If someone has poor habits and also a bad mindset , they might not know how to manage their money and their emotions and they might not even know where to put their money and to live off of the stream of it, rather than spending down the principle.
So for example in traditional investments, if you have $2 million and if you can put it somewhere that you are on average able to earn at least 4% per year, then you would be able to withdraw 4% per year without depleting the principle.. So that would be an income of $6,666 per month or $80k per year.
If you put that $2 million into bitcoin right now, then that would get you right around 17.8 BTC, which I personally believe that you could withdraw $94k per year in a sustainable and perpetual way, since bitcoin is a better investment than most places that you could put your money.
Woah, I was not aware of that strategy or website. Very interesting stuff. In this case the principle is also valued in USD then since you will be slowly spending the BTC amount but the expectation is that the USD value will remain. Did I get this right?So for example in traditional investments, if you have $2 million and if you can put it somewhere that you are on average able to earn at least 4% per year, then you would be able to withdraw 4% per year without depleting the principle.. So that would be an income of $6,666 per month or $80k per year.
If you put that $2 million into bitcoin right now, then that would get you right around 17.8 BTC, which I personally believe that you could withdraw $94k per year in a sustainable and perpetual way, since bitcoin is a better investment than most places that you could put your money.
This is referring to time-based sustainable withdrawal, and I probably have not been consistently clear about how to make such calculations, and it was ONLY recently that I had bitmover change the tool on the website so that it has a spot price dollar based calculation and a 200-WMA based calculation (there is a tab on the website to make the selection), and it seems to me that if a dollar based withdrawal rate is based on the dollar value of the 200-WMA, then the 200-WMA tends to signal BTC bottom prices and also it has tended to always go up, so it is a much more stable way of valuating our BTC holdings and determining how much BTC that we are able to sustainably withdraw based on such 200-WMA dollar value.
Even in the period between mid 2022 and late 2023, the BTC price was at it's worst rate and spent around 16 months at or below the 200-WMA, yet the 200-WMA largely kept going up at a rate of 19.13% per year, and you can see the numbers through the chart or you can look at my latest fuck you status chart that shows the rate that the 200-WMA went up at its lowest rate ever for three different 6 month periods between late 2022 and late 2023 as 9.2%, 9.17% and 10.32% respectively, which calculates out to 19.13% annualized during that period.
We are talking about bitcoin in this thread - not shitcoins.
It is confusing and misleading to suggest that investing into shitcoins is the same or even similar to investing into bitcoin, even if you mght be striving to ONLY focus on the top 10 to 20 shitcoins (in terms of their supposed market cap).
Some posters here are ridiculous. Pretty much all altcoins are centralized shitcoins with a few exceptions. To compare investing between the two is ridiculous, something like comparing investing in Gold and investing in air. I know you don't like gold but let me have my comparisons. It is confusing and misleading to suggest that investing into shitcoins is the same or even similar to investing into bitcoin, even if you mght be striving to ONLY focus on the top 10 to 20 shitcoins (in terms of their supposed market cap).
Sometimes I won't even mind having some discussion of shitcoins as long as there is some clarity which one (or which ones) are being discussed, so using the category crypto will sometimes make it unclear about what is even being discussed, and if someone were to invest in crypto they need to figure out what they are going to invest into.
Many of us will also get bothered by people thinking that they are investing into bitcoin, but they are investing into ETFs or they are holding their bitcoin on exchanges, and sure for all intents and purposes, we might be able to concede that even derivative products will still give price exposure, so third parties holding the BTC is ONLY going to negatively impact when there is some kind of bankruptcy or rug pull event.. and we saw quite a few of those in 2022 with FTX and some of the other culprits that ended up going under during that time, starting out with Tera luna that likely did not have as many bitcoin as they claimed to have had, but they were defending a supposed algorithmically stable coin that was supposedly backed by supposed real bitcoin.