Posts about Bitcoin
The halving is coming and it's coming fast. Less than one year left until we reach the pivoting moment where once again the block reward for Bitcoin gets cut in half. This will be the 4th Bitcoin halving in history. 40,000 blocks left.
Speculators will continue to speculate, predicting the price will go up because of this event but to me it's exciting either way. You will be part of history seeing this play out and for me this will be my first time being able to watch it happen live. So stay humble, stack sats or whichever cryptocurrency you are accumulating and be patient. Hopefully all this effort waiting and enduring the crash of 2022 will be rewarded.
Historically speaking the actual day it occurs not much happens with the price and we still spend some time going sideways, likely will happen this time as well.
It is time… time for another trip to the very remote part of Bitcoin as the King of Crypto and a trip that will probably cause a lot of hindsight already for many of us. But as we usually say, hindsight is 20/20. Of course you could have made better decisions in the past, we always could do that, but looking back now that does not change anything except wasting your time and brain power.
Today we are going back to 2010, BTC is not even two years old yet and basically just a currency that is known by some handful of software engineer nerds. Satoshi Nakamoto is still very active around the development of BTC and we have now just hit the price of 1 cent. Yes, in this year BTC hit $0.01 for the first time and even want on to close that year at $0.09. Everything afterwards is just history with countless parabolic moves up.
Here we have a chart that shows the absurd gains of BTC ever since. We went from $0.09 in 2010 to $26.9 in 2011. A 2.960% gain in just one year. We would be very lucky to get that in one decade right now.
A quote to counter hindsight I like, is that we should view life as a game of chess. We can not undo a bad move, the only thing we can do is to look for the best possible move in our current situation and many are already doing that by buying and DCAing into Crypto now.
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.