What Is Your Bitcoin Escape Velocity Point?
Hey Jessatoshis
We've just gone through one of the biggest corrections in quite some time, and it's a good reminder that the wealth you have on the screen is not a given; wealth is all relative to what you can exchange it for at a later date. I have found that I am a pretty shit investor, and like many humans, I am kind of tired of working for money that continues to lose its value and getting attacked by inflation and tax.
It doesn't seem like much motivation anymore to earn anything when most of it gets taken away. I know I need to cover my bills and keep a roof over my head, but other than that, I can't bring myself to bust my ass with the idea of that nice holiday or that brand new car or some other shit.
So these days, my strategy is pretty simple, work as hard as I normally do and buy as much Bitcoin as I can afford and hope I am making the right choice. I have no time to research shitcoins and take on any more hail maries than I already have with Bitcoin.
My HODL years
Since I've been in Bitcoin, I've seen lows of $3000 and highs of $60 000, and I've bought at both those prices. I honestly don't calculate how much I spend on Bitcoin, if I am in profit, how much I am in profit because I don't plan on selling it anytime soon. My goal is to get as many Satoshis and full Bitcoin as I can.
If anyone comes looking for it, I lost the Bitcoin in an unfortunate boating accident. So even if I am internet rich, I am real world poor, and that's okay with me. I've been poor for as long as I can remember, not going to change much for me, really, so what do I really have to lose here?
So Bitcoin goes to zero, and I lose thousands of dollars worth; I would lose it anyway by saving it in fiat, lol, so the same result different steps.
Reaching escape velocity range
We all live different lives, want different things, earn in different currencies and have different income potential. I've been stacking my sats, and I thought it would be interesting to set a floor where I need not stack sats, but I would still regardless.
So I took how much Bitcoin I have right now, looked at my current salary, multiplied that by 50 years, which would take me into my 80s and then divided that value by the amount of Bitcoin I have right now. So for me to maintain what I am on for the next 50 years, I would need Bitcoin to break through and maintain a $300 000 range.
At this range, I could withdraw from my Bitcoin holdings each month the salary I have now for 50 years and never have to give a damn about working again in my life.
Sure, I would have to factor in the cost of living increases and all that other shit, but I mean, if Bitcoin continues to grow above inflation, it negates that calculation. It means that at the $300 000 level, I have perpetual protection of a certain quality of life.
So do I think Bitcoin can reach that level? Yes, I do, perhaps I am biased if plan B's stock to flow model holds out that target will be closer than you think and by the 2024 halving it could be solidified and secure my early retirement.
Again, we never know with Bitcoin and this is just me spitballing ideas as I try to throw what's left of my salary to catch some of these dips.
So I'm keen to hear, at what price point would Bitcoin retire you?
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
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I think BTC is a dog, I bailed when it first got over 40k and am running with Cardano instead.
It may go up again, but it's not a basket I'd put too many eggs in
We all have to make choices and accept the consequences of it, I don't care much for ADA but I am not the market, I am just making the choice I feel will give me the best return
I wish others well with theirs but I just don't have the time to look at every coin under the sun, I have looked at ADA and I wasn't really convinced
I'm not really convinced by any of them, but especially not Bitcoin - just here to make hay while the sun shines and get out on the biggest pump before they all crash - crossing fingers right now!
My plan is to leave my bitcoin to my children and supplement my retirement with the income from it. Initially I was thinking I would take out an amount each year that was just below the capital gains tax threshold.
The more videos I watch about how the rich stay rich the more I think I want to work out a way to loan it out safely and take that approach. It's all a bit new so I can't even remember what's it's called.
Someone wrote a post yesterday who is doing just that and nearly got caught out with the dip so I will be reading that carefully for tips on how to manage it with as little risk as possible.
I am not greedy so just loaning out a small amount should would for me.
However, it's all early days and who knows what will be an offer by the time I retire. I'm taking my time. 😂
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Well If I look at those that got in super early in BTC and are now retired and giving back by creating content, books, podcasts doing what they love I can't help but want something similar for myself
The loan thing works, if you still have an income to service it, so yeah I do like the idea but then ill have to go buy an income generating asset like a home I can rent. Makes it a bit more complicated, my idea would be to find a crypto friendly country move there and live on my fiat while I want for Bitcoin to continue to increase and try to work with that and draw down when I need it
I don't think it works like that. I think it relies on the value of the asset going up and then paying back the loan based on that. But you have to get the balance right between the assets you keep back and those you loan against. I'll have to rewatch the video that laid out the numbers.
Living in a crypto friendly is probably not an option for me. Although I had thought about being here for 6 months of the year and then renting out the house and travelling for the other 6 months. That was an idea even before I got involved in crypto.
Any way there are so many possibilities and way more to come I think.
!ENGAGE 20
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ENGAGEtokens.I don't exactly know but I do plan on selling half of my BTC at some point. The other half is expected to just sit there and I will only touch it if I really need to. Since I don't exactly have that much in BTC, I am unsure when it would really be considered escape velocity for me.
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Just using your calculation, BTC would need to be over $1.25 million per coin for me lol! So I guess I need to keep acquiring and these dips are helping out! I'm past the BTC event horizon, there's no returning to the fiat world for me at this moment!
Oh man, yeah I am not waiting for 300k to come around, I am trying to chip away at it while I can to reduce the need, and buy back more years. If I can do it at 250k even better. 1.25 mil a coin is nuts and that's a long time,even with the current path, your living expenses are nuts man.
Yeah I'm just trying to build up the BTC stash in the first place to be proactive rather than wait for it to come around.
I could probably redo the calculations based on my actual salary vs the average for the UK but damn, south East UK ain't cheap! Having said that, if I worked it out based on my actual expenditure each month, I could probably have a lower BTC price target.
I’ve looked at other countries that are more developed and Honestly I don’t have much hope of every affording that! The moving and getting set up with kill my capital and then I’ll just be back to square one so what’s the point really?
I guess downscaling is still an option for you I’m well fucked by my maths
Thing is, London and the south east (and to an extent, I guess Manchester) are the most expensive places in the UK from what I can tell. You get outside that area and go further north or west, things do get cheaper but really, you will get hammered by taxes and everything else under the Sun here!
Don't know if you looked in to other countries mentioned on CoinBureau's latest vid? He covers quite a few countries on his list of places to move to that are crypto friendly.
I have a little different strategy. I always take out my initial investment as soon as it grows to a significant value. For example if I invested € 1000 when BTC was € 3000 I would withdraw €1000 as soon as BTC hit €6000 mark.
This way I am hedging myself from any future lose. I know this means less returns as you sold half the share you own but I am ok with that as I want more peace of mind. Now It does not matter if the price go up or down or how much up or down. I am still in profit (unless BTC drop to €0).
You just need to know when you want to take out ur initial investment 👍
!luv 1
Yeah I get you, you're playing with the houses money, but the Euro isn't really devaluing all that much as other currencies like my own. South African rands are being obliterated so I don't get any value out of taking my out my money it's just 1 another tax burden and 2 its a in ice cube melting, sitting on it is a complete waste of time.
If I was earning Euros sure I could do that or take it out into a stable coin but again, taxable events and I can't exactly spend euros or dollars here yet, they got us locked in. Until we have crypto cards here it's kind of pointless
I think that 300k range would be my breaking point as well. I don't have enough BTC that I could live off of it or anything, but it is enough that I wouldn't really feel too badly about cashing some of it out. I am a bit more heavy in alts than you, and that is where I think the majority of my crypto wealth will probably come from.
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When US President Elon Musk actually declares Dogecoin the world's Reserve currency! Maybe not. $200k sounds like a nice price point for me.
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LOL if he does then shit I better start stacking doge! 200k is pretty early and does work with Canada cost of living?
To be fair, I’ve seen these ups and downs so many times that it’s already boring to me ... after every catastrophe like this, the value of BTC has gone up, so HODL is my variant, not financial advice because I don’t give them 😎
Personally I don’t see what I would do cashing out and giving up on Bitcoin! Until someone can put an argument together on why I shouldn’t I’ll keep hodl’ing
Oh. I know exactly what I will do when BTC reaches a certain limit (it hasn't yet) ... I'm like Martin Luther King ... I have a plan! 😎