Stacking ’em Volume 23 (June 2022)

Another month mining fiat at the office, another pay check hitting the bank account, another bitcoin purchase added to the stack! June’s purchase came at a price of ~29520 €/BTC which means I got ~0.016 BTC added to the stack that stands at roughly 4.07 BTC today. Price keeps dropping, accumulation velocity keeps rising. Not gonna complain.

Brutal price action! Just when the dust seemed to be settling after the Luna cluster fuck, we got another one in the form of Celsius. I don’t know if we can blame the crashes 100% on these shitshows or 50% or some other portion but it seems obvious their large BTC stacks and the leveraging they’ve been doing is getting too risky compared to the promises they gave their customers. A scheme like that can work for a very long time if only a few people are warned and want to ‘cash out’. But when the revelation hits too many customers at the same time the scheme breaks down or at least has to do emergency measures / capitulations. If you’re a relatively new bitcoiner or a long term stacker, this kinda opportunity is exactly what you want.

You were not planning to spend your bitcoin anyway in the next few years, so do you want to stack at ATH prices all the time or do you want a -50% discount?

Your own emotions are your worst enemy in bitcoin. You always want to buy after the pump because you believe the pump will continue forever. You also might not actually buy when you get a dip because you want to wait for even deeper dip. Continuous (mindless) stacking is good for keeping your emotions at bay. You are not trying to time anything, so you don’t feel pissed if you miss a dip. I can tell you I ‘missed’ the covid dip (March 2020) meaning I didn’t buy at the absolute bottom. But I did buy all the way, once per month, during that time and also during the bear market (2018 – 2019) before that dip. Looking back, I don’t remember ‘missing the dip’, I remember getting some cheap corn at amazing prices. Few years from now, you and me are gonna look back and feel blessed we got the cheap corn somewhere sub 30k. Seize the day!

Somebody wanted a legend in my figures but I couldn’t make a nice one in Google sheets so you are gonna have to read me explain it through. The orange line is my BTC stack, steadily hitting new ATHs month after month. The green line is the corresponding fiat net worth, measured in euros. The dashed black line is the total money put in, around 30k euros atm. The chart is formed with datapoints from purchases which means this was the situation early this month when I hit the market buy. At the time of writing, I’m actually below 100k with the green line. First time below 100k, after I initially broke that level early 2021.

The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 57 in total. The best buys from 2018-2019 bear market still record over 800% gains on the money. Apart from three purchases, every one since the start of 2021 is currently negative. On average, I’ve made +250% gains on every single purchase. I’m not sure what the purpose of this chart is but it’s a nice visualisation of the stacking journey of 4+ years. I can imagine somebody who started stacking from the start of 2021 could be feeling really down at the moment, but I was feeling the exact same way during early 2019 which in hindsight proved to be the absolute best time for stacking and the best thing that happened to my stacking journey. Now’s the time to make them bars. Focus on being able to buy, not on buying the exact bottom.

The orange line is the performance of my bitcoin savings strategy. The blue line is the performance of a similar savings strategy but bitcoin replaced by S&P500. I made this chart because let’s say there’s an actual hyperinflation event – my bitcoin gains-% don’t tell me too much because the currency itself is worthless. I need to have a comparison with something normal that people are using for similar purposes. If you read the traditional financial independence / early retirement blogs, it’s S&P500 they’re using as their savings vehicle. Seems like I’ve found myself a superior savings vehicle. Even at the time of absolut market mayhem. The chart is gonna look amazing when the next bullphase gets to speed.

That’s all for now! Let’s see how cheap corn the Celsius bros are going to serve us. Eager to see if we get another shitshow next month! The market is very much uncertain but there’s also something that works like a clockwork – bitcoin blockchain and Erbie Stackchain.

-@RetireEarlyBTC

Affiliate links:

Stack at Swan: Swan Bitcoin

Bitcoin gear: Coinkite

Ps. Made my first podcast appearance at Books&Bitcoin, check it out here.