Could you explain more about how bitcoin compounds value to me a bit, i would really love to understand.
Can't you already see the idea of compounding value within my previous discussion and pointing out 8-9 doublings of the BTC price since 2015? The idea of compounding value should be clear from looking at the numbers, no? which part is not clear?
Of course it is not guaranteed to continue to happen.. but if you happen to have some understanding how bitcoin is more scarce than fiat currencies (and likely more scarce than any other asset or currency in the world), then you also might understand why bitcoin is likely to continue to have ongoing compounding value effects.. even though, again, it is not guaranteed, so we should account for how compounding takes time and likely to continue to take time..
and I personally like to look at the 200-week moving average rather than spot price in order to also see how the 200-week moving average (which tends to the the bitcoin price bottom) continues to go up, which in
my entry-level fuck you status chart, you can see both the historical numbers and also the projection of bottoms (200-week moving average) until 2074...and that may or may not end up being correct, also...so you should be preparing according to your own financial and/or psychological circumstances.
In bitcoin it is not good to think in terms of compounding interest, but instead think in terms of compounding value.
I touch upon that comparison in another thread in a post of mine from a few days ago:
For example, even just looking at where bitcoin was in 2015, we can see that there have been about 9 doubling of bitcoin's value events (in terms of it's dollar value) and yeah some retracements but still we are currently still around 8 doublings since 2015 (that is ONLY a little more than 8 years).
1) $250 (2015)
2) $500 (2015-2016)
3) $1,000 (2016-2017)
4) $2,000 (2017)
5) $4,000 (2017-2020)
6) $8,000 (2017-2020)
7) $16,000 (2017-2022)
8 ) $32,000 (2021-2023?)
9) $64,000 (2021-?)
10) $128,000 (?)
Historically, those value appreciations in bitcoin have been way greater than the debasement of the dollar even if someone were to have had paid you 10% interest on the dollars that they were holding for you, it still would have had been better for you to keep your value in bitcoin even if no dividends or interest had been paid by keeping your value in bitcoin and stored by yourself in isolation.
Historically, many folks have gotten overly greedy with their bitcoin and they put their bitcoin with third-parties in order to receive interest or yield and then they end up getting fucked.. so frequently it is not worth the risk to be using those kinds of interest bearing products in relation to your bitcoin, unless you can have some confidence that they are not gambling with your BTC too much.. which is truly difficult to assess because sometimes they are lying to you about what they are doing with your BTC in order to earn the yield.
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But at the end people have different opinion or interest and its up for them what they like to happen on their holdings. But anyways its good to see your sustainable withdrawal thread since for sure we can learn a lot from information's posted there.
If you are getting to a point that you have accumulated quite a bit of BTC and you are thinking about how to draw income off of your bitcoin, then you could put it to practice, and even use a relatively low withdrawal rate if you are still in the process of trying to allow your BTC to continue to appreciate in value.., and so it could be a mistake to start to use it too soon, but also it could be a mistake to have a lot of BTC but also have no plan regarding how to start to withdraw them on a regular basis that is comfortable and likely to be sustainable if you try to stay within the parameter of the guidelines of the tool.