Oddbean

So, ever wondered the size of the stack you need to reach to be able to live off it indefinitely? @Jeff Booth says if you can life of 5% of your #bitcoin stack, it should be sustainable, so 2023 median annual US income $48k, round up to $50k, so, if that is 5% of your stack, you need $1 million stack!! But the question is, what happens if price falls after you start living off your stack, you eat into your capital? Surely the worse case scenario would be to get to an all time high, see you’ve reached a million, say GFY to your boss only to see the value of your stack plummet. Let’s run the numbers….. If you made it in 2017, your million dollar stack had nearly 52btc, even after the 2018-2019 and covid crash, you’d still have 26.3btc today (you’re gonna make it) If you made it in 2021, you’d have stacked 14.8btc, and today, after living a relatively frugal, but free life for the past 31 months, you’d still have a bag of a little under 10.8btc (620k), no Saylor stack, but when things start running, you may even be able to up your living expenses Compare this with getting into bonds after the GFC, collecting a 0.15 coupon, you’d have needed a $33million stack to live off, and then your capital would have been destroyed with rate rises. Just a thought. Now, just look at your house, do you have enough equity in it to buy 10btc to catch up with our friend from 2021? Could you downsize your current place to buy some freedom? Oh yes, the dream just got a little closer. https://m.primal.net/JNyc.png https://m.primal.net/JNye.png https://m.primal.net/JNyf.png