Another month grinding at the fiat job, another salary hitting the bank account, another set of sats stacked to the pile with the usual style (500€ purchase every month). Julys price was 28400€ / BTC and 500 units of dirty eurozone fiat was transformed into the best money humanity has seen, Bitcoin. I was able to get ~0.017 BTC and the stack stands at roughly 3.93 BTC at the time of writing.
Few months ago I was ‘worried’ I might not be able to get that 4 full coins very soon (if at all) because the price kept rising too fast. But now, if the dip’s gonna continue like this I’m gonna shoot past 4 full coins in a few months. Not that I’m actually hoping for a bear market or continued consolidation, but definitely a win-win situation as it always is with a Bitcoin purchase.
Recently I have found myself kinda surprised that some folks think we reached the local top of the epoch already and are heading for a bear market until the next halving or so. For me it has been more or less obvious that our bullrun will last for the remainder of the year and 2022 we can start to talk about the bear market and how its gonna look like. Of course, I don’t know how its gonna pan out but the bearish sentiment caught me by surprise. I started my Bitcoin journey in October 2017 so I don’t know how it felt like during the summer of 2017 for example. From June to August 2017 there was a 2 month period when Bitcoin was more or less flat and I bet many people thought the top was in. Now or course, we are 5 months in if counted form Feb when we first hit these price levels. In 2013 however, there was a 6 month (April – October) consolidation before the bull market hit full gear at the end of 2013. So lets wait for one more month and see if we can find resemblance from 2013.
Though, it has to be said that this is only the 3rd bull market following a halving and its pretty naive to assume we will follow one (2013) or the other (2017) trajectory from the past. More and more it seems like Bitcoin is gonna do what it always does:
The unexpected.
The orange line is my BTC stack, nicely approaching 4 full coins. The green line is the corresponding fiat (EUR) worth of my stack. When the fiat value dumps, the orange curve takes pace. The orange curve will only flatten if the fiat curve shoots up. A win-win if I ever saw one. The dashed line is the total amount of money invested, roughly 25k€ atm.
The bars represent every Bitcoin purchase I’ve ever made. Starting from October 2017, once per month, 46 in total. Only four purchases are currently at a loss, all done this year. The best buys were done during the bear market, early 2019. On average, I’m up 310% on every purchase. Bitcoin is a long game and this chart aims to paint that picture. You need to grind many years to be able to look back on your Bitcoin buys and feel good about your strategy. Believe me, at the time of doing these 2019 best buys, I had already been stacking for more than a year and was at a loss regarding total money put in / the value of my stack – certainly didn’t feel like a genius. In fact, felt like I should have waited for some kind of bottom before starting to go all in (textbook knee-jerk) but of course that would have been impossible and if I would have tried something like that, I only would have totally missed the best period for me to stack. So:
Don’t wait, the perfect time to stack is always right now.
Here I’m comparing my Bitcoin savings strategy to the standard (and poor) saving strategy of putting it all into S&P500. Atm, Bitcoin has given me a total of 340% return on the money invested while S&P would have given only 44%. The S&P strategy is of course less volatile and has been only going up lately giving less headaches for the investor. Bitcoin is obviously more volatile and I’ve seen 50% of my (paper) net worth ‘melt away’ during the past 4 months. This is the price you pay for superior returns on Bitcoin. No free lunches.
Euro finals tomorrow. Great weather. Summer holidays. Happy stacking and have a great summer, folks!
-B
Twitter: @BitsterStacker
