Thinking Percentages Not Nominal Figures

in HODL3 months ago

Hey Jessinvestors

As I fall deeper down the rabbit hole of crypto and investing and realise the way we measure purchasing power is grossly skewed and why we who don't have assets continue to fall behind each year, I've become quite the active investor. I started with HODL'ing and accumulating, which I think is the part most people should focus on in the begging.

Become comfortable with owning your money and how to use these tools to transfer and store your wealth, once you feel comfortable with your crypto and the volatility doesn't bother you anymore, then it's time to move on.

The days of only buying low and selling high in crypto seem too antiquated as more layers, and use cases come online and using CE-FI and DE-FI with the inefficient rates of defining a yield curve in this space, you can make a lot of money.

  • Since we don't know how to evaluate the underlying asset, and the cost of holding volatility, the interest rates on putting this type of capital to work is high.

  • Due to very little liquidity and Bitcoin being super scarce asset interest rates are high.

  • Tyring to attract capital to your project over another and build a healthy base of traders, liquidity suppliers and debtors, the interest rates are high.

percentages.png

The wrong measurement tool

Once you ignore the dollar value or fiat value of the asset in your local currency things, start to clear up and make a lot more sense. As fiat gets debased that floor continues to rise, as more money flows into Bitcoin the floor continues to rise, so I am not too concerned with the unit price in fiat.

What I am looking for is yield. I've taken around 1.3 BTC (a combination of BTC and alts) and put it to work in various platforms. If I average out my returns across all my investments I'm pulling in around a 12.4% yield which is nuts; this rages from staking coins, yield farming, liquidity pools, CE-FI interest accounts, gambling dapps and more.

The safety of these tools remains to be seen, but when measuring your yield in more satoshis, it makes it easier to see if you're generating a profit and how much profit you generate.

Don't become Bitcoin Pizza guy

Arguably, one of the most famous cases of selling to early, is Bitcoin Pizza guy, the person who spent 10 000 BTC buying 2 pizzas. Every time you sell Bitcoin for fiat, you make that Bitcoin pizza guy moment for yourself, buying dollars or local currency for way too high a price.

I have no interest in cashing out any of my cryptos, short of a bull run and parking it in a stable coin and then moving it back later.

I am here to learn from the mistakes of the past, and as long as I continue to take advantage of these high-interest rates, I can't be there to sell.

Even if my yield is cut down to 4-5% on a Satoshi, it's far better a return than I could get anywhere else.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I always see a very organized way in relation to the management of your investments, I think you know what you do, I have been holding BTC for about 3 years and I plan to continue like this, either for myself or my heirs, this project has not yet been consolidated.
Greetings

It wasn't always like this when I first got in 2016 I didn't know what I was doing lol, slowly I've learned and things have changed so I am always learning. I've now got a well-oiled machine buying BTC every month a set some, then per week I have another buy order and then I have a daily buy order too, its all a game of accumulation

Comparing fiat with crypto slowly doesn't have a sense... I have a discussion in comments about exactly this, how we compare crypto (more valued asset) with fiat money (losing value every day) and it serves only to raise the value of FIAT money... I mean the importance of it, while it becomes slowly a toilet paper...

I'm joking with my wife when we compare earning on Hive by price of lunch menu in a chinese restaurant... well, I would say that that has more sense than comparing with USD, or EUR... lol...

So, percentages are the best way for crypto accumulation... And HODL... You exchange your most valuable asset ONLY when you are in a big need... And I recognize that pattern between crypto hodlers... That's the right attitude!

Cheers!

Lol It took me a while to figure that out I think we all get into this and then fry our brains trying to do all these damn conversions into fiat, my poor calculator took a beating. I think you're right working on the purchasing power is easier so if I go how many HIVE can buy me X this year vs next year, and If it continues to be better, keep holding on :)

I have enough fiat to live thankfully so it allows me to accumulate, I've actually gone into a bit of frenzy and I know buy Satoshis EVERYDAY and earn some every day. How do you eat this big elephant that is 1 BTC? A little bit at a time

I'll be a Jessie also.. 😉

I'm in a similar place, not enough spare fiat to really go all in, but keen to build a future were I can free myself from the daily grind. Looking for income and ways to grind out more crypto, wherever I can.

Now, I think I'll have pizza for dinner.

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Oh indeed, I continue to try to increase my Satoshi balance every week. So I dollar cost average in every month a lump sum, then I set another small buy order to go off every week and from next month I;m going to do another small buy order every day and keep stacking them up

I hope you will be buying your Pizza with filthy fiat don't you dare spend a Satoshi on it lol

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No way I'd buy pizza with BTC. HIVE maybe, if I could easily, but that's a different story.

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That is exactly the point. It is not easy to overcome the high volatility in fiat terms if you start new, because that is the way you were counting your "money" for a long time. Counting in Stoshis and (more relevant) in yield is the way to go. Good article. I am a jessie

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Lol well I did it this way because I was lazy trying to do all the conversions with fiat was doing my head in so I thought let’s just focus on Sats it’s easier and noe I’m hooked

You have laid out all perfectly. I have nothing to add.
So...
"I am a Jessie."

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Why thank you kind sir that means a lot

Just a
J
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S
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HAPPY HALLOWEEN

We don't celebrate that here, so don't come make up your own holidays!

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So you dont celebrate "Mini-mining day" either? Oh crap....

Send 0.1 BTC to my address and we can talk about celebrating mini mining day in South Africa

Will do!
I send them in a letter.
I have them in My shop
https://www.minimining.se/produkt/bitcoin-mynt-kopia/

Imagine selling 10,000 pizza to buy pizza, I'd have killed myself a longtime ago

Lol well every time you sell Bitcoin for fiat and cash out you doing the same thing! I can’t wait to share the stories one day of people who cashed out their HIVE to Bitcoin and then sold it and then later it’s worth a life changing amount

It’s all one big test of who believes and who doesn’t! If you don’t believe and want quick cash by all means go ahead but for me I rather go all in and go broken then pick out these few pennies

Well like you said it's all a test of what one believes, as for that guy that was one hell of a failure, he could have never needed to work in his life again.

LOl exactly, so how do you know you're not already sitting on an amount of crypto that could do that for you

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I hope you do a post showing how you get those returns, that would be very interesting!

Sure I can do a break down on the various tools I am using and how many sats I am getting and people can pick apart my math

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