Bitcoin (BTC), regularly bought when salary comes in...Story of a 40-something investor becomes a hot topic

▲ Bitcoin (BTC)

The story of a 40-something investor who declared that they would pour their entire monthly salary into Bitcoin (BTC), leaving only living expenses, and never sell it for life, has been revealed and is attracting widespread attention. The extreme single-asset "all-in" investment sparked a fierce debate between those who advocated it as an innovative belief towards financial freedom and those who warned it was a perilous gamble threatening retirement preparations.

According to 'The Moneyist,' a financial advice column in the US economic media outlet MarketWatch, on September 28 (local time), the individual, who identified themselves as a 47-year-old office worker, stated, "When my salary hits my bank account, it passes through Bitcoin," revealing that they are investing every dollar earned into buying Bitcoin. They emphasized their "permanent holding" principle, stating, "I first started buying Bitcoin at its peak of $104,000 and continued to accumulate without pause throughout the crash when it fell to the $58,000 level," adding that they would not sell even a single Bitcoin.

The individual cited a strong distrust of the continuous depreciation of traditional fiat currency and inflation as the core background for their investment. They believe that in a situation where governments and central banks print unlimited currency, eroding purchasing power, only Bitcoin, with its supply strictly limited to 21 million, can be a true store of wealth. They stated, "I have no intention of selling for life and only trust Bitcoin," seeking advice on whether their aggressive investment approach was irrational.

In response, Quentin Fottrell, MarketWatch editor who writes the column, warned that a clear distinction must be made between firm conviction and reckless financial risk. Editor Fottrell pointed out, "It is clear that Bitcoin is an innovative store of value and one of the highest-performing assets over the past decade," but added, "Betting one's entire future on a single volatile asset directly violates the fundamental principles of risk management."

Especially considering the life-cycle financial structure for someone in their late 40s, advice followed that portfolio diversification is essential. Analysis suggested that if a severe downturn occurs as retirement approaches within 10 to 20 years, one could face the worst-case scenario of having to sell Bitcoin at a fire sale price, incurring losses due to a lack of liquidity. Experts pointed out that an "all-in" investment without preparing an emergency fund, repaying debts, and establishing stable diversification safeguards like traditional stocks and bonds could jeopardize the entire retirement plan.

The extreme experiment of individual investors entrusting their entire wealth to virtual assets in defiance of the depreciation of fiat currency is attracting market attention. Investors are keenly watching whether the 'permanent holding' strategy, driven by strong conviction, will lead to success in overcoming inflation or end as a painful lesson due to a lack of portfolio management.

[Article Key Summary]

-A 47-year-old office worker became a hot topic after revealing they invested their entire salary in Bitcoin (BTC) and would never sell it for life.

-They consistently purchased Bitcoin from its peak of $104,000 down to the crash at $58,000, countering the depreciation of currency value.

-Experts acknowledged Bitcoin's potential but warned of the risks of an "all-in" single-asset investment, especially for those nearing retirement.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*