moving target because price has not even scratched the surface…. You mentioned compounding, and I agree with that fully, because Bitcoin compounding is not like traditional finance where percentages add up in a way we can predict.. For BTC, the it is way different and promising, talking about global trust, and scarcity.. That is why even if someone does not feel like adding more, holding still remains the smartest decision… When you ask, what will you use the fiat for if you sell, good question, because most times we end up spending that fiat on depreciating things, while the coin we sold keeps appreciating.. This is a mistake some old investors made..
Bitcoin is one of the best investments for the future so try and make holding bitcoin part of you because that's the key to success and financial upliftment in future. If you sell too many coins too soon for the reason of profit, you will regret it later when bitcoin price will be x3 or more of the price that you sold yours.
What if you were able to reach your bitcoin target within one year and bitcoin price at that moment is below your entry point, will you sell? This is the major reason why you should invest and hodli for long term to avoid losses. Profit shouldn't be your focus in the beginning, because your profit is not yet ripe for plucking.
Hmm, solid question,
what if someone reaches their goal but the market is sitting below entry? The true is, this is where emotional maturity comes in. Selling at that stage would simply mean a loss, which means the target itself did not serve its purpose.. That is why I see profit taking in Bitcoin as something that should come later, when the market has proven itself in many cycles, not just months or a single year.. Like you said, profits are not gotten in the beginning, and it takes patience to let them mature.. People who chase quick satisfaction would later regret when price shoots 3x, 5x, 10x above the level they sold..