I was thinking about the following hypothetical the other day:
Let's assume that bitcoin goes to 100-300K (let's say, 200K average) this cycle and somewhere along the line you sell a substantial % to invest in property, luxuries, etc ( whichever you choose).
In 10 years afterwards, bitcoin goes to 5 mil, which means that you only "captured" just 4% of the potential value.
How would you feel about it? I guess, it would also depend on the remainder (that you didn't sell), but still.
Personally, I know that years later, I am not particularly fond of my decisions to sell AMZN, AAPL and TSLA early, even though I made very nice gains on them.
Sometimes, I consider these occurancies as my investment follies, but, again, you cannot be 100% efficient.
Of course, it is possible to NEVER sell btc and, basically, put this decision on the shoulders of descendants, but you cannot guarantee that they would be wise about it, right?
At least, I can't.
At some point, I would have to start to spend btc and this point is coming relatively soon.
Alas, to spend even a relatively small amount of btc on things like kitchen remodeling causes a bit of mixed feelings on my part as I contemplate the scenarios described above.
That could be one expensive kitchen 5-10 years down the road.
Withdrawals from IRA are taxable and I put all my stables back into the market during 2023.
I would probably do a mix of "things", but don't want to take on HELOC or anything like this.
Decisions, decisions...
Read/listen to the book 'Die with Zero' - Bill Perkins. Working for money (or in our case, waiting for Bitcoin to go up) is a trade-off against your only real asset your life time.
Memories and experiences you have earlier in your life have greater value than the ones you have later because of the benefits they give after you have had them. Sharing and using, wisdom and memories both have significant value to your overall life happiness. (I think travel experiences often give great returns.).
Think about your grandparents, as you grow older, you will end up wanting less and are happy to stay at home, in fact, health issues mean you probably can't travel easily anymore, and this is when those earlier 'experience' investments in your life reach maturity. Bizarrely, living in the moment is an investment in your future. So the earlier you have these experiences the greater the return.
Dying with zero doesn't mean forgetting about looking after dependents or risking running out of money, but it helped me think about getting the correct balance between living in the moment and thinking longer term.
In the case of Bitcoin, for me it was about setting very ambitious objectives about the things I wanted (property, cars etc, but whatever is reasonable to you with your current BTC holding) , and when Bitcoin was at a sufficient price, and I would still have at least 50% of my BTC remaining, I pulled the trigger. (actually, my trigger price was $42k, in the last bull cycle, and I part-exited at $55K, and paid all the tax due.)
But I always live by, "Never have no Bitcoin."
Fully understand that.... when younger and more able to do certain things, never only think about the money or the future more value an asset can reach...
if you have a certain amount which will e significant anyway, take some early and keep livig the way you like to. Make great memories, do epic stuff.
Also spening on what is a personal issue. Maybe very strange but some people don't like to travel to much but love gadgets more.... if thats the case certainly np, get some stuffs ... But for me its about the doing things and exploring places nonetheless I like to do them on my terms.
Bitcoin most of all learns us not to be to greedy and start learning what matters as well ofc if hodling all of my previous coins I would have more coins/FIAT value today, but then I wasn't living where I live and didn't see the places I have been to with some of the people I like etc... wouldn't change a lot if I could go back.
BTW long time, good to read you.
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