Post
Topic
Board Economics
Re: Financial Independence Retire Early [F.I.R.E]
by
JayJuanGee
on 09/01/2025, 06:20:31 UTC
To give you an idea, it's not that much compared to all of you in here but I can say that hopefully when BTC hits the ceiling, I can say that I can live with my life with less pressure…

That’s a good goal, congrats but I believe the FIRE stuff was originally about collecting dividend stocks which produce a somewhat reliable cash income.

Of course you can invest in coffee beans and still become FIRE if it works for you.

But having to sell your bitcoins might not be the best idea whether you become FIRE or not. Or maybe, you want to invest only in btc and later you want to allocate some of your btc to the dividend stocks when your btc stash hits a certain amount against the USD but then you won’t have any experience in the stock market when that time comes and you will look like a fish out of the ocean which means you’ll make mistakes and lose money.

Or you might try to become a real estate king like Donald after you get rich from btc. It will also generate good cash flow but the bad part is, it is a business which you’ll have to manage. Talk to the tenants, fix the properties etc… Dividend stocks bring much less headache. What could go wrong with KO for example unless they make everyone cancer or diabetic and guess what they actually do and nobody cares Cool (poor J&J and 3M had to go through that lawsuit nightmare and they still operate!)

The point is, I am not sure if depending on only btc is a good idea. You might also want to plant seeds in other farms while it is early. You don’t wanna be late there as much as you don’t wanna be late at bitcoin. Getting rich is easier than most people think. Managing and keeping your riches is a way difficult task.

Also understanding the legacy markets (stock and real estate) gives you a much better understanding of finance than investing only in bitcoin.

Many people who got rich from bitcoin were already nearly rich because they were already invested in stocks. Don’t miss that point. If you become successful at the stock market, you will kill it at bitcoin markets. Ez pz.

Let's say that a guy had accumulated bitcoin until March 2020, and he got up to 10 BTC, yet then he got frustrated with bitcoin, so he decided to start to cash out 4% of his bitcoin per year, and so if he had followed such a cashing out, he would have had cashed out right about 1.76 BTC over the past nearly 5 years, and he would still have 8.24 BTC, and so maybe at this point he could stick with a 4% cash out rate, or maybe he could move up to a 10% cash out rate?  I  think that either one is sustainable, yet the lower cash out rate will certainly allow the BTC stash to grow in dollars value way faster than a higher cash out rate, including a cash out rate as high as 10% per year, but surely a guy with ONLY 8.24 BTC might still choose a more conservative withdrawal rate, even though he surely would have had been able to allow his BTC stash to grow over the past 5-ish years with ONLY a 4% withdrawal rate.