Another month, another salary, another Bitcoin purchase! The price paid was 28190€ / BTC which means I got ~0.017 BTC (with my 500 eurobucks) added to the stack that stands at ~3.86 BTC today. This was yet again the highest price I’ve ever paid for Bitcoin. Four such purchases in a row now (in other words, 4 monthly ATH closes). I fully expect this trend to continue during the year. Some guys buy the dip, I’m buying the tops it seems. Measured In Eurozone fiat I’ve been hovering around the 100k mark during January. 100k was a major milestone ever since I started this journey and has been on my radar for the past 3 years. Now that its accomplished and the champagne down the throat, 200k sounds like an easy grab and therefore I’m setting 500k for my next major milestone target, confident to hit it later this year.
Seems like we got our first major bull market correction in January. It was pretty much a non stop go for higher prices during December and early January so it makes perfect sense and in retrospect should’ve been expected. But the way bull market wires your brain, you never truly expect a correction (at least I don’t). The pull back was ~30% and in line with the corrections from the previous bull market (for example Sep 2017 from $4800 to $3200). So we should expect to have similar corrections along the way during the year, and the eventual top will feel the same – that’s why its impossible to sell the top. So don’t even try.
One thing I thought about while watching the dip and not having dry powder:
As said in the previous post I used all my dry powder to stack at the start of the month (as I always do) with a price of 24690€ / BTC. That was more or less the absolute bottom of the dip we had last month. So If I would have saved some dry powder to wait for a dip and caught the falling knife perfectly, I would have got the same price as I did with my brainless stacking strategy. I realise I was lucky to have the ‘salary date / price chart’ – relationship in my favour but nevertheless it makes me feel like waiting for a dip is kinda useless.
Constant stacking = front-running the dip
Fiat also feels shittier by the day. Not sure if it’s because of the way of the world or because of my ever increasing Bitcoin knowledge / Bitcoin confidence. Nevertheless, it’s a fucking hot potato in my hands and I can’t wait to get rid of the dirty euros. Doesn’t matter if BTC is at an all-time high – I wanna buy, I’m gonna buy. Let’s look at some charts:
The orange line is my BTC stack, ever increasing, unfortunately flattening. The green line is the corresponding fiat worth (in euros). The dashed black line is the amount of fiat invested (thank for the recommendation for this line from one of you readers). From the dashed line we can see that even last year still there were times when I was hardly having any gains from my investment (corona crash). That’s more than two years of constant stacking mixed with frugality and with little or no positive results. Makes me feel you’re not gonna make it if you are for quick gains and lack the confidence in your strategy and in Bitcoin in general. This 2+ year period was also the most important phase of my journey with majority of the Bitcoin stack gathered during this time. That was the work that had to be put in, the launchpad that’s needed for success and now I’m reaping the rewards. Fully deserved. Next chart:
The bars represent every Bitcoin purchase I’ve ever made, once per month, 41 in total. Obviously I’m on profit with every single purchase, the best buys were made during the bear market with gains of 800%+ on one of those so far. On average I’ve made +350% with every purchase. I’ve said it before but this kinda data is what keeps me going eventhough a 500€ might seem like an insignificant addition at this point. Basically, do I wanna turn that 500€ into 2250€ with a simple trick? Yes I do and that’s what I’ve been doing the past 3+ years and that’s why I have a stack at this point. Not gonna stop. Next chart:
The orange line represents the gains my BTC savings strategy has given for the total amount of money I’ve put in. The blue line is a corresponding performance of an S&P500 strategy had I used that instead of Bitcoin as my savings vehicle. Bitcoin has given me nearly 400% gains for the total amount of money put in, whereas S&P would have given a measly 30% gains. Bitcoin is overperforming the boomer savings tech by more than 10x (and this is only the beginning). I feel sorry for the (old) people who are unable to understand Bitcoin and miss out on the best savings technology ever available to mankind. One more chart:
In September I wrote about MicroStrategy after their announcement of the BTC purchases. I was expecting the MSTR stock to start to perform similarly to Bitcoin and started to maintain a gainz-chart with GBTC and MSTR. The chart starts from the date I wrote and published that post. In general GBTC had been the better performing asset of the two but MSTR made some nice comebacks and the recent month has been huge for the MSTR stock. During these months they have of course also added to their initial stack so you could think of the MSTR stock as an automatically compounding GBTC. Nevertheless the current situation is almost +400% gains for MSTR while GBTC is sitting on a +220%, quite a big difference to the favour of Saylor. I have no horse on this race as I’m not a stock guy, but I’m pleased to see this Saylor company do well and especially when compared to GBTC because Barry Silbert can go fuck himself.
Thats all for now! 2021 started with a boom, 11 more months to go. Gonna be amazing year. Keep on stacking folks! In Bitcoin, there are no shortcuts.
-Bitster Money Mustache
Twitter: @BitsterStacker
Ps. I really appreciate the comments some of you have made below these posts. Unfortunately, the ratio of human / bot is 1 / 1000. I decided to make it more difficult for everyone, might turn it off altogether. Let’s have those discussions on Twitter!
