Oddbean new post about login | logout FWIW... My general recommendation for all who are new to buying #bitcoin is to dollar cost average for a minimum period of ten years, regardless of price. Don't sell during this time period, unless you are forced to do so. Having a similar mindset to traditional retirement investing (versus day trading) is quite helpful. After ten years, reassess the original plan and your options. Bitcoin has a way of speeding your journey to financial independence!
Couldn't agree more with this concept. I usually tell people to start buying asap, hold on for at least one bitcoin cycle, then reevaluate. Ten years is obviously preferred but I think that's a big of a reach for people who are still in the fiat (HTP) mindset. nostr:nevent1qqs9n7uqhan7cukk2cuwullhv6k2phum24ce4yk6f33qu2sw43a9azgpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsyg9hn9kps0srdhe8sq55twqthhytp06ewxmxyx5xhu6knsejz9ls05psgqqqqqqs04thyx
it's nice to preach to the choir here, but in reality that is a very poor sales pitch considering the risks involved. in fact new people (with low information) will act (rationally from their perspective) and loto-ticket a lump sum. The DCA stuff is for long-term convicted savings. A new person will not follow that advice, neither should they. They can't differentiate well BTC from ETH from penny stocks. You could give the same pitch for any asset and it would be, in most cases, very dumb to commit long term cash-flows to it. Fwiw
Well said. I've been suggesting to plan over 2 btc cycles, so 8 years (less years for those who happened to catch near the bottom of the first cycle when they started this program). The idea is that by the time you go to spend btc as part of your monthly costs because you have no more fiat left, you are using the units you first purchased which are quite likely worth more than when you first bought them. There's a bit more math at that point to ensure not overspending than the average net worth growth (through the chaotic but softening volatility price changes btc goes through), but it's a pretty simple plan to start. So although I can understand @RamenCoffee concern with his comment, the idea is not to buy it as an investment, but understand that DCA is a strategy towards moving out of fiat as a reserve (this can be expanded to include investments in organizations that do not use btc as their reserve).