Post/stackingem

Stacking’em Volume 37 (October 2024)

Posted on by Bitster Money Mustache

Back at it! There’s been a long break from writing this blog. Mr. Stax has had some rough times, and you know how it goes, you miss once, you’re gonna miss again. Just like going to the gym. You miss once because you don’t feel like it, you’re gonna miss again. And again, and again. That’s kinda what happened to the blog earlier this year, but thanks to you guys, finally got enough of a push to bring myself back. But the most important thing is – the stacking never stops. You don’t stack when you feel like it. You don’t not stack if you don’t feel like it. You stack every month before you get to do anything else with you newly fiat mined money! This months’ price was ~57200 € / btc which means I got another ~.008 btc added to the stack (I buy with 500€ every month) that totals roughly 4.55 b/c today.

The coin’s been teasing us a while with trying to break into new ATHs while patiently waiting for the ‘normal’ schedule familiar from the previous cycles. Many people (myself included) already announced that the cycles are dead after seeing a new ATH before the halving. But if you think that the previous ATH was suppressed (as it was with the FTX etc. fuckery) then you could argue that the cycle is perfectly in tact and it would be textbook cycle theory to reach a ‘real’ ATH at the end of this year and go on to the price discovery mode next year. Well, whatever happens, I’m sure bitcoin will surprise us, one way or another, as it always does. Let’s take a look at the charts:

The orange line is my bitcoin stack, ever increasing, currently around 4.55 btc. The journey from 4 –> 4.5 btc was roughly 2 years with some nice discounted btc prices. With the bullmarket so close ahead of us, I don’t think I’m ever gonna reach 5 full coins. The orange line will inevitably flatten and keep me below 5 on the chart, though I’m not so sad about it as at the same time the green line is gonna shoot straight up. The green line is the corresponding fiat worth, lately reaching a new ATH of nearly 300k measured in eurozone funny money. The black dashed line is the total amount on money spent, currently ~45k€, in the span of 7 years.

The bars represent every bitcoin purchase I’ve ever made, once per month, starting from October 2017, 85 in total. For example, in October 2017 I made my first btc purchase when the price was ~3700 € / btc, this purchase has now given me a +1440% on the money put in. Nearly every one of these purchases has been on the negative at some point on time. And there has been long periods when it would have made more sense to just stack fiat in the bank account instead of buying bitcoin every month. But there simply is no shortcut to building your stack. Everybody needs to feel stupid and be underwater (even Saylor), and eventually, if you persevere, you will end up with a nice bitcoin stack. It’s a cliché but it’s true – no pain, no gain!

The orange line is the performance of my bitcoin savings strategy. The blue line is the performance of a ‘normal’ savings strategy of using S&P500 as your savings vehicle. Basically, I wanted a baseline for my bitcoin strategy as nobody stack fiat to their bank account. So, I chose to compare my bitcoin strategy to S&P.

Stacking sats vs. stacking stocks.

My bitcoin strategy has given me ~470% profit for the money put in, whereas an S&P strategy with similar investment amounts would have given only 64%. That’s roughly a ten X, and the bull market hasn’t even started yet. Choose your savings vehicle wisely!

That’s all for now! Happy Halloween and see you again next month!

-@BRetirementPlan

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Buy bitcoin at Swan

Buy bitcoin gear at Coinkite

Post/stackingem

Stacking ’em Volume 36 (January 2024)

Posted on by Bitster Money Mustache

Another month served at the fiat mine, another salary hitting the bank account, another bitcoin purchase made at market price! As per usual I squander 500€ of my fresh salary and try to survive the month with the rest. The price this time was around 39100 € / BTC which means I got another ~.013 BTC added to the stack that stands at roughly 4.47 BTC today.

So, the ETFs are here. And nothing really happened, price wise. Well, maybe something happened, beforehand. But that was also pretty basic bitcoin pumping that happens all the time, with or without some bullish news. Don’t really know what to make of it. Are the ETFs not popular enough? Are the ETFs used to somehow dilute available supply? Is there a delay in the effect and we will see the ‘ETF bull’ eventually but not immediately? Don’t know. My guessing is, the availability of such products doesn’t immediately turn into a big demand. But maybe when the real bull market starts, for example half a year after the halving, maybe the ETFs will amplify the bull craziness making it possible for more than ‘the usual amount’ of people getting involved. We’ll see. In the meantime, gonna keep on stacking them sats! Let’s take a look at the charts:

The orange line (left axis) is my btc stack, ever increasing, getting closer to the next milestone of 4.5 coins. The green line (right axis) is the corresponding value in eurozone fiat terms, recently shooting up past 150k and aiming for a new all time high in the future not far from here. The black dashed line (right axis) is the total amount of money put it, mostly 500€ per month (3 exceptions, mentioned in the blog). The total amount after 6+ years is ~40k at the moment. Hell of a lot! But it really has happened one month at a time, 500€ at a time.

Bitcoin stacks are not built in a day.

The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 76 in total. Only 9 of these are underwater, the worst one being ~ -25%. The best buys from 2018 – 2019 bear market give me a return of +1200%. That’s your asymmetrical bet right there. You gotta be willing to go underwater for a while to get some +1000% returns in the long run. Some people (not gonna name anyone but Peter Schiff you pussy) are not willing to endure the minus twenty fives.

The orange line is the performance of my bitcoin savings strategy. The blue line is the performance of putting similar amounts on similar days into S&P (the standard boomer savings strategy). The bitcoin strategy has given me a profit of ~330% for the money put in, whereas the S&P strategy would have given me a measly profit of 42% for the money put in, after 6+ years (that can’t be more than inflation really). I made this chart because I used to be obsessed about the early retirement / financial independence thing, blogs like Mr Money Moustache, for example. Basically, they save as much as they can and buy the S&P with it every month. So, I felt like finding the cheat codes and wanted to track just how much better it is to always buy bitcoin instead. Feel free to share this chart to anyone in the FIRE sphere =D.

Here I’m comparing the performance of MSTR stock to GBTC that was the popular earlier way for bitcoin exposure. Not surprisingly, they go hand in hand but in general MSTR has been the better bet. The chart start when Microstrategy first announced their bitcoin treasury strategy. Interesting to see how the ETFs will affect this dynamic, if at all.

That’s a wrap! First post of the year. Gonna be an interesting one for sure. ETFs are already here, halving is coming soon, bull market might also start in full force within the year. Keep calm and stack sats!

@BRetirementPlan

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Buy bitcoin at Swan

Buy bitcoin gear at Coinkite

Post/stackingem

Stackin’ em Volume 35 (December 2023)

Posted on by Bitster Money Mustache

It’s been a while since updating the blog, life hitting hard on other areas being the reason, nevertheless the stacking never stops! Fiat mine keeps running, salary keeps hitting the bank account, sats keep getting stacked. The price for December was around 34800€ for me which means I got another ~.014 btc added to the stack that stands at roughly 4.45 btc at the moment.

A lot has happened since I last posted, bitcoin seems to be in an ‘up only’ mood. I remember writing about a similar phase in 2020 when bitcoin started to creep towards the previous all time highs (from 10k –> 20k) without any real downturns. That was half a year after spring 2020 halving so currently we are ~1 year early (compared to the previous cycle) approaching the previous ath. The cycle theory was already a bit disappointing (although timely correct) last time around, but now it seems we can throw away any predictions made with the previous cycles behaviour. Basically, Bitcoin is gonna keep doing the thing it always has been doing – the unpredictable. Let’s take a look at the charts:

The orange line (left axis) is my btc stack, always increasing, getting closer to the next milestone that is 4.5 btc. The green line (right axis) is the corresponding fiat worth, climbing up again after finding the bear market bottom below 100k, now above 150k and not too far from ath numbers. It has to be said that the actual performance has been more of a rollercoaster but this chart is made with the purchase dates, once per month data points, so you cannot see all the volatility. The black dashed line (right axis) is the total amount of money spent, ~40k at the moment, during 6 years with once per month purchases.

The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 75 in total. That’s 75 months religiously buying bitcoin, during the bulls, during the bears, not spending the money on something else, keeping the course, eyes on the price. It’s a hard work creating your bitcoin stack, no way around it. About the chart: the best buys from 2018-2019 give me gains of ~1000% while the worst buys form the previous bull cycle give a loss of -35% (the small blip down from 0-axis in late 2021). There’s your asymmetrical bet that bitcoin provides. And these -35% paper losses are the ones that the boomers are afraid of thus keeping away from bitcoin.

The orange line is the performance of the bitcoin savings strategy. The blue line is the performance of a standard (and poor) savings strategy of similar buys into S&P instead. The S&P strategy obviously has less volatility which is probably why it’s more popular among people with trouble holding their piss, but if you can stomach the volatility, there’s little reason why shouldn’t opt for the clearly superior savings strategy. The bitcoin strategy has given me a +290% profit for the money put in, while S&P strategy would have given a measly +38%, a near 10x difference and we are at the precipice of another bull market which will most likely stretch this difference to unimaginable levels.

That’s all for this month, and year! I hope you have seized the day with your stacking capabilities and I hope next year provides us some nice upticks for a while. The bear market has been long but we survived it and are ready for the bull and the struggles it provides us (it’s not easy in the bull market either). Have a nice Christmas and New Years, see you next year!

–@BRetirementPlan

Affiliate links:

Stack and withdraw at Swan

Buy bitcoin gear at Coinkite