Stacking ’em Volume 28 (November 2022)

Another month goes by grinding at the fiat mine, another salary hits the bank account, another Bitcoin purchase adding sats to the stack! The November price was ~20900 €/BTC for me which means I got roughly 0.024 BTC added to the stack that stands at ~4.20 BTC today. I vividly remember hitting the 4 full coins almost one year ago near the top, thinking I will never be able to get 5 full coins (because we would surely go to the six figure price soon). Even the 4.5 mark felt unachievable. Today, I feel confident in my possibilities – always a silver lining in Bitcoin price action!

Good god. What. A. Shit. Show! I really thought the Luna, Celsius, 3 Arrows etc. collapse was as bad as its gonna get. Though I did say back in May I expect even BlockFi to eventually burst in flames, I did *not* expect it to happen anytime soon. My condolences to anyone affected. FTX is something I’ve not even realised happening. Few times I saw the hairguy on a news clip and thought this is some fiatbro I don’t need to know about. Came as a total surprise to learn they were the 2nd largest exchange in the world. It means many people are affected, probably some of you readers too. It sucks really bad and I feel sorry for you. But you can’t say you haven’t heard people saying “don’t leave your coins on an exchange”. You just thought it’s not urgent or not affecting your exchange of choice. In this case, turns out you didn’t even have the coins on exchange. You just sent money to them and they updated your screen. So, ‘self-custody’ is more than holding your bitcoin yourself. It is:

  • making sure you actually have the bitcoin
  • making sure your exchange actually had the bitcoin
  • making sure there actually is only ever going to be 21 million bitcoin
  • making sure when you need to move your bitcoin you don’t need to ask for permission.

Some people have wrote about the hairguy that he was “one of the most intelligent people they have met”. I have heard him talk only a few times on some podcast clips but to me he sounds like a retard who cannot form a thought properly. He also looks sick and visibly shakes. Literally zero reason to hold this guy on a pedestal. Complete fiat clown world shit. Possibly made up to make you send your bitcoin to him. Seems to have worked.

Anyway, if this scam didn’t blow up we would have a ‘regulated’, trusted, ESG compliant, mainstream best buddy selling you bitcoin that doesn’t exist & funnelling taxpayer money to politicians. So, I’m very glad they got exposed. Sorry that you lost your money. Glad that the scammers got exposed. Always a silver lining I guess..

The orange line is my BTC stack, reaching a new ATH every month, rising with a steeper curve recently. The green line is the corresponding stack value in eurozone fiat, crashing hard for the past 12 months. The black dotted line is the total amount of fiat spent, mostly 500€ per month, few exceptions that have been mentioned on the blog (bonus etc.). The chart is made with purchase prices so the situation right now is a little more dire (-20% or so). Let’s see how low its gonna dip. My time horizon is so that in the best case I think I could reach the target (1 million) around 2025 (year from the next halvening). So, the current dip is purely unemotional stacking season for me. I have already learned that the road will be rocky. I have experienced similar crashes before. I was not going to touch the stack anyway anytime soon. Bring it on!

The bars represent every bitcoin purchase I’ve ever made, starting from October 2017, 62 in total. The best buys were made during the 2018-2019 bear market that give me around +600% return for the money still. Nearly all of the purchases made during the last 2 years are at a loss today with the worst buys around -60% for the money. In hindsight you could say I should have waited instead of stacking. But with that kinda mindset I would have surely missed the stacking completely in 2018-2019. With Bitcoin you don’t try to be clever.

If you do, Bitcoin will humble you.

The best way through a long bear market is to stack consistently and not even dream about trading ‘the bottom’. This way you can actually forget about the market and keep you sleep rhythm / mental health. The bear market will be over before you know it because you are not constantly obsessed about it. Give yourself long-term target, how much bitcoin you’d like to have in 2 years or 5 years? If you’re not gonna sell for many many years, why would you care about the short term price action? Focus on mining that (eventually) worthless fiat, and being able to stack through this amazing stacking season that might not repeat during your lifetime.

The orange line is the performance of my bitcoin savings strategy. The blue line is the ‘reference strategy’ of putting similar amounts into S&P every month. Here I’m basically comparing how much better bitcoin is as a savings vehicle when compared with S&P. There are many people who are using S&P index funds as their savings account. This is the norm. Bitcoin will be the new norm. My bitcoin strategy has given me ~160% gains for the total amount of money put in. Corresponding S&P strategy would have given a measly 20% gains for the money. Therefore, the bitcoin savings strategy is approximately 10x better than the S&P strategy, even at the bottom of a brutal bear market. Somebody tweeted recently that if you bought bitcoin in December 2017 you’d be down -20%, whereas if you bought S&P instead you’d be up +50%. True, and impressive numbers for the S&P but if you bought every month since December 2017 instead of a lump sum, the numbers change completely as you can see above.

That’s all for now! I wish you happy stacking and great strength for ye hodlin’ hands. Take care.

@BRetirementPlan

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