Stacking ’em Volume 7 (December 2020)

Another month goes by, another salary hits the bank account, another Bitcoin purchase. 500€ of dirty fiat money transformed into the best money humanity has seen, Bitcoin. Bought with near ATH price, 15800€ / BTC, I was able to add another ~.03 BTC to the stack taking the total to ~3.81 BTC. Just like last month, this was the highest price I’ve ever paid for Bitcoin and just like last month, my net worth is at a new ATH.

Whooh, what a month! Price ticking relentlessly upwards. A month ago, I wouldn’t have thought we’d tease the ATH during this year yet. I always thought it’d be broken early 2021. But what do I know. What do any of us know? And what even is the ATH? Some people say, we hit it already. Might be true for a certain exchange. I got no idea but I’m gonna celebrate when we brake 20k, not any earlier. And that too, is gonna be soon.

Flattening the curve is starting to show. My BTC stack is growing at half the pace I’ve been used to during this year. And it’s only gonna slow down more and more as we enter 2021. It’s a bitter sweet surreal feeling tbh.

Missing the days of low prices, looking forward to new highs.

Starting to feel like 4 BTC is the best I can do. Getting that fifth is so far away. Though, it doesn’t really matter, I’ll keep stacking no matter what and we’ll see where it takes me. There’s a mind shift going on however. I used to look forward to every new full BTC – the first, the second, the third. Fourth I’m gonna get still. But after that my eyes are gonna be looking for the next .1 instead. It might seem like a semi-useless amount but imo its a kind of unit bias. We like round numbers and everyone wants to have a whole coin. Its only natural. But if you are new to Bitcoin don’t let it bring you down. Get that .1 and be proud of it. The way I’m looking at every .1 right now is – Bitcoin is going to 1 million sooner or later. Point one is gonna be 100k and I’m living through an opportunity to get 100k with less than 2k euros right now. The best deal ever! Make it count!

Even after 100k, the stacking shall continue and more mind shifts will follow. We are normalising moon numbers all the time. Bitcoin will never be below 10k again, could you have believed this a few years ago? 100k already feels kinda boring and inevitable and it will shock no one next year (maybe unsuspecting normies). 1 million is a moonshot right now. But just like the other moonshots before that, I’m sure its gonna be normalised in the not too distant future. 10 mil feels like too far away to think of yet, but that too is gonna happen during my lifetime. God damn, getting bullish and off the track but what I meant to initially say is – fiat is trash and only good for spending. It’s always a happy feeling making that conversion fiat –> BTC. Therefore, there’s no price I’d not wanna pay to get more BTC. Let’s look at some charts:

The orange line is my BTC stack, the green line is the corresponding fiat worth. Last month was the first time in my life I hit 40k€ net worth. Since then we flew past 50k and right now I’m just over 60k. Net worth growing ten K after 10k, the 100k party is gonna happen soon. And that will only be the start for this bullmarket. God damn it, I’m getting bullish and excited. It’s a bummer the orange line is gonna flatten from now on but it was inevitable and I’m sure everybody feels the same way – they should have stacked more when they could. Well, the truth is there was no way for me to stack more than this =D I’ve stretched it to the max already. Next chart:

The blue bars represent the gains made for each individual BTC purchase I’ve made. Once every month, starting from October 2017. Obviously every purchase is on profit today. On average, I’ve made 160% with every purchase. This info/stat also kinda keeps me going. When I get my salary, do I wanna spend it on some crap or do I wanna make 160% more with a simple procedure. Keep on, carry on. Next:

Here I’m comparing my BTC investment strategy to the performance of S&P. This is because Bitcoin is modern savings technology and S&P is ancient savings technology. The blue line represents a case where I would have used identical money to buy S&P instead of Bitcoin. Total gain for money invested so far would be slightly less than 30% with S&P, and is slightly more than 180% with Bitcoin. Case closed! Save your money with Bitcoin folks.

A few months back I suspected the MicroStrategy stock would start to perform like Bitcoin going forward due to the massive amount of BTC they hold on their balance sheet. For fun, I started to maintain a chart comparing MSTR with GBTC, thinking it would be nice to follow exactly how similar the performance is, and to see if MSTR could even outperform Bitcoin (or GBTC). Chart below:

The chart starts from where I wrote the post. I update the data manually with random intervals because I’m lazy like that and sometimes I forget. So it’s probably not the most useful chart but conveys the idea. During early November I thought its not working as expected when Bitcoin had a run but MSTR did not really participate. But then during the latter part of November MSTR had a nice run and today they stand with similar performance since the start of the chart. I think I’m gonna continue updating this, it’s gonna be interesting to look at with more data. The first impressions are as follows – GBTC reacts quicker to BTC price hikes, MSTR lags. GBTC dumps hard with BTC, MSTR is dump resistant.

That’s all for now! Looking forward to Bitcoin flying past 20k, looking forward to stacking in 2021, buying the top, month after month. Hitting that 100k net worth, hitting that 100k BTC. Next year is gonna be awesome. The best year ever. The face diapers and covidiot bullshit can’t ruin it. Hopefully people wake up and grow a spine / pair. Not likely but one can hope. Remember to stack and never stop.

–Bitster Money Mustache