This topic is dedicated to calculations and discussions on the strategy of holding Bitcoin to ensure long-term passive income.
Calculations like this are indeed interesting because they attempt to provide an overview of how 1 Bitcoin can be managed to become a source of long term income. However, it should be understood that models like this are highly dependent on assumptions about the future price of Bitcoin, which is inherently uncertain. I think it is healthier to maintain realistic expectations rather than relying entirely on projected figures. As i am doing now, i am accumulating Bitcoin using the DCA method with discretionary funds. I think this looks better and more realistic. In addition, i view Bitcoin not only as an investment asset but also as a form of protection against the decline in value of the assets we own. In this context, it helps ensure that the value of the money we have is not eroded by inflation and also provides an opportunity to profit from investment returns.
That's not solid planning though, specially in bitcoin market where it has been proven already that it can have long bear markets where price keeps going down instead of going up. Then you end up selling a bigger percentage of what you have to get the same fiat value out. I'm talking about a period like 2018 for example.
I would also not call it "passive income", that is more like slow liquidation of your investment. A passive income shouldn't involve your initial capital melting away but instead you should still be able to keep the 1BTC and still earn the annual $100k.
Assuming $1 mil price, that makes it a 10% profit which is possible without having to touch the capital.
Exactly, this looks more like a gradual liquidation of assets, because ideally, passive income should come from mechanisms that generate yield without sacrificing core assets (initial capital). Like using a crypto lending platform, which allows us to lend Bitcoin in exchange for interest, only this is riskier, because if the platform goes bankrupt, the funds could be lost. Bitcoin operates on a Proof of Work (PoW) mechanism that relies on mining, not staking like Ethereum, so the option chosen to generate yield is riskier. I think keeping 1 Bitcoin intact while looking for ways to generate yield from it with lower risk would be much wiser.