Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by philipma1957 (1)
By the way, maybe I remain somewhat bothered (molested, no homo) by your statement about cashing out once a year because I have also seen you make statements in the past about cashing out and living on that cashed out amount for 5 years or 10 years or something like that, and I just find that kind of psychology (or even financial management) to be a wee bit problematic and even lacking in confidence in terms of figuring out how to manage your cash in such a way to largely keep yourself in bitcoin rather than so easily defaulting into getting into cash (or cash equivalents) for extended periods of time.
Thanks for the link, did not realize it was already there. Also found the other ones that use 200 week and 1458 days (4 years?) ... might be simpler as a general gauge.
Yes.. it will frequently be helpful for you to gauge in ways that are understandable to you, and then surely sometimes the differing ways of gauging could lead to differing conclusions, too... perhaps?
The reason for cashing out, is because most things in life are currently paid in fiat, and most banks will not accept payment in bitcoin for the usual stuff like mortgages, rent, groceries. Some will. Or you can use those bitcoin debit / credit cards. In many cases, you can probably do that and spend what you need.
I will agree with you that in current times, I do tend to project my cashflows out 18 to 24 months in advance, so surely there can be some value in having more concrete (rather than floating) numbers in there. Guys (and gal) will find their varying levels of comfort. By the way, sometimes when I might have an incoming cashflow that varies between $500 and $3k per month, I will end up using the lowest of numbers rather than averaging because I do not want to get caught with my pants down, but if the projection is further out, there tends to be more abilities to be a bit loosey goosey about it.. so maybe the first six months will use more solid numbers and then the subsequent 18 months might use averages that end up getting tweaked more conservatively once they fall into a closer timeframe. In other words, you do not necessarily need to have all of that money already in cash in order to have a decent amount of security that either the money is coming in or you have a back-up place that you can get the money if there is some short-falls here and there along the way.
I just find that having an annual or some other periodic amount (maybe monthly or quarterly) makes it easier to stick to a budget, otherwise, if you are way above FU status, then you don't really care and can do it any time, keeping in mind you're not buying a lambo every week or something crazy.
For sure. Going into FU status would not necessarily save anyone from stupid-ass decisions of 2x or 3x spending, if that might not be accounted for... sure, maybe there is a petty funds account that allows for a few extra hookers, lambos and blow every once in a while, but if all that is outside of the normal budget, then there would likely be a need to refigure the whole matter in the event that you might want to add those things to the regular expenditures and to verify that everything is still cool in regards to the various tolerances within your overall budget.. or what is tolerable or whatever over whatever time period that might be considered for such extra expenditures.
Elwar has mentioned having cash reserves of about 4 years. I've seen other finance bloggers state they have between 6 months to 7 years worth of cash (not invested in anything, certainly not in bitcoin) and top that up regularly. That also gives you what some call a "cash cushion", in that if its a bear market, you still have some cash left to spend without touching your coins (or maybe buy back some, if you're still in the game or want to play). 6 months to 1 year, I would consider as "emergency cash", where it sits in your fiat / dollars in some readily available account.
Of course some assets are more liquid than others, so even some people would consider bitcoin in their cash category based on how liquid it is, and sure whether you keep that value in a separate account and it stays in bitcoin until you need it might be another consideration. Each person can surely have their own ways of categorizing assets in terms of how liquid they are and how volatile they are, and if the whole budget of fuck you status is already accounted for (let's say something currently like 200+ BTC), then there could be another equivalent of 30 BTC that is just fuck around money that is kept in various ways.. maybe in BTC, maybe in cash or maybe in some other assets that are somewhat liquid in the sense that some of the funds might take a week to get at and other funds could be made available within 1-3 days.. and surely, there could be some anticipation that the extra 30 BTC that are floating around is likely to last for several years (maybe 4 years or so with a round about budget of anticipating to spend about $100k per year) no matter what is done with them and whether they go up or down or whatever, and they are considered as a kind of cash floating balance that is separate from the main assets (the 200+BTC or whatever else that is held separately).
For us coiners, this may be something like maybe one of the stablecoins, if you don't like the cash sitting in your fiat bank account.
Fuck stable coins.
Even the most bitcoin maximalists that absolutely hate shitcoins understand that stablecoins don't exist as their own on their own blockchains, but on top of "platforms", which include all those smart-contract shitcoins like eth, ... sol? ada? poly? tron? ... at least the stablecoins are attempting to stick to as close as it can to the US dollar.
Oh gawd..
you are going there?