Posts about Bitcoin
tl/dr; Over the past 16 months I took out 3 personal loans totaling $59,000 and bought a total of 2.65 BTC for an average price of ~24,000 per BTC... I managed to pay off the first loan ($15K) completely, and $3,500 on the second loan. I currently owe $41,000. My monthly payments are ~$700 a month. I'm not stressing and my conviction remains strong. I can easily afford to service the debt. I’m currently up ~25% on my position, which comes to ~$19,500 profit.
Greetings everyone!
As promised, I'm back with my one year update to my previous posts of taking out $35,000 in personal loans to buy and hold Bitcoin.
You can read about my first two loans totally $35,000 if you check my post history from Feb and June of 2022. I don't want to cross-post from other subs. I got a lot of hate on those previous posts, but I think it was really just salty buttoners hoping Bitcoin would fail. Instead, I'm up ~25%!
Anyway, a quick review...
1st loan: February 2022; $15,000 interest rate of 6% fixed APR. I bought 0.45 BTC ($225 monthly payment)
2nd loan: June 2022; $20,000 interest rate of 4.9% fixed APR. I bought 1.25BTC ($326 monthly payment)
3rd loan: June 2023; $24,000 interest rate of 8% fixed APR. I bought 0.95 BTC. (~$405 monthly payment)
Total Loans: $59,000.
Total BTC Bought: 2.65 BTC
Average Price per BTC: $22,264 (not including interest paid on loan)
Average Price per BTC: ~24,000 (including interest paid so far)
It’s been a pretty good year all things considered. I was very aggressive with servicing my loans. I felt torn between buying more Bitcoin and aggressively paying off my loans, but ultimately decided to pay down my first loan… in fact, I managed to completely pay off my first loan of $15,000! It took me a total of 16 months to do so.
That left me with my remaining $20,000 loan of which I managed to make a small dent on. I’ve paid $3,500 of it so far.
In my previous posts, a lot of redditors on other subs, not r/bitcoin, had a really difficult time understanding my strategy so I’ll explain it gain in baby-talk: take out low APR loans, acquire as much Bitcoin as possible, hold said Bitcoin long term, and repay the loans with inflated dollars over time.
The way I see it, the US dollar is rapidly declining in value and prestige. Therefore, I will take out loans to buy Bitcoin and pay back said loans with inflated dollars that I earn from my job.
Now on to the new loan… with the halving less than a year away, I feel pressure to acquire as much Bitcoin as possible. So I decided to take out another loan of $24,000 with a fixed 8% APR.
I know, I know... that’s a high APR and I said I wouldn’t go that high in my last post! But since I paid off my first loan so quickly, I thought, why the hell not?
I’ll focus on paying this most recent loan down first since it has such a higher APR than the previous one, and with any luck should have it paid off within 18 months or so. We'll see...
I don’t expect Bitcoin to be trading in this range18 months from now. I expect BTC to be ~$100k per coin by then, so I’ll bite the bullet of a short term high APR for the the long term exponential price appreciation of Bitcoin. In the meantime, I'll continue paying down my loans... or maybe not. I'm tempted to throw everything I have at Bitcoin while it's still under $30k. We'll see...
***** EDIT*********
For those curious about my personal financial situation. Here it is...
Independent contractor. ~$60k annual income. I live in NYC, but have a rent stabilized apartment so my rent is very affordable. No wife. No kids. I'm frugal. I save and invest ~25-30% of income (~$1,500) into Bitcoin each month. Still have plenty left over to enjoy life.
We always tend to talk about how destructive bear markets are and how every investor just fears them and usually even paper-hands before the real bear market even started. The situation was not much different exactly one year ago from today, back then we all probably were full of fear as BTC had plummeted from a high of $48k to under $20k in just weeks thanks to the LUNA scam.
Many also paper-handed back then which caused this crash in the first place and many more thought, just as in the prior bear markets people did, that Crypto is officially dead.
Well, thankfully not everyone did that, in fact the people with commitment, dedication and sheer fucking will, like us, did not do that at all. They instead held onto their coins until now.
Those heros, made up for nearly 69% of the whole supply. That's 13.3M BTC out of the current 19.6M BTC circulating supply. That way we see that by far the majority of holders actually have the conviction to just hold through all of the pain because they know what is awaiting them on the other side of it. Just the smaller portion that sells is way more vocal.
And of course we are all a part of that 69% number, so we must finally step back a bit and look at all the pain we endured, but still prevailed. We truly deserve it to be celebrated by ourselves.
I have to admit that for decades, I believed that Michael Saylor is a nutcase. He has a very peculiar history.
He lost it all before. During the dot-com bubble, Saylor "saw a staggering $13.53 billion vanish". He was afraid that he would forever be called "the guy who flushed $15 billion down the toilet".
https://i.redd.it/2dox9q1ujl8b1.pngWhy? Well Microstrategy, his company, did this:
https://i.redd.it/7p4xmw2tjl8b1.pngYes that is a near -100% (99.9%). This chart looks worse than almost all the shitcoins out there. From over $3300 to $4.
Microstrategy even did a -62% in a single day because of accounting mistakes, which is why he was accused of Fraud by the SEC. After the dot-com bubble burst, Jim Cramer pointed to the collapse of MicroStrategy as a catalyst.
Since 2020, Saylor has been betting big on Bitcoin. He started accumulating in 2020 due to the fear of inflation. In total, microstrategy has 138955 Bitcoin. The company's average buy price is $29817, so they are now in profit. The biggest wallet looks like this:
https://i.redd.it/6yue315pll8b1.pngAdmittedly, I always thought buying this much Bitcoin was insane, no matter how much I love Bitcoin. It's like going all-in and I would never do that.
But what made me view him as crazy even more is his behavior. He sets crazy moon prices and shares daily inspirational Bitcoin posts, almost like a crazy cult leader.
https://i.redd.it/1cmh2kzjml8b1.pnghttps://i.redd.it/p2nk39kpml8b1.pngBut, while last crypto cycle we said that institutions would come for Bitcoin yet only a few did, now major institutions are arriving:
https://i.redd.it/rykb7py8nl8b1.jpgIf all the ETfs get approved, Michael Saylor's bet on Bitcoin will likely pay off massively and he will become one of the wealthiest people on the planet. Let's hope for all of us that Saylor is right because that is also really good for our bags.
