A blog about someone planning to retire early with Bitcoin

[sheenshane]

In the end, perseverance seems to be the key here. He's not putting an incredible amount of money down every month, but still he has managed to obtain a lot of Bitcoin, 4.47 BTC from his last update.

Have you tried something similar?, maybe now thinking about doing it?, I think it's a great idea.

That's a very inspiring blog, 4.47 Bitcoin is quite a huge amount of money that he can manage and I think this blogger belongs to a middle-class family that can afford it even though their investment is in long term.  This shows how the DCA method of buying Bitcoin is still worth investing in rather than a huge amount once at a time.

During uptrends, positive news and hype surrounding us, such as investing in Bitcoin, become more prevalent.
This positive statement just like on a blog can attract more investors who believe that Bitcoin will continue to appreciate as a potential investment.  Expecting there are more good stories around when Bitcoin touches in a new ATH.

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[hatshepsut93]

You can clearly see that it has been an incredibly great savings strategy so far, obtaining a lot more value than simply saving in fiat.

The key word is "so far" - no one can reliably predict where will Bitcoin be in the future, and there's no guarantee that a major bear market won't come. Maybe all these recent bull runs are a bubble and there will be a huge correction - that's a real possibility too. Those "boomer investments" are yielding less profits than BTC for a good reason - they are less risky and far better understood.

If I were planning to retire off BTC gains (and I might actually do that), I would focus on exit strategy to actually take BTC profits and move them into safe and predictable assets, instead of holding all my wealth in BTC for the rest of my life.

[thecodebear]

You can clearly see that it has been an incredibly great savings strategy so far, obtaining a lot more value than simply saving in fiat.

The key word is "so far" - no one can reliably predict where will Bitcoin be in the future, and there's no guarantee that a major bear market won't come. Maybe all these recent bull runs are a bubble and there will be a huge correction - that's a real possibility too. Those "boomer investments" are yielding less profits than BTC for a good reason - they are less risky and far better understood.

If I were planning to retire off BTC gains (and I might actually do that), I would focus on exit strategy to actually take BTC profits and move them into safe and predictable assets, instead of holding all my wealth in BTC for the rest of my life.

Well, there are major bear markets after every bull market. I think everyone understands we'll get another one in 2026. Bear markets shouldn't scare anyone in the Bitcoin market, they come every four years.

In terms of what you do after you retire, that just depends how much you retired on. I retired well below what I would actually need for retirement, because I had (and still have) all my money in Bitcoin so I knew thanks to Bitcoin's growth that I could safely retire well before I actually had enough dollar-amount to retire on. But if someone keeps working until they have several million dollars in Bitcoin then SOME diversification upon retirement could be a reasonable plan, even if it would lead to slower growth.

Personally, I plan to only diversify a little bit of my Bitcoin, my plan is to diversify about 6% of the Bitcoin I retired on into stocks over the course of the 2030's and 2040's. I don't think it's wise financially to do it sooner than that because Bitcoin will continue growing much faster for a good number of years than any stock portfolio I could possibly put together. It would take both extreme skill and extreme luck to make a stock portfolio that is safer and more lucrative than just sticking with Bitcoin.

One more thing, I think Bitcoin is as predicable an asset as you can possibly get. It's four year cycles have worked like clockwork. There are certainly no stocks that whose price movements you could possibly predict as well as the 4-year cycle price movements of Bitcoin. That's one of the great things of keeping money in Bitcoin as opposed to stocks, it not only grows faster but is far more predictable.

Often when people find out I retired off Bitcoin they make some comment like "oh so you sold all your Bitcoin to retire?" and I always want to laugh, I'm like god no I wouldn't be retired if I did that! And even if I could have retired doing that it would have been a horrible financial decision! If you know what you're doing you don't get out of something that is both as successful as Bitcoin and as early in adoption as Bitcoin just to move into slower growing far less predictable assets. I do plan to diversify eventually into some stocks as I stated, and maybe some real estate as rental properties if I want to deal with that hassle, but Bitcoin will always be the core of my wealth and I expect I'll still have at least a couple bitcoin left when I die, which assuming I die in old age would let me pass on to family members bitcoin likely worth 8-digits in dollars by then.

But again, it all depends on just how much you retire on. Bitcoin's growth and predictability of its market cycles allows people (like me) to front-run retirement. I retired in 2019. I knew we'd have another bull market in 2021 thanks to Bitcoin's clockwork predictable 4 year cycles, so I saved two years worth of cash in the bank to get me from retirement to the 2021 bull market before I needed more cash. In no other investment can you 'front-run' like that with a predictable and safe plan.


For anyone who retires off Bitcoin I highly recommend:

1. Keeping most of your money in Bitcoin after retirement, don't go all diversification just because you retired (unless you're reading this in like the 2040s by which time Bitcoin's growth may not necessarily be much faster than the stock market). The less money you retired on, the longer you should keep it just in Bitcoin. But if you retired with a big excess of money it is okay to diversify into slower growing assets upon retirement if you would rather have safety through diversification than safety through Bitcoin's growth and predictability. But even then you wouldn't want to entirely move out of Bitcoin, just diversify some.

2. Don't retire during a bull market, thinking that you hit some desired amount of wealth to retire on. Because then you have to go through a year of watching your net worth drop terribly in your first year of retirement. There's some term in the FIRE movement (which I can't recall right now) to describe the risk of your investments going down in the first few years after retirement. This screws up your entire retirement financial plan because then you start retirement pulling out a higher percentage than what you had planned, and so throughout retirement you then have less money, and that negatively compounds against you over time. The day I retired Bitcoin was at $10,000-something, knowing we were heading into the next big peak in two years, and nearly 7x'ing over the next two years of that market cycle. That's a great part of the cycle to retire during, when the bear market is over and it is still very early in the market cycle so you can watch your wealth grow a lot the first two years of retirement.

[Fundamentals Of]

Bitcoin makes savings great again. Before, saving is normally done in fiat. If you plot fiat savings on a chart like this, the only number that increases is the amount of savings. The purchasing value is always directed downwards. So whether the chart is between savings in fiat versus the price of iPhone or car or burger, fiat is always the one moving down. With Bitcoin savings, the value is always rising, making it a perfect choice for retirement.

This is a strategy worth emulating.

[BitcoinsGreat]

The other day I've found this interesting blog about someone in Europe planning to retire early by converting a fixed amount of their monthly salary into Bitcoin.

He started doing this in the bull market of 2017 and keeps doing it every month, no excuses. A specific amount, 500 euros, is always converted into Bitcoin and stored away in cold storage.

Well, this may work for him as he is saving 500 euros every month from his salary and converting to bitcoin. This is a good amount and for sure he can have an early retirement but most of us cannot put that much money into investment in Bitcoin on a monthly basis. The secret here is that if you have more money for bitcoin investment, you will get more profit and hence you can plan this early retirement. Otherwise, with less investment, it will still be good but the money won't be enough to feed you for many years.

[Assface16678]

It's already proven, I guess, that investing is more efficient than saving money when you want to retire early or you want to retire with a lot of money in your pocket. Although savings can also be an option, don't let your money sit in a savings account, as the money there will not grow, and other banks are the ones that benefit from that. Unlike the interest they get when they lend money to other people, the interest you receive from savings is too little. So prioritising the investment and the savings comes next.

I realise this thing when I reach a point in life where I have used up all my savings and, after consuming them, I have no more money that I can use. That's why I came to the conclusion that I should invest for long-term benefits while at the same time putting some money into my savings.

[Kakmakr]

You can actually use this site ===> https://dcabtc.com/  to calculate the result of regular Bitcoin buying and what the proceeds would have been, if you have done that for a specific time in the past.

It is obvious that early Bitcoin investors gained the most, by buying cheap and hording for a few years.

The results may be the same, if people buy now and you look back 8 to 10 years from now.

[Apocollapse]

Well, this may work for him as he is saving 500 euros every month from his salary and converting to bitcoin. This is a good amount and for sure he can have an early retirement but most of us cannot put that much money into investment in Bitcoin on a monthly basis. The secret here is that if you have more money for bitcoin investment, you will get more profit and hence you can plan this early retirement. Otherwise, with less investment, it will still be good but the money won't be enough to feed you for many years.

Investment is supposed to be long term, there's no such early retirement because you're not looking to make a lot money in short time. It's naive to think the money won't be enough to feed yourself in the future, do you think hold fiat will make you enough in the future? no, the values decline overtime.

Remember we're discuss about money management, not how to earn a lot money. To earn, it's related to get a job that pays well.

[nullama]

~snip~
Well, this may work for him as he is saving 500 euros every month from his salary and converting to bitcoin. This is a good amount and for sure he can have an early retirement but most of us cannot put that much money into investment in Bitcoin on a monthly basis. The secret here is that if you have more money for bitcoin investment, you will get more profit and hence you can plan this early retirement. Otherwise, with less investment, it will still be good but the money won't be enough to feed you for many years.

The key thing is that anyone can start saving in Bitcoin.

If you simply put aside an amount you won't need, and get Bitcoin with it, you will probably end up in a better situation in the future.

I think the key thing here is that Bitcoin has made investing mainstream.

Now anyone can invest by buying Bitcoin, whereas in the past investment was usually seen as a more complex and expensive thing.

This has led also to plenty of apps and companies that offer micro-investments these days, but those didn't exist pre-Bitcoin (I think).

[EarnOnVictor]

-snip-
Have you tried something similar?, maybe now thinking about doing it?, I think it's a great idea.

Nothing is entirely the great idea or the worst, once the person has a good reason for it and such that he can constructively argue in favour, then it is cool. I wish this guy and other people trying this good luck. It is a welcome development but also a risk they are taking.

And yes, I am trying something similar to this, but in my own cases, I am twisting it. Also, such is not my only plan, I have other plans in case this one fails as I do not trust any investment 100%. What if something unforeseen happened? One has to be careful and that is why I think that such people like this are risking so much unless they have plan B. In my case, I can never invest in a single asset, I think that people should diversify their portfolios, that is the best. Though people can make huge money by luck due to some risks they take in a certain asset, yet we can't always remove the high risk they take from it.

The best in economics and business is to have your risk lowered as much as possible, it is not only about the money you are gaining but how protective and wise you are gaining it. The risk they say makes wealth but it has killed some people's hope too if not careful about it, which is why I love it when we diversify and are more protective of our assets.

Good luck to him once again.

[Alpha Marine]

I think most of us do this but with DCA, the difference is this is a way higher amount than  most of us have to set aside. €500 a month is no small amount.
Him being able to set aside that amount of money means he makes more than that. So if anybody wants to follow in his steps, be sure to make sure you don't go beyond your limit.

From this we can learn that we all need a source of income. This man saved out of his income, no from borrowing or otherwise. I'm saying this because I see a lot of people who feel left out because they don't have money to invest in Bitcoin. First get a source of income, then from that income you can think of saving, investing or doing a business.

[Asuspawer09]

Theoretically, for sure this is a good strategy since you could possibly be rich in investing in cryptocurrency using the Dollar Cost Average, as long as you're going to hold and sell on a time high or higher market price in the future you could for sure still make a huge amount of profit whatever the case is. In my opinion, this is how you are supposed to be investing in cryptocurrency probably this is the way where you could easily minimize the risk in investing, compared to trading aggressively which you could easily lose a huge amount of money and do unsure trades every day.

For sure 4-5 Bitcoin is already enough for some people as retirement funds as long as they can still hold they could probably still sell it on a higher profit in the future, But still, there are always cases and risks involved in investing in Bitcoin since it is still not a guaranteed thing because the market price is so volatile and we don't really know if Bitcoin is still going to exist for even 5 years from now so for sure, So I would still probably invest on another kind of asset that is going to be a guarantee because that retirement money could easily disappear when something happened.

[dlightag]

That's a great idea one need to applied as a salary earning by setting a hard target like these, but is not easy to be consistent and it only takes courage and have focus to archive the goal.

[Myleschetty]

The other day I've found this interesting blog about someone in Europe planning to retire early by converting a fixed amount of their monthly salary into Bitcoin.

He started doing this in the bull market of 2017 and keeps doing it every month, no excuses. A specific amount, 500 euros, is always converted into Bitcoin and stored away in cold storage.

Well, this may work for him as he is saving 500 euros every month from his salary and converting to bitcoin. This is a good amount and for sure he can have an early retirement but most of us cannot put that much money into investment in Bitcoin on a monthly basis. The secret here is that if you have more money for bitcoin investment, you will get more profit and hence you can plan this early retirement. Otherwise, with less investment, it will still be good but the money won't be enough to feed you for many years.

You have a point but I don't agree with you.
Yes, capital is like the soul of every business. However, huge capital without proper timing and strategy could lead to disaster.
The good thing about Bitcoin investment is that you may not have more money and still make more profit. Yes, you hear me right. The problem is that people harvest when they are supposed to sow.
If you invest when there's a market bloodbath will get more profit than the person who invests 500Euro in the bull market, as the market is bull now I am already accumulating some capital for the bloothbath market but the majority of Bitcoiners see it as time for accumulation which is already passed.

[Strongkored]

Have you tried something similar?, maybe now thinking about doing it?, I think it's a great idea.

I've done it but unfortunately I can't be consistent because I have to sell it and stop buying it.
Planning to start doing a strategy like this again, but the amount will not be as big as that person did because of course it depends on each person's abilities and also the income that can be spared.
Because he comes from Europe, it means he earns quite a large income so he can consistently save quite a large amount, in my opinion, which is even very difficult for third world countries where earning that much income per month is very difficult.
However, whatever our abilities, if we do it consistently, it will have a good impact in the long term.

[KennyR]

That was a really great plan, and he had begun it at the right time. In the present market situation, one needs to allocate at least €1000 every month. In a third-world country, €500 is a lot to allocate for a person working on daily wages. This strategy works well and allows the person to retire earlier. Unlike the market situation, investing €500 is not a simple thing. After almost 6 years, he continued and accumulated more than 4BTC.

Continuing the same he could make good number of money within few more years. This is good capital for trading, with which he can also increase his earnings.

In third-world countries, it is hard, but a small amount can be allocated, and the same gives the reward. In western nations, the expenses were high, whereas in third-world countries, this isn't that high. So, even in a small third-world country, people can follow the strategy and make their retirement successful.

[Lucius]

~snip~
It is worth noting that in order to put 500 Euros on the side every MONTH means you need a pretty good salary out here in Europe.  I would assume it is more likely that average Europeans would be able to put less than a quarter of that on the side instead.
But even then.  100 Euros per month since 2017 would get you to about 50 thousand Euros today with an investment of 7.2 thousand.  Amazing none the less.
...

Did you maybe read my post? I wrote something about it, so you could get a much better picture of how much someone can set aside per month for such investments.

https://bitcointalk.org/index.php?topic=5484863.msg63652463#msg63652463

~snip~
Fun side note, I was talking to someone at the dog park yesterday who I had never met and I mentioned I retired early and he was like "oh you must have that bitcoin money", and I was like oh wow yes actually that's exactly it I retired off of Bitcoin. I like when people I meet recognize the wealth creation power of Bitcoin without me even prompting them!

You must live in a very safe country or you don't care too much about your own safety when you talk about such things with strangers in the park. Maybe the stranger doesn't have bad intentions, but someone else who hears a story about a person who has a lot of money might not have such good intentions.

[lixer]

Have you tried something similar?, maybe now thinking about doing it?, I think it's a great idea.

I have always been interested in doing something similar, investing a portion of what I earn in Bitcoin every month without touching it until Bitcoin goes pretty high so that I can use the money to start some business of my own and manage and grow that for the rest of my life. Unfortunately, I have never had a source of income stable enough to allow me to achieve that because to do something like that, you must be earning more than what you need based on your expenses.

He started pretty early, which is a better thing because he started buying when Bitcoin wasn't priced this high which had given his savings a boost, now when Bitcoin hits $100k per unit, his savings will have huge value regardless of how much money in total, in fiat, he had saved so far.

[Don Pedro Dinero]

Have you tried something similar?, maybe now thinking about doing it?, I think it's a great idea.

No because having all my wealth in one HW seems too risky. I prefer the bitcoin I manage in a HW to be a part of my wealth, and on the other hand I am not obsessed with retiring early. I guess if you have a shitty life and hate your job it makes more sense.

Did you maybe read my post? I wrote something about it, so you could get a much better picture of how much someone can set aside per month for such investments.

I completely agree. I currently save more than that (between fiat savings and investments) but I have to recognise that this is not the norm. I would say that less than 10% of the population can afford to save more than 200 euros per month or so in most European countries.

[hatshepsut93]

One more thing, I think Bitcoin is as predicable an asset as you can possibly get. It's four year cycles have worked like clockwork. There are certainly no stocks that whose price movements you could possibly predict as well as the 4-year cycle price movements of Bitcoin. That's one of the great things of keeping money in Bitcoin as opposed to stocks, it not only grows faster but is far more predictable.

People only could predict that there will be a bull run after the halvening, I never saw anyone precisely call tops and bottoms, it's always wildly off.

It doesn't take much skill to extrapolate the past performance with mathematical formulas or even drawing charts by hand, but it always fails because people don't understand the fundamental reasons why those cycle happened. And without such knowledge we actually can't tell if these cycles will keep repeating or not.

I could easily build a case that after halvenings stop impacting the available supply, not only there will be no bull runs after the halvenings, but the price could majorly correct from all the overinvestment that happened during the early emission phase.

There is no asset that is completely risk free, but risks of Bitcoin are many times higher than those of safer assets like real estate or stocks of big companies.