Thoughts on Bitcoin Investment Strategies

Lately, I've been feeling like I keep repeating myself trying to share my thoughts on BTC and how to manage a BTC portfolio. It's like no one really gets it. So I thought I'd make this thread to keep it clean, avoiding any annoying posts that don't contribute.

Let’s kick things off by talking about personal finances. Before you get into investing, you need to get a clear picture of your own financial situation, right? Like, knowing how much you can actually afford to put into Bitcoin is key. Don’t let perfectionism hold you back, but you have to have some clarity.

Accumulation, maintenance, and liquidation of BTC aren’t strict categories. They kind of blend together. When accumulating BTC, you should have some target like a certain dollar amount or percentage of your portfolio. It’s about setting those goals and working towards them.

I’ve been rethinking my price predictions for BTC. Trying to figure out when we’ll hit the peak this cycle and how high it might go. Some of my past posts cover this, looking back to previous highs and corrections. Just trying to make sense of the price movements.

There are other resources too like podcasts and threads from other users here that share insights into Bitcoin. It’s good to gather different perspectives and strategies.

I’m guessing this post might get deleted, but honestly, I think you have a fear of bear markets. Why? Bears and dips are opportunities, not reasons to panic or sell off. It’s when you should be buying more at lower prices. Embrace the dip!

Not ready to dive deep into your thoughts right now, but I think your response is valid. I’m still working on fleshing out my ideas. But hey, I appreciate the feedback, and I’ll check your post more thoroughly later.

Congrats on starting this topic! I feel like a lot of folks here are totally committed to crypto, ignoring traditional assets. I’m not one of those people, though. Back in 2017, I put a small portion of my portfolio into BTC just for fun. It was a gamble and not a huge deal.

Hoarding is my game. I still have the stash I started back in 2012. It’s all about accumulating more BTC at the best prices. Selling? Not really my style. If I’m regularly investing a percentage of my income, I’ll raise that if prices drop.

Thanks for this. I debated whether to create this thread for a while. Hopefully, I can clarify my points as I go along. It might get messy, but I’ll try to keep things organized.

My take isn’t about massive percentages. I sold some at around 45k, but I’m not dumping my stash. I aim to maximize tax-free selling while holding on to most of my assets.

Some responses don’t seem to match the approach of long-term holding. If you’ve been in the market since 2012, you should’ve seen great returns just by holding. Why would you want to sell too aggressively?

Admin note: I updated some of my posts to include my price predictions and timelines for BTC. Just trying to keep things current.

I was shocked reading this thread. So much valuable info! JayJuanGee really knows his stuff. I’d be surprised if he’s not an economics expert.

Great post! What other investment options do you think are smart right now? Trading can feel like gambling if you don’t know what you’re doing, but investing in solid companies or gold isn’t gambling at all.

Selling should be strategic. If you sell at a good price, you’re not losing much. When the market corrects, that’s when you buy the dips and feel good about taking profits.

I’ve done some academic work, and in my career, I’ve analyzed things critically. My research on bitcoin is more about brainstorming ideas rather than being super technical.

It’s tough to categorize investments as gambling. When you buy gold, you hold an asset that doesn’t just vanish even if prices fluctuate. I get the gambling aspect when people ignore the asset and only focus on market price.

I’m not super comfortable discussing portfolio allocation outside of BTC and cash. Everyone should figure out their balance based on personal circumstances. But I do think newbies should start with Bitcoin and cash before diversifying.

I don't feel very comfortable getting into discussions about the various ways to apportion your investment portfolio outside of bitcoin and the dollar (or whatever other fiat that you might have as your local currency).. so of course you have to measure your circumstances to figure out what your balance is going to be. I don't have any problem with suggesting that any young / newbie investor to begin to build his/her investment portfolio by only focusing on bitcoin and cash, and once s/he gets up to a certain decently sizable amount, such as something like $50k, then at that point to consider the extent to which further diversification might be helpful.  Of course, the decently sizable amount has a considerable amount of subjectivity - because there might be some measure in which there might be questions about whether the investor feels that s/he is starting to feel that s/he has too many eggs in one basket.  Of course property and equity funds are not bad for attempting to offset having too much specialization but it might not even be any kind of compelling need to diversify until getting to some higher amount.. whether that is $200k or $500k or $1million.... at some point for each of us, we might feel some need to NOT have all our eggs in one basket. Property for sure can tie you down geographically, contain a lot of expenses related to maintenance, taxes, ownership transfer costs and even an attack vector for possible liabilities and lawsuits that others can easily identify that you own it and viola.. all of a sudden there is a lien on it.  But, if you are geographically tied down anyhow, and you need to live somewhere, so it is not a bad thing to store some of your wealth and to diversify outside of bitcoin (even though we also know that property is also suffering from the pumping/inflation mechanisms of the government debt systems). I will supplement by asserting that there is value in the fact that people make different choices in terms of how much value they want to allocate into a variety of differing kinds of asset classes - and for differing reasons.   If you consider your investment into bitcoin as a hedge against the dollar in similar kinds of ways that gold and silver used to be a hedge against the dollar, you might consider that in accordance with Gresham's law, bitcoin is likely going to suck away most if not all of the monetary value of gold and silver.. and maybe there might be some be some Armageddon-like fringe scenarios in which it would have been good to have some gold and/or silver.. but in some sense bitcoin is likely 1,000x-ish better than gold already.. so is there any reason to have both.. or maybe 1% gold and 99% bitcoin.. might be a possible way of allocating that portion of your hedging against the dollar aspect of your investment portfolio,  perhaps?