It’s a new year, a new month and a new possibility to stack some sats! As per usual, I use 500 dirty euro bucks fresh from my salary and buy Bitcoin with whatever the rate happens to be: this time it was ~41500€ / BTC which translates into roughly 0.012 BTC and increases my total stack to ~4.01 BTC.
I remember a year ago feeling kinda euphoric going into the year ’21. It was the year 21 of the 21st century and we were going into the phase of the 4-year cycle that had previously meant a major bull market. The previous ATH was broken and the sky was the limit as a 6 figure price seemed inevitable during the year. In hindsight it’s easy to say it all felt too comfortable, too certain. And as always, Bitcoin did what Bitcoin has always done and will forever keep doing:
The unexpected.
In my mind the year ’22 for Bitcoin is now like a blank canvas. Theres no historical trends that we can expect Bitcoin to emulate. In a way, the 4 year cycle is broken. Very excited how its gonna progress. But in the end, it doesn’t even matter. Whatever the price – we stack sats. Whatever the journey – hyperbitcoinization in the end.
Let’s take a look at the charts:
The orange line is my BTC stack, always increasing, lately flattening. Finally I got the fourth full coin. It took me 8 months to stack that last 0.1 BTC with an average price of ~39700 € / BTC. At times it felt impossible to reach another 0.1 with the price increasing moving my target further away. But the dips will always come and consistency as in everything else is also the key in stacking sats. I would say 0.1 BTC is ‘the target’ for a newcomer who is starting to buy Bitcoin right now. Do everything you can to get that zero point one. It’s doable and it will play a BIG part in your future. Back to the chart: The green line is the corresponding fiat value of my BTC stack. Back below 200k euros, sidewayish movement recently you could say, with a potential for big swing upwards during 2022. The black dashed line is the total amount of money put in, around 28k€ during the span of over 4 years.
The bars represent every Bitcoin purchase I’ve ever made. Once per month, 52 in total. Buying Bitcoin is something you need to do for a very long time to see the results. You can call me lucky cause I was around in 2018. But I can assure you that every single one of these buys has been under water and this chart looked very boring for a very long time. Bitcoin is mostly boring but when it pumps, it pumps hard. This is good for the patient stacker. Bad for the impulsive trader.
Here I’m comparing my Bitcoin savings strategy to the default savings strategy of putting it all into S&P500. I made this chart because I used to read the early retirement / financial independence blogs where these guys invest as much as possible, basically exclusively, into S&P500. They had figured out it always goes up and it’s the best way of saving money in the long term. So I was interested in how much better performance I can get with my Bitcoin savings strategy compared to these ‘professionals’. And we all know the result: Bitcoin is the best savings technology known to man.
I’ll end with a thought I had one day: The whole world is already using the same money. There is only one money, let’s call it ‘peso’. You are using pesos, I am using pesos and people in Zimbabwe are using pesos. But just like you can have a common water supply with different quality pipes giving you different quality drinking water. You can have a common money with different quality pipes giving you different quality experience with the money. Right now we live in a world where some people have good pipes to the common money, some people adequote, some people bad and some people don’t have pipes at all. Bitcoin is the best possible pipe there can be and it is equally accessible both to the rich and to the poor.
That’s all for now. I hope you have a successful 2022 and end this year with more sats than you start with. The New Years celebration has faded out but today we have an even bigger party with the Bitcoin birthday. 13 years, Bitcoin is a teenager. Hope you have some sparkling wine left. Cheers!
-ERB
Twitter: @RetireEarlyBTC
Ps. Every time I post somebody asks me where I buy my Bitcoin. I can say that I will not disclose it as I don’t wanna endorse the (local) company that used to be Bitcoin only but now also sells shitcoins. However, if you’re gonna buy from somewhere I can at least try to direct you to a great Bitcoin only exchange.
Affiliate link: Swan Bitcoin
You must be logged in to post a comment.