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I think the only assessment to no if someone has accumulated more than enough Bitcoin is if you have
three-and-a-half to six times your pre retirement gross income in bitcoin or if you have accumulated more than expectation, I think we should not just bring to ourselves what we think we be the assessment the one I wrote is just my opinion and I think there should be an official assessment for this in Bitcoin investment.
I think that one of the mistakes that people make is not having enough, and if you plan to have ONLY 3-6 times your needed annual expenses, then you seem to be thinking about cashing out principle and interest, which I would not consider to be sustainable.. even though it is possible with bitcoin 3-6 times could still work out, but it is problematic in terms of how it is going to end up withdrawing principle and not going to be sustainable (from my point of view).
In traditional investments, there is a presumption of being able to sustainably withdraw 4% per year, and so if you have 20-30 years worth of income, that 4% per year should work for you.
Yet, I personally speculate that somewhere close to 10% could be sustainable, which would mean that you ONLY need to have around 10 years worth of your annual expenses for your 10% withdrawal rate to be sustainable.
Of course, each person needs to make their own assessments, and I personally assess the value of my BTC based on the 200-WMA rather than based on spot price, which likely gives an additional cushion of not getting into withdrawal status prior to having eniough.
Yeah I agree with you not having enough is one mistake a lot of people have some don't even know or understand when they have enough or not and that is why you see them selling of there Bitcoin and later regret.
Reason from your point of view the yeah The
three-and-a-half to six times your pre retirement gross income in bitcoin may be problematic and that is why it is always advised to seek for other people's opinion and evaluate it and then chose which is better, one can still decide after evaluation to take his own idea or that of others and that one of the main reasons I love this forum we share ideas.
You said one ONLY need to have around 10 years worth of your annual expenses for your 10% withdrawal rate to be sustainable, and I ask what is the person's weekly or monthly salary is small maybe just $100 or $200 a month will this advice still go.
Well for me I think one's salary and how much he or she invest on Bitcoin weekly or monthly using the DCA strategy plays a very important role when it comes to reaching a rate to be sustainable because if for example I'm investing on $10 or $20 weekly or monthly on Bitcoin and another is investing $100 to $200 weekly or monthly it will have different time for reaching a rate to be sustainable. ( My point of view).
Yeah everyone has there own assessment and I love that you assess the value of your Bitcoin based on the 200-WMA rather than based on spot price and that is what I was saying earlier that accessing one Bitcoin by price will make you sale off your bitcoin thinking that has reached or you have accumulated enough and for me I think accessing it by price will be a big mistake anyone will do because it will always end in regret, I know was someone that once accessed his Bitcoin by price and and he also went ahead and sold everything and till date he is regretting his actions.
In my own sense I think before thinking about selling our Bitcoin we should really think about it and ask ourselves what will I stand to gain if I start selling now and what will I stand to lose if I start selling now, I think this question will help you make a good decision.
I think that the better question is whether you are able to assess your withdrawal strategy as being sustainable or not, so if you do not have enough to have a withdrawal strategy, then you have not reached a high enough BTC accumulation to begin your withdrawals.. but hey whatever you can do what you like whether it is sustainable or not.. I personally believe sustainability of your withdrawal system (amounts and do you have enough) is the key to success with your long term investing rather than ending up cashing out all of your BTC prior and then ending up with a bunch of worthless dollars or whatever was your inferior investment and/or decision to consume rather than to make sur taht you have enough prior to staring to consume.
Yeah you are correct and I agree with you, sustainability of one withdraw system helps, before one will consider withdraw he or she should first check if he or she has a sustainable withdrawal strategy and if there's no good withdraw strategy then it means one has not accumulated enough Bitcoin, this point of yours if followed very well will really help in knowing if one has accumulated enough or not.