3505 sats \ 27 replies \ @pillar 16 Nov 2023 \ on: deleted by author bitcoin
I find this article quite stupid. The imperative and paternalistic tone is childish.
DCA-ing is a way of entering Bitcoin. Lump-sum is another. Not buying Bitcoin at all is another. Going all leveraged is another.
They all have advantages and disadvantages. Different people with different lives, needs and financial plans should take different courses of action according to what suits them better. Telling the whole world "do this one thing" seems very much arrogant.
I think you could have made a "The issues of doing DCA in comparison with the lump-sum strategy" with 80% of the content you have here and I would have enjoyed it a lot. But, in my opinion, you ruined it with that tone.
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.
reply
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 :)
reply
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
reply
deleted by author
reply
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.
Is that not "basically" all in?
reply
reply
big balls 🤣😂
reply
deleted by author
reply
hopefully, a substantial amount of savings in fiat that can cover your expenses for several months in case of immediate emergencies.
Now, imagine your boss kindly sends you $10,000 as Bonus
Now we're suddenly talking about emergency funds and bonuses. Moving the goal posts?
I thought you meant literally all in, 100% bitcoin, 0% fiat at all times
Complete exposure to volatility
That's at least what I am arguing against and in favor of DCA.
My point with this "You Shouldn't DCA Bitcoin" is that instead of spreading out the conversion of those $10,000 over a year (buying small amounts regularly), i suggest converting the entire sum at once and avoiding the DCA approach altogether.
Okay, I see. I can agree somewhat with that.
I guess the best is a mixed strategy: lump sum first, then "DCA" (or however you want to call regular buys) and buy the dips
reply
deleted by author
reply
My intention was not to suggest that individuals with a family of 10 should all their money into Bitcoin all at once leaving them without enough fiat for monthly expenses and emergencies. That's just crazy.
TL;DR — No DCA-ing, go all in on Bitcoin as soon as you can.
I hope you can see where this misunderstanding between us comes from.
Could quote more comments from you but currently not enough time. Maybe later or if you want more clarification.
reply
deleted by author
reply
I'm very confident your intent is good, but I have to tell you it's quite confusing to have someone make an article titled "You Shouldn't DCA Bitcoin", with the sentence "No DCA-ing, go all in on Bitcoin as soon as you can." as TLDR, only to afterwards say that they recommend people to DCA.
I would personally reconsider the way you deliver the knowledge. The spirit is good but this approach could wreck a lot of confusion on people...
reply
deleted by author
reply
My feedback would be that nuance is missing
Don't push an agenda. We already have MSM for that.
Show that you have compassion for the people you don't agree with and try to understand their fears, problems, etc.
Not saying that you don't have and don't understand, but it doesn't show.
reply
I'm glad this helps, looking forward to seeing more content.
reply
Doesn't everyone with a regular income DCA?
I would say I DCA, because I always put a chunk of my paycheck into bitcoin.
But maybe it's DCA because I don't do it at once. I spread it out over days. I like to buy dips.
Edit: Oh, @TNStacker also mentioned this here
reply
Why should people who don't understand bitcoin buy any bitcoin? You believe in actions being take based on authority?
reply
Fiat is heading towards zero, people need to study Bitcoin.
I normally don't tell normies to buy btc, but rather to study it.
reply
Exactly!
reply
I agree with you, and that's what i recommend newbies do.
This is fiat mentality. I got you ! 😂
reply
Here's my .02 -- a lot of @Onions post have the general vibe of "Here is the truth and the one right way, and if you don't share this perspective you're a fucking idiot, HFSP lol".
And maybe that's really how you do feel, @Onions, and if so, that's fine, you do you. But I personally find it so tired and so off-putting. JFC, does the space need more know-it-all aggressive assholes? Is there anything that is in greater supply in btc than that?
About some people, I wouldn't even bother to say anything. They're mimetically sealed, they're locked into that identity. But I get the sense that you could take a different approach, if you wanted. And the btc space would benefit if you did.
reply
stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.
Have fun having less bitcoin. Advocating for people to trade dollars to have less bitcoin is literally slowing down bitcoin adoption and pumping dollars. Maybe if you DCAers had not been so innumerate, OP would not have had to write this!
reply
Yea was close-minded.
reply
Just math.
reply