Does that mean putting the stash in a custodian? 🤔
Discussion
No you put your "stash" into an asset that cash flows. Bitcoin doesn't always go up. I mean yeah it's going up forever Laura, but realistically there are 18month 24 month down turns where your value could be better held or grown elsewhere. Don't use custodians.
OK gimme an example
Okay perfect example. Bitcoin goes to 250k we all know it's going to have a blow off top and start to regulate back towards the cost of production, which is directly correlated to the hash price, when retail bitcoin is the same or close to the cost of production you buy buy buy. As it goes up 3x 4x or 5x the cost of production you leverage out of the position so you can capitalize on that 4x 5x increase if you just hold btc all the way through you lose out on the oppertunity cost of 5x
I just feel that the idea of "never selling" is mis understood. You should never sell the best appreciating asset in your portfolio. 8 out of 10 times Bitcoin is the fastest appreciating asset. But what about the other 2 times? If you don't already have massive cash flow, if you don't have a business built, are you telling me your going to hold onto that loss for 18 months before it starts to appreciate again? Well your only going to get roughly 25% a year. Which is great if you got boatloads. But most of us don't have that. So be smart and put your value in the fastest horse always. And bitcoin will have down turns where it's not the fastest horse.
Capital is meant to be used for more capital. It can't do that in a down turn. I personally like the idea of 5x my capital in 4 years vs 2x my capital in the same time frame..
OK so the golden question is, apart from holding bitcoin where do you suggest?
Anything in shitcoin casino involves custodianism
Anything in defi involves smart contract failure hack syphons
All of that incurs potential impermanent loss, total loss.
Yeah no I am not suggesting the shitcoin casino. You'll get wreaked because it's always a race to see who gets out first.
Basically I'm a contractor and if bitcoin is not performing how I want I can invest in flipping houses or maybe buying and selling land.
But will that land appreciate faster than bitcoin? Somtimes it does. Sometimes it doesn't.
The idea is you find the best preforming asset ( that you understand) and dump your money into it.
But when bitcoin is at 150 -200k it will likely have a down turn l, because the cost of production will be like 44k who in their right mind is buying bitcoin off the retail market when it's 5x the cost of production?
In my opinion people shouldn't be so attached to their capital that they are unwilling to put it in an appreciating asset class that isn't bitcoin.
Yeah I hear you brother, gotta do what feels right for you.
I'm in real estate, when the interest rates were low it was great, now you're better off in the bank with zero hassle imo
Word. This is just a new strategy I'm thinking about. How to capitalize the most on your oppertunity cost.