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1312 sats \ 10 replies \ @ek 16 Nov 2023 freebie \ parent \ on: deleted by author bitcoin

I agree

Statements like

First and foremost, dollar-cost averaging reflects a fiat mentality. If you view Bitcoin solely as an investment and are concerned about "maximizing profits" it suggests a lack of understanding of Bitcoin, and very likely you will sell-out back to fiat as soon as the fiat price skyrockets.

makes whole good articles "taste bad" since they seem to not be written in good faith / very biased.

For me, DCA is a risk management strategy. It's not about max returns. It's about human psychology and spreading out your committment over time instead of taking a leap of faith and potentially getting burned and scared and selling at a huge loss because you've your life savings getting evaporated and want to cut your losses.

Trying to frame DCA as a "fiat mentality" seems to completely miss this point.

487 sats \ 1 reply \ @pillar 16 Nov 2023

Indeed.

For example, if I'm a father of four, DCA-ing my wealth over 4 years might make more sense than lumpsum-ing for me to enter Bitcoin, even if I eventually want to end up all-in. Because I can't afford my net-worth to ever go below, say, 50% of what it is today, without putting my family's day to day material well-being on risk.

Just a random example. You could make another one the other way around showcasing how for someone else it makes all the sense to forget about DCA and just go balls in. I mean, I'm not the best example of caution and you know it :)

227 sats \ 0 replies \ @ek 16 Nov 2023

I mean, I'm not the best example of caution and you know it :)

I know and I did a similar thing as you :)

Just don't know who started first, haha

227 sats \ 7 replies \ @Zepasta OP 16 Nov 2023 freebie

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31 sats \ 6 replies \ @ek 16 Nov 2023 freebie

Holding/spreading fiat poses a higher risk than holding Bitcoin, especially if you live in countries with high inflation rates.

Good point. But I know that my monthly costs are "fixed" in EUR. Fixed in quotation marks because of inflation, as you mentioned.

But I would say I live in a country where the inflation is more predictable than the price of bitcoin.

So I'd rather play it safe and hold funds in EUR that I have to spend in EUR (@DarthCoin responding in 3, 2, 1... lol) anyway.

We might agree that DCA is a short-term risk management strategy?

Sure, I can go all in at the peak and be in a loss for two years, who cares?

You should care since you potentially can't eat or have a shelter for these 2 years if you really did go all in

Something lost in communication may be that one can be 99% in bitcoin but still DCA and hold emergency funds.