Another month mining fiat at the office, another salary hitting the bank account, another bitcoin purchase added to the stack! July’s price for me was around 19400 €/BTC which means I got ~0.025 BTC added to the stack that stands at ~ 4.10 today. That’s another .1 milestone hit which almost feels like getting a full coin few years ago. Many times I get comments like ‘why do you keep stacking when you’re not gonna make any real difference to your stack anymore?’. I understand where they’re coming from but on the top of my head I’d say there’s two reasons:
Firstly, are you gonna just sit on your lazy ass and wait for something to happen you have no power over (the price of bitcoin)? Or are you gonna spend your time doing your absolute best and getting the prize after some hard work only when you finally deserve it? Many times the journey is more important than the goal. How you get it is more important than what you get. I’m gonna fight for bitcoin and fight for my freedom as hard as I can. I’m gonna keep stacking till the end. Bitcoin is a way of life.
Secondly, let’s say my stack reaches 1 million euros and I decide to quit my job and sell some bitcoin to live for the next 12 months. Selling bitcoin would suck, really bad, anyway, always. But it’s a necessary part of my plan to step out of the fiat hamster wheel and get some protection from my bitcoin stack. So the way I’ve been thinking about the most recent stacking is: This is the bitcoin I can sell with clear conscience. In a way, I’m currently stacking to another mental bitcoin compartment and my ‘forever hodl’ is already ready in another compartment. I’m about ~10x away from the predetermined goal which is a 1 million stack so every 500€ I stack right now becomes 5000€ of licence to spend fiat later.
This is a good segue to another topic I get asked a lot: “How’s the early retirement gonna look? Are you gonna sell some top? Buy stocks? Get yield? How are you gonna live off your bitcoin?”
The ‘normal’ early retirement folks plan to sell about 4% of their stocks every year and count on the rest appreciating at roughly +7% per year. So, in theory they can live forever off of their stocks and even get more spending budget every year as the total keeps going higher (and thus the 4%). My very first bitcoin noob plan was actually to sell all bitcoin when my stack would be 1 million, then buy S&P500 and go with the above plan. But, soon after falling down the rabbit hole, I understood it’s not wise to sell bitcoin for another asset. So the next iteration of my ER plan was to sell ~5% of my stack every year and count on bitcoin to appreciate more than that, forever. The current compounded annual growth rate (CAGR) is somewhere above 100% and I think this might actually be a good enough plan for the foreseeable. However, when I did some calculations it hurt my soul kinda bad to realise that even if the fiat denominated amounts would be golden, the actual bitcoin stack could fall kinda dramatically in 10 – 20 years doing this kinda plan. So, constant selling does not feel like a solution.
Early retirement in my mind is not sleeping long, sitting around all day in coffee houses, travelling for fun etc. leisure. It is freedom from the necessity of a job / boss, and freedom from the stress of bills you need to find out a way of paying. I’m planning to actually have some useful skills and perform them in a way that gives my life a purpose and eventually, naturally, income. But instead of stressing about starting a company and having to get income immediately, I can rely on bitcoin having my back and master a skill or two and watch it ‘automatically’ evolve into a self sustaining business lifestyle. That is the plan. Bitcoin for me is just the ultimate resource for self sovereignty. It can take 1 year, 5 years or 10 years before I’m successfully creating enough income. Bitcoin stack shall have my back until then.
Let’s look at the charts:
A new all time high! In sats. Back below 100k in the fiat. Feels like a bottom, but I’ve been constantly wrong before =D so don’t count on my guesses. Doesn’t really matter though, the stacking continues whatever the price, with a higher pace with a lower price. I think of Bitcoin as the Atlantic when leaving Europe for the new world. It’s gonna be stormy, but we knew it already (or should have) when hopping aboard. Some of us will not make it to the destination. But for the ones who do, it will be worth it.
The bars represent every bitcoin purchase I’ve ever made, once per month, starting from October 2017, 58 in total. The best buys from early 2019 still record over 500% gains while the last 18 months have given me losses for every stacking ranging from -21% to -63%. So, I would have gotten a better performance for my money during the last 18 months by piling them in to a bank account. But this is the case always with bitcoin – you will be tested by being put under water. You will not know it before hand so you can’t prepare and the only way to avoid it is to not buy bitcoin in the first place. No free rides, deal with it.
The orange line is the performance of my bitcoin savings strategy for the money put in. The blue line is the performance of an imaginary S&P500 strategy with similar purchases during same dates. Here, I’m just trying to compare how it could have been had I not found and chosen bitcoin as my savings vehicle. Somebody somewhere is trying to save money with 500€ per month put into S&P and he would have gotten only +18% for the money put in after almost 5 years. Thats probably less than the compounded real inflation during the past 5 years. My bitcoin strategy on the other hand, even after a huge crash and a possible cycle bottom, has gotten me around +150% for the money put in. There simply is no competition for bitcoin as a savings vehicle. Feels like a store of value for me.
Thanks for reading, enjoy the summer and don’t forget to stack your share of the discount sats!
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