Grinding the fiat job for another month in order to stack them sats again. As per usual, I take 500€ off of my salary and market buy bitcoin with it. This time the price was ~ 37200 €/BTC which means I got ~ 0.013 BTC added to the stack that stands at ~4.06 today. Missed the mother of dips since I always buy at the beginning of the month =/ but it’s anyways a celebration for me as I hit another ATH – an all time high in sats that is! This is a recurring ATH and a fool proof way to keep winning month after month – free advice.
Boy, what a shitshow! Feeling for the poor souls who got greedy or shitcoiny and lost ‘it all’ or at least a major amount. This is why I many times say, also in this blog, “don’t trade”. This is why Matt Odell says “stay humble, stack sats”. There simply is no get rich quickly in bitcoin, but there most definitely is a get rekt quickly.
I’m no expert on the details of what happened but I remember when I first heard about this Terraluna thing not so long ago. Pretty soon they had bought a bitcoin reserve of ~ 1 billion dollars or something ridiculous like that. Comparable amounts to what MicroStrategy has. But MicroStategy bought their coins with money that they had accumulated through hard work during many many years, and with loans that are payable by their profit generating business, and stacked over almost a 2 year period. And Terraluna somehow bought theirs in the matter of weeks out of nowhere by simply creating more shitcoins to this world? There are no shortcuts in bitcoin and imo this is one grandiose example of that. If you want to have bitcoin – earn it. Work for it or work for fiat and buy with your earned fiat. Don’t try to ‘innovate’ roundabout ways to get free bitcoin. Bitcoin is the ultimate truth which among other things means you cannot get it without putting in the work. So stop trying to get rekt quickly.
Almost every time I share these posts, someone asks why don’t I put my bitcoin ‘into work’ and generate yield with my stack. Well, you and me both know that since bitcoin is limited in quantity, there cannot be an ‘actual’ yield in bitcoin (imagine 21 million bitcoin deposited on accounts earning compound interest). What you are doing is lending your bitcoin to someone who is lending it to someone else with a higher rate and either it is being used to short bitcoin or somebody somewhere generates shitcoins that hopefully still have value when you are trying to get your bitcoin out of the yield machine. I have no doubt that even the ‘legitimate’ businesses like BlockFi will someday burst in flames in a spectacular manner. The lunatics were promised a 20% interest for holding luna. You are getting promised an X% yield by losing control of your bitcoin. It’s not gonna end well.
The market continues crash to 30k as it has been doing since early 2021. I have no evidence or competence for analysing why that is, but a hunch says we are in a “Retail Rekt Loop”. As long as people are greedy enough to gamble with leverage longs, we are gonna see crashes that will liquidate the gamblers. But each crash seems like a good opportunity to jump into a leverage long position, so it repeats again and again. It will stop when enough retail is rekt and nobody is willing to gamble anymore. The loop is basically big boys accumulating on the expense of retail. When the gambling is done, accumulation is done and only then shall the rekt loop end.
Let’s take a look at the charts:
The orange line is my BTC stack, reaching a new ATH every month. The green line is the corresponding fiat net worth, measured in euros. The dashed black line is the cumulative amount of fiat put in (~30k atm). The green line is plotted with my purchase price this month (before dip), and at the time of writing it is ~115k€, so theres a pretty hefty dip missing from the chart, also in the future (especially if we go back up before next months purchase). The chart is made with monthly purchase data points and gives an overview, another dip missing worth notice is the May 2020 crash which actually took me ~ -15% below the dashed black line.
The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 56 in total. The bars from the past 16 months (the sideways market) are between +/- 30%. Someday they’ll look like the 2018 – 2020 bars look like atm, and I’ll be stacking in another sideways market but this time with a six figure price. Consistency is the key.
The orange line the performance of my bitcoin savings strategy. The blue line is the performance of the standard and poor strategy of putting your money into S&P500. I made this chart because I used to read a lot of the early retirement blogs, MMM etc. They all mostly buy S&P because its a fool proof way of getting yourself a 7% annual gain (long term average). I was interested to compare my strategy to theirs, as in other ways they are similar. We save money, buy each month the investment vehicle of choice, aim to grow our stack until retirement. I’m feeling like I’ve found some cheat codes.
That’s all for now! Hopefully you didn’t get burned by the crash. Hopefully you have some fiat to buy the dip, and hopefully you’ve perfected your hodl and dedication with the experience you get from these market crashes.
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