Ninjastic
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Re: [ANN] JJG Sustainable Bitcoin Withdrawal Strategy
by
fillippone
on 29/12/2024, 07:18:10 UTC
⭐ Merited by bitmover (2)
Quote from: NotATether on Today at 05:32:57 AM
Quote from: JayJuanGee on Today at 05:05:35 AM
Keep in mind that my own ideas regarding withdrawal or sustainable withdrawal, whether based on price or based on time, presume that the person had reached a status of over-accumulation.. or alternatively using a set budget, for example giving a 10 Bitcoin budget to a business, then if the business were to be using a time-based withdrawal system, then the business could figure out its withdrawal rate, and so for example the tool currently asserts that a 4% annual withdrawal rate would be 0.03333333 BTC per month, even though surely I want to adjust the tool so that it would use the 200-WMA dollar value, yet we have not yet made such adjustment, and then perhaps be able to withdraw up to 10% based on that way of valuating the BTC holdings, yet we have not yet made those adjustments... so until we make such changes, it may well be better to stick with more conservative withdrawal rates of around 4-6% annualized.

0.03 BTC sounds very high even for a 10 BTC budget.

It may be just me, but I have an even lower percentage withdrawal rate, somewhere between 1-2% a year.

It is indeed very high, given the current price action.
But remember that going into the future, prices will grow slower, even accounting for incredibly bullish scenarios like a Power Law framework.
You can set your hypothesis on the included spreadsheet, and I think this is important as well: a portion of Bitcoin left for future generations, as we are the lucky ones building and looking for intergenerational wealth.