This time I’m gonna slightly dodge my responsibilities for you readers and instead of writing a separate post here, I’m just gonna link the article we wrote with Carl B Menger and was published few days ago. Check it our over here:
See ya next month!
Another month goes by at the fiat mine, another salary hits the bank account, another bitcoin purchase adding sats to the stack that has been ever-growing since October 2017! As per usual, I dedicate 500€ of the salary for my bitcoin retirement plan(tm) and with the rate of ~26600€ / BTC, I got another .019 BTC added to the stack that stands at ~4.32 today.
Sentiment seems to have finally switched from bear market sorrows to hopeful pre-bullmarket optimism. Not sure if we’re in the ‘up only’ territory just yet, but would say the bottom is in, and congratulate everyone that has made it through this far during the current / through the most recent the bear market. Many of you have asked for the spreadsheet which I use to create the charts in this blog, so here you have the template and next I’ll walk you through how to use it:
https://docs.google.com/spreadsheets/d/13At3-TUDP33xuuP7USqe552faqmgNgldvJ0z98YIdEY/edit?usp=sharing
First, you fill in the dates of purchases in column A, start filling actual dates from row 3, and put a slightly earlier date on row 2. For example, you first bought bitcoin in 1st of October 2018, type 1.10.2018 in row 3 and 1.9.2018 in row 2.
Then, fill in the amount of fiat you used on column B on the corresponding rows, and the amount of btc received in column C. Then, type the most recent price for bitcoin in cell I2. Now, more or less everything is calculated for you.
Column D shows the effective price you paid, fees taken into account,
Column E is your cumulative bitcoin stack.
Column F Is your stacks fiat value.
Column G is your fiat denominated profit / loss situation.
Column H is the same in percentages.
Column I shows the current value for each of your purchases.
Column J shows the difference between current value and purchase value for each purchase.
Column K shows the performance of each purchase in percentages.
Column L is your cumulative amount of fiat spent.
Columns O, P, Q & R are used for my S&P chart, you basically need to find the S&P price for all your bitcoin dates and fill them in column O. If bitcoin was bought during weekends, use the a nearby price for S&P (Friday or Monday).
That’s about it! Give it a try with your data. Next, lets take look at the charts generated with template above and my data.
The orange line is my bitcoin stack (left axis), always increasing. The green line is the corresponding eurozone fiat denominated value (right axis), recently shooting up, back above 100k again. The black dashed line (right axis) is the cumulative amount of money spent. Average price for bitcoin has been ~8400 €/BTC during my ~5.5 years of stacking.
The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 67 in total. The best buys from 2018-2019 bear market give me a nice +700% return atm while the worst buys during 2021 give me a -50% loss atm. This chart is one way to visualise the asymmetric upside / downside potential of bitcoin. It’s also one way to visualize the doomsday talks of Peter Schiff & co. When these people tweet about bitcoin being down -50% they are solely focusing on the smallish region below 0% line in the chart while conveniently ignoring the rising bars everywhere around their little valley. All in all, bitcoin will give you many emotions. I’m currently simultaneously up +780%, down -50% and up +215%. Bitcoin stacking math.
The orange line is the performance of my bitcoin savings strategy. The blue line is the performance of a similar strategy (money and date wise) but invested in S&P500 instead of bitcoin. In a way, S&P serves the function of a standard performance and we want to see how much better bitcoin performs compared to the standard, rather than compared to an inflating fiat funny money. Current results after ~5.5 years – S&P boomer has got +26% for his total investment, while bitcoin bro has got +217%.
The best savings vehicle ever.
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Affiliate links:
Stack and withdraw at Swan Bitcoin
Buy Bitcoin gear at Coinkite
Just a quick update while we’re still on March, ‘normal’ post coming in April. The price for March stacking was ~22500 € / BTC which means I got another .022 BTC (with my traditional 500€ per month stacking budget) added to the stack that stands at around 4.30 BTC today. The total amount of fiat invested atm is ~35500€ (during 4.5 years), average price per coin ~8300€, +170% gains for the money put in. Charts with short descriptions below:
The orange line is the ever-increasing bitcoin stack (left axis), green line the corresponding fiat value of the stack (right axis), black dashed line the total amount of money put in (right axis).
The bars represent every bitcoin purchase I’ve ever made, once per month since October 2017. Brutal ‘returns’ for the most recent 2 years, but nevertheless managed to stack bitcoin the whole time, which is the most important thing.
The orange line is the performance of my ‘bitcoin retirement plan’. The blue line is the performance of an imaginary S&P investment plan with similar buys during similar dates. The S&P plan would have given +22% for the total money put in while my bitcoin plan has given me +170% for the money put in, nearly a 10x difference while still at more or less bear market territory in the price. I can only imagine how far behind bitcoin is gonna leave the standard (and poor) saving strategies during the next bull market.
That’s all for todays short update! Thank you and sorry, more next month!
-Bitcoin Retirement Plan
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