Can we really have faith in Bitcoin?

Every Bitcoin investor hopes for its economic potential to skyrocket in the future so they can cash in big time. But I was surprised when a well-known investor advised me to only put in extra cash, you know, the kind you can afford to lose, instead of treating it as a serious investment. This got me thinking... do we really believe in the bright future we’re all waiting for with Bitcoin? I mean, a solid investment should be viewed as a genuine opportunity, right? It should be backed by a decent amount of cash to really make those profits and see good returns later on. So why the push to invest in Bitcoin with just leftover money if we genuinely trust its potential now and down the line?

It depends from person to person: some want to put 10% of their income, others 50%, others 80… Everyone does their own math at home and decides how much to invest. Since it was created, Bitcoin has always delivered returns far superior to any other stock. If someone studies Bitcoin and understands the enormous potential it has, I think they wouldn’t hesitate to put their capital into it. People are afraid of volatility, but in the long run (10 years and beyond) we’ll see a very different price compared to today.

You don't blame anyone for issuing that warning/advice, it's a smart and conservative one. It's now your choice to ignore it to go aggressive/absolute, or almost absolute, this is why it's good to be independent yourself and DYOR. By that you will have your own mind to either agree with the person or do it your way. Either way, I advice you to take it easy with Bitcoin and learn it rightly to know the time to invest and divest. Bitcoin is not a holy grail as many think, it's an asset, and any asset could disappoint you when you need them the most. However, if you understand Bitcoin well, you will not regret nvesting in it regardless of whether or not it's a discretionary money. Overall, the advice is good.

Because others are not us. Because Bitcoin price fluctuates a lot, newbies FOMO when there are news about how greatly Bitcoin price rises (usually at the top of a bull run), then see the price going down rapidly, get scared, panic sell at bottom and blame us for bad advice, not for being stupid and inpatient. So the advice is good. You are new, you didn't catch any crypto winter. With some luck, maybe there will no longer be one. But until we are certain about that, the advice is good. And even after that, big sudden drops will probably still happen now and then. Better be safe and give overly prudent advises than getting sued by some greedy and fearful somebody who thought that Bitcoin is get rich quick scheme. Or live with the blame he has lost everything.

Simply because everything has risks and the future is unpredictable. Our lives are full of unpredictable surprises, and even we don't know what will happen to us tomorrow. So even though bitcoin is very trustworthy, that doesn't mean we should put all our trust and all our money in it. Anything can happen and that is why not only in investing but in real life as well, we always need to have backup plans and diversification to minimize risks.

The investor told you that so you don't mess up your life by investing money you will need for the running of your day to day life in bitcoin and be expecting immediate profits. His advice does not in anyway show that he doesn't believe in bitcoin. Discretionary income of different investors varies, if yours is small another person own might be big. As an investor who's in for the long term you are to only invest with your discretionary income from time to time as you keep getting more resources.

As you are newly here in this forum there are things you should understand because it is a magic on how things works around the forum, so talking about why the so much advocacy to invest in Bitcoin with discretionary income, if truly we trust and believe in it's future and present economic potential, first i will love to explain what a discretionary income is all about if by preventure it skips out of your mind or memory, a discretionary income is an income that remains from your salary or business after all the payment of your bills, so with my definition you will able to comprehend why people advocate to invest in Bitcoin with discretionary income so that they can't be able to invest with and income that is meant for another thing, and the process end up trading or gambling which will make you lose so much money, discretionary income is so important as far as Bitcoin investments is concerned.

If you are speculation about belief and belief that understanding is far and returning to each individual. Example: There are millions of people on this planet, but not all humans believe and believe in one religion and God, every human being has different understanding, beliefs and beliefs, but they know that God exists and one and invisible. Likewise with Bitcoin, they know that Bitcoin cannot be touched, but they know Bitcoin has value and is beneficial for them, If you look at success for those who believe it as an investment like Elon and the government, those who do not believe are left behind and don't get anything. If you want to speculate with Bitcoin, first speculation in ourselves, what percentage of we trust Bitcoin, if we are sure only 1% is useless, just a waste of time.

The advocacy to invest in Bitcoin only with your discretionary income is best, real and safe. This is because we can't pause our lives because we are investing in Bitcoin. That we are investing doesn't mean every other thing in our lives that needs money will seize so that we can invest with something real and big as you put it. If you start up an investment scheme in Bitcoin, using a great portion of your income to invest, how then do you meet up with your Basic needs, how do you take care of family and or personal demands that needs money? So, when the need of money arises, thus leaves you stranded and makes you tap into your Bitcoin assets to survive, thereby reducing your accumulated Bitcoin. So that's why the investor adviced that you should accumulate Bitcoin using the discretionary income, an income that remains after your have settled all your financial needs. By this, you wouldn't have any need to worry or panic even though Bitcoin price falls. This will enable you accumulate and Hodl Bitcoin for long term(4-6years or above)which will gives better profit.

Have you not done your own research on Bitcoin yet? if No what are you waiting for? you can find the answers you seeking yourself. You can turn Bitcoin to a real time investment if you want, the question is are you capable? do you have what it takes? If you can invest in bitcoin and still be able to settle your bills and savings then you are capable. My advice is try to know and understand more about Bitcoin first, you deserve it if you are going to turn Bitcoin into a real time investment. DYOR

Many people are doing it with extra money simply because they cannot afford to allocate a significant amount. It's either that or they want to test the waters and don't want to commit fully. The important things to consider IMO are Risk management / Position SizingDiversification Long-term perspective with DYOR There are several factors to consider, including the significant crashes seen in 2017 and 2022. It is also important to acknowledge that the value of your investment can be lost, given these types of market fluctuations. Being ready with how much you are investing should be a primary factor.

Well generally speaking bitcoin has had wild swings in the past like 100% rise in 1 month into a bubble (2017 the $20k peak) followed by a bear market where price drops >80%. So you should be aware of the risks and not make a big investment so that you don't have to endure pain in case a bear market occurred. On top of that, for beginners it is best if they don't take bigger risks and invest what they can afford to lose because many people don't find it easy to use bitcoin correctly like having a cold storage, controlling your own keys in a safe manner and basically security related stuff. If a newbie makes a big investment and then due to oversight loses their private key (or seed phrase) they'll lose all that money! Apart from that, if you look at the history you can see the growth too and you can also see the potential for future growth as the adoption continues still; meanwhile the supply is finite...

Because all investments including Bitcoin has risked involved. It’s a safety precaution if shit happened so that you will not lose all your money if you put it all on Bitcoin. Bitcoin investment promise a good return in the long run but you will never know when you will need funds if ever you will invest all your money. You will suffer huge loss if you need already the money while Bitcoin price dump at that particular time that’s why you should only invest what you can afford to lose.

The historical traditional thinking is: Michael Saylor twisted that to read: because putting your money anywhere else in the FIAT form other than Bitcoin means its losing value in the long term. So some people cling onto that old traditional way of thinking. Bitcoin has stayed resilient through the years of attack and negativity, it has proven itself but some people still doubt.

Your level of risk is your decision. You’re perfectly welcome to have a diversified portfolio, it’s probably a smart thing to do. Bitcoin has proven over it’s entire existence though to be a great investment so we can definitely trust it.

Would you be willing to sacrifice your monthly needs for the sake of that investment? Wouldn't it be more ideal if you had enough to cover your needs and could invest the rest? Actually, you can invest a larger amount of your discretionary income, but your needs may become a little difficult to meet because your monthly income will be spent more on investments, and you are confident that your BTC investment will grow significantly in the future. But for us, this is quite realistic—prioritizing your needs first and then investing the rest in BTC.

I believe this is one of the major reasons why i would recommend that newbies should invest only a small amount of their funds into BTC, at least at the beginning of their journey. So many newbies do not understand the basic things, such as how to keep their seed phrase safe, how to set up a cold wallet in a safe environment or even how to keep shut about their BTC holdings. However, for someone who understand all of these, they can invest as much as they would put in other investment. I.e. investing as much in BTC as you would invest in gold, real estate, stocks and the rest. BTC is volatile, but you don't lose unless you sell or you lose your coins.

Thats simple.  Its because Bitcoin is more like a high-stakes gambling, not a savings account. For example, I can believe Bitcoin will hit one million dollars some day, but that doesnt stop it from losing 50% of its value next month. Thats called volatility. If you put your rent money in, and it drops 50%, you panic, you sell at a loss, and you go broke. Thats a financial disaster. If you put a little fun money in, and it drops 50%, you just wait it out. You can afford the loss. So basically, invest like a believer, but manage your risk like a skeptic.

Investing a huge amount without having basic knowledge of how to secure it might lead to a big loss. Newbies need to spend more time in the industry to enable them to have firsthand experience with the dos and don'ts of the industry. I have had a bad experience where a newbie was blaming me for his losses after he panicked and sold his coin, thereby incurring losses. It is important to tell newbies about the risk involved in Bitcoin investment to avoid the blame game.

To me, the advice to use discretionary income is not a lack of belief, instead, it's actually a recognition of reality. Every trusted investment has its risks and Bitcoin is no different. The future looks promising, yes we believe but we can not pretend that the path will always be smooth.  Using discretionary income is just a way of saying “I’m in this for the long haul but I won’t put myself in a position where I’m forced out by life’s unexpected needs.” Belief in Bitcoin doesn’t have to mean recklessness, it can also mean discipline.