Post/stackingem

Stacking ’em Volume 9 (February 2021)

Posted on by Bitster Money Mustache / 0 Comment

Another month, another salary, another Bitcoin purchase! The price paid was 28190€ / BTC which means I got ~0.017 BTC (with my 500 eurobucks) added to the stack that stands at ~3.86 BTC today. This was yet again the highest price I’ve ever paid for Bitcoin. Four such purchases in a row now (in other words, 4 monthly ATH closes). I fully expect this trend to continue during the year. Some guys buy the dip, I’m buying the tops it seems. Measured In Eurozone fiat I’ve been hovering around the 100k mark during January. 100k was a major milestone ever since I started this journey and has been on my radar for the past 3 years. Now that its accomplished and the champagne down the throat, 200k sounds like an easy grab and therefore I’m setting 500k for my next major milestone target, confident to hit it later this year.

Seems like we got our first major bull market correction in January. It was pretty much a non stop go for higher prices during December and early January so it makes perfect sense and in retrospect should’ve been expected. But the way bull market wires your brain, you never truly expect a correction (at least I don’t). The pull back was ~30% and in line with the corrections from the previous bull market (for example Sep 2017 from $4800 to $3200). So we should expect to have similar corrections along the way during the year, and the eventual top will feel the same – that’s why its impossible to sell the top. So don’t even try.

One thing I thought about while watching the dip and not having dry powder:

As said in the previous post I used all my dry powder to stack at the start of the month (as I always do) with a price of 24690€ / BTC. That was more or less the absolute bottom of the dip we had last month. So If I would have saved some dry powder to wait for a dip and caught the falling knife perfectly, I would have got the same price as I did with my brainless stacking strategy. I realise I was lucky to have the ‘salary date / price chart’ – relationship in my favour but nevertheless it makes me feel like waiting for a dip is kinda useless.

Constant stacking = front-running the dip

Fiat also feels shittier by the day. Not sure if it’s because of the way of the world or because of my ever increasing Bitcoin knowledge / Bitcoin confidence. Nevertheless, it’s a fucking hot potato in my hands and I can’t wait to get rid of the dirty euros. Doesn’t matter if BTC is at an all-time high – I wanna buy, I’m gonna buy. Let’s look at some charts:

The orange line is my BTC stack, ever increasing, unfortunately flattening. The green line is the corresponding fiat worth (in euros). The dashed black line is the amount of fiat invested (thank for the recommendation for this line from one of you readers). From the dashed line we can see that even last year still there were times when I was hardly having any gains from my investment (corona crash). That’s more than two years of constant stacking mixed with frugality and with little or no positive results. Makes me feel you’re not gonna make it if you are for quick gains and lack the confidence in your strategy and in Bitcoin in general. This 2+ year period was also the most important phase of my journey with majority of the Bitcoin stack gathered during this time. That was the work that had to be put in, the launchpad that’s needed for success and now I’m reaping the rewards. Fully deserved. Next chart:

The bars represent every Bitcoin purchase I’ve ever made, once per month, 41 in total. Obviously I’m on profit with every single purchase, the best buys were made during the bear market with gains of 800%+ on one of those so far. On average I’ve made +350% with every purchase. I’ve said it before but this kinda data is what keeps me going eventhough a 500€ might seem like an insignificant addition at this point. Basically, do I wanna turn that 500€ into 2250€ with a simple trick? Yes I do and that’s what I’ve been doing the past 3+ years and that’s why I have a stack at this point. Not gonna stop. Next chart:

The orange line represents the gains my BTC savings strategy has given for the total amount of money I’ve put in. The blue line is a corresponding performance of an S&P500 strategy had I used that instead of Bitcoin as my savings vehicle. Bitcoin has given me nearly 400% gains for the total amount of money put in, whereas S&P would have given a measly 30% gains. Bitcoin is overperforming the boomer savings tech by more than 10x (and this is only the beginning). I feel sorry for the (old) people who are unable to understand Bitcoin and miss out on the best savings technology ever available to mankind. One more chart:

In September I wrote about MicroStrategy after their announcement of the BTC purchases. I was expecting the MSTR stock to start to perform similarly to Bitcoin and started to maintain a gainz-chart with GBTC and MSTR. The chart starts from the date I wrote and published that post. In general GBTC had been the better performing asset of the two but MSTR made some nice comebacks and the recent month has been huge for the MSTR stock. During these months they have of course also added to their initial stack so you could think of the MSTR stock as an automatically compounding GBTC. Nevertheless the current situation is almost +400% gains for MSTR while GBTC is sitting on a +220%, quite a big difference to the favour of Saylor. I have no horse on this race as I’m not a stock guy, but I’m pleased to see this Saylor company do well and especially when compared to GBTC because Barry Silbert can go fuck himself.

Thats all for now! 2021 started with a boom, 11 more months to go. Gonna be amazing year. Keep on stacking folks! In Bitcoin, there are no shortcuts.

-Bitster Money Mustache

Twitter: @BitsterStacker

Ps. I really appreciate the comments some of you have made below these posts. Unfortunately, the ratio of human / bot is 1 / 1000. I decided to make it more difficult for everyone, might turn it off altogether. Let’s have those discussions on Twitter!

Post/stackingem

Stacking ’em Volume 8 (January 2021)

Posted on by Bitster Money Mustache / 11 Comments

Twenty-one! What a great year (and century) to have a bull market in.

First bunch of sats stacked at a personal ATH price of 24690 € / BTC. This time I was able to burn 1000€ of dirty fiat money instead of the usual 500€ due to a small Christmas bonus from work. I was able to get ~0.04 more BTC to the stack which grew to ~3.85 BTC in total. Fiat net worth at an all time high, BTC net worth at an all time high (obviously, like every other month).

Wow, what a month. The longest in my life. As I’ve said before – Bitcoin is life extension 😉

It really is a bitter-sweet feeling to stack at these prices. It all happened so fast, just a few months ago I could have had 3x the amount of sats with this amount of fiat I’m burning. On the other hand, my net worth has increased substantially and is nearing 100k euros – something I would have never believed of myself (before Bitcoin) and something that makes the 1 million € ‘target’ feel realistic, reachable, inevitable and kinda close actually. More and more I think I’m gonna hit it this year.

Bitcoin critics at Twitter are currently funny as hell. Amy Something, Peter Zeitgeist and Frances Coppola to mention a few. I’m not sure if the Bitcoin critics have always been this dumb? Or if this is the first time I’m watching such people struggle a thought with a sufficient Bitcoin knowledge myself. Because, tbh, in 2017 I was a fucking noob myself. Still, the level of brainfarts these people let out is amazing. Is the decimal place really that hard of a concept for grown up adults? Apparently it is. Bitcoin has had critics of various levels all the time, even Michael Saylor dismissed Bitcoin in 2013. But the smart people learn as they go and so the crowd of critics that stay gets dummer on average year after year. Just like the 200 week moving average of Bitcoin price has always gone up and continues to go up, the average IQ of Bitcoin critics continues to go down (Figure below). Eventually there will be only one left, with a super low IQ, and he (or she) can’t understand how the rest of the world doesn’t realise something that is obvious to him (or her). Interesting to see who it’s gonna be.

Time for some performance charts:

The orange line is the amount of Bitcoin I’ve managed to stack during the past 3+ years. The green line is the corresponding fiat net worth in euros. The orange curve is flattening while my net worth is shooting upwards. My BTC amount is gonna have a ‘top’ not too far from where I’m at right now (asymptotically approaching all the time), but the corresponding fiat net worth (or purchasing power) has no top. It’s around 95k at the moment, 100k party any day now. What’s amazing is the timeframe all of this is happening. Two months ago I was below 50k still. How’s the chart gonna look like in 2 months from now? How about 4 months? Six? A year? God damn, how am I gonna get any work (at my fiat job) done in 2021 =D It won’t matter though, I’m not planning to stay there for much longer, sovereign pleb life awaits 😉 Next chart.

The bars represent every Bitcoin purchase I’ve made so far. Once a month, starting from October 2017, forty in total. At green (obviously) with every single purchase. On average, I’m up ~300% with every purchase. It’s a simple visualisation of the power of stacking. And also a great motivator for continuing the stacking: Do I wanna spend an extra 500€ next time the salary hits my bank account? Or do I wanna turn it into easy 2000€ by simply using the best monetary technology ever available. Next chart:

The orange line is the overall performance of the money I’ve put into Bitcoin. The blue line is the corresponding performance if I would have used the boomer savings technology, S&P500, instead. Boomer tech would have given me a measly 30% return so far whereas Bitcoin has served me with a 300%+ overall return as we speak. Quick math tells me Bitcoin has been 10x better as a savings technology and I’m expecting it to further outpace S&P during the year. Sometimes I go to the normie investing subreddits to mention Bitcoin but the folks there are simply hopeless (and I’m now banned). Nevertheless, I can’t help but feel sorry for the slaves that are blind to the world and blind to the solution. They will yell ‘Ponzi’ for the next decade and it will always be ‘too late’ to join. The reality is:

It’s never too late and it will always feel too late.

Your only battle will be with your own mind. You must overcome yourself to free yourself with Bitcoin. I can try to help but I can’t help. This has been evident with many of my friends and relatives, even then smart ones. One more chart:

Few months back when MicroStrategy announced their first Bitcoin purchase I wrote a brief piece about MSTR stock and GBTC performance. Since then Ive been updating the above chart which starts at the date of my aforementioned post. I update this chart manually and I’m at times pretty lazy – therefore there’s a hell of a lot data points missing but the trend is more visible with less noise as a consequence. The overall trend seems pretty similar but MSTR is not getting the full boost that goes into GBTC. Though, at times MSTR will get its own boost that is not coinciding with a general BTC/GBTC boost. I initially thought MSTR would be the better pick of these two (don’t ask why) but currently GBTC ‘leads’ with 170% vs. 135% – returns since the start of this chart. Let’s see how it goes during this year, maybe I’m asking for too much from a stock to outperform the king Bitcoin. But if any company were to do it during a bullrun it will obviously be one with a massive BTC stack on their balance sheet.

That’s all for now. Have a great year 21 of the 21st century. I think we will all be surprised by Bitcoin, again. It never seems to fit into our ‘models’. And that is good.

-Bitster Money Mustache

PS. during the writing of this post 100k was broken, popping the bottle right now, cheers!

Post/stackingem

Stacking ’em Volume 7 (December 2020)

Posted on by Bitster Money Mustache / 8 Comments

Another month goes by, another salary hits the bank account, another Bitcoin purchase. 500€ of dirty fiat money transformed into the best money humanity has seen, Bitcoin. Bought with near ATH price, 15800€ / BTC, I was able to add another ~.03 BTC to the stack taking the total to ~3.81 BTC. Just like last month, this was the highest price I’ve ever paid for Bitcoin and just like last month, my net worth is at a new ATH.

Whooh, what a month! Price ticking relentlessly upwards. A month ago, I wouldn’t have thought we’d tease the ATH during this year yet. I always thought it’d be broken early 2021. But what do I know. What do any of us know? And what even is the ATH? Some people say, we hit it already. Might be true for a certain exchange. I got no idea but I’m gonna celebrate when we brake 20k, not any earlier. And that too, is gonna be soon.

Flattening the curve is starting to show. My BTC stack is growing at half the pace I’ve been used to during this year. And it’s only gonna slow down more and more as we enter 2021. It’s a bitter sweet surreal feeling tbh.

Missing the days of low prices, looking forward to new highs.

Starting to feel like 4 BTC is the best I can do. Getting that fifth is so far away. Though, it doesn’t really matter, I’ll keep stacking no matter what and we’ll see where it takes me. There’s a mind shift going on however. I used to look forward to every new full BTC – the first, the second, the third. Fourth I’m gonna get still. But after that my eyes are gonna be looking for the next .1 instead. It might seem like a semi-useless amount but imo its a kind of unit bias. We like round numbers and everyone wants to have a whole coin. Its only natural. But if you are new to Bitcoin don’t let it bring you down. Get that .1 and be proud of it. The way I’m looking at every .1 right now is – Bitcoin is going to 1 million sooner or later. Point one is gonna be 100k and I’m living through an opportunity to get 100k with less than 2k euros right now. The best deal ever! Make it count!

Even after 100k, the stacking shall continue and more mind shifts will follow. We are normalising moon numbers all the time. Bitcoin will never be below 10k again, could you have believed this a few years ago? 100k already feels kinda boring and inevitable and it will shock no one next year (maybe unsuspecting normies). 1 million is a moonshot right now. But just like the other moonshots before that, I’m sure its gonna be normalised in the not too distant future. 10 mil feels like too far away to think of yet, but that too is gonna happen during my lifetime. God damn, getting bullish and off the track but what I meant to initially say is – fiat is trash and only good for spending. It’s always a happy feeling making that conversion fiat –> BTC. Therefore, there’s no price I’d not wanna pay to get more BTC. Let’s look at some charts:

The orange line is my BTC stack, the green line is the corresponding fiat worth. Last month was the first time in my life I hit 40k€ net worth. Since then we flew past 50k and right now I’m just over 60k. Net worth growing ten K after 10k, the 100k party is gonna happen soon. And that will only be the start for this bullmarket. God damn it, I’m getting bullish and excited. It’s a bummer the orange line is gonna flatten from now on but it was inevitable and I’m sure everybody feels the same way – they should have stacked more when they could. Well, the truth is there was no way for me to stack more than this =D I’ve stretched it to the max already. Next chart:

The blue bars represent the gains made for each individual BTC purchase I’ve made. Once every month, starting from October 2017. Obviously every purchase is on profit today. On average, I’ve made 160% with every purchase. This info/stat also kinda keeps me going. When I get my salary, do I wanna spend it on some crap or do I wanna make 160% more with a simple procedure. Keep on, carry on. Next:

Here I’m comparing my BTC investment strategy to the performance of S&P. This is because Bitcoin is modern savings technology and S&P is ancient savings technology. The blue line represents a case where I would have used identical money to buy S&P instead of Bitcoin. Total gain for money invested so far would be slightly less than 30% with S&P, and is slightly more than 180% with Bitcoin. Case closed! Save your money with Bitcoin folks.

A few months back I suspected the MicroStrategy stock would start to perform like Bitcoin going forward due to the massive amount of BTC they hold on their balance sheet. For fun, I started to maintain a chart comparing MSTR with GBTC, thinking it would be nice to follow exactly how similar the performance is, and to see if MSTR could even outperform Bitcoin (or GBTC). Chart below:

The chart starts from where I wrote the post. I update the data manually with random intervals because I’m lazy like that and sometimes I forget. So it’s probably not the most useful chart but conveys the idea. During early November I thought its not working as expected when Bitcoin had a run but MSTR did not really participate. But then during the latter part of November MSTR had a nice run and today they stand with similar performance since the start of the chart. I think I’m gonna continue updating this, it’s gonna be interesting to look at with more data. The first impressions are as follows – GBTC reacts quicker to BTC price hikes, MSTR lags. GBTC dumps hard with BTC, MSTR is dump resistant.

That’s all for now! Looking forward to Bitcoin flying past 20k, looking forward to stacking in 2021, buying the top, month after month. Hitting that 100k net worth, hitting that 100k BTC. Next year is gonna be awesome. The best year ever. The face diapers and covidiot bullshit can’t ruin it. Hopefully people wake up and grow a spine / pair. Not likely but one can hope. Remember to stack and never stop.

–Bitster Money Mustache