14
It’s getting on for a year since I first asked it but in this post I’m returning to my original question:
How likely is it that I will I ever own a full Bitcoin?
Now, before I get started, it’s worth saying that in the world outside of Bitcoin I am a disciplined and patient investor – a lifetime follower of the FIRE philosophy. In many ways now living off a passive income from capital, acquired by many years of spending comfortably within my means, is not the traditional way. However, it is fair to say that the main bulk of my funds have been accumulated with some very traditional assets – mostly low-cost US equity tracker funds.
Starting off one year ago I was completely new to the world of crypto and, even having reached my goals in other investment arenas, I remain to this day humble in this one.
That said there are some principles that transfer well. Let me expand further on this by looking at my two main options to get to the promised land.
Go out and splurge $50000 on a full bitcoin – goal achieved.
Thinking back to how nervous I was making my first Index Tracker purchases 30 years ago – even with them being diversified across the entire US equity market I was petrified that I could lose everything. Whilst the most direct route to where I want to be, the risk of a large purchase in a single asset goes against my every instinct.
We’ve all heard the story before that a fool will laugh three times at a joke. First time when they hear it, second time when they tell it to their mates and for the third time when … … … they eventually get it.
Now, I’m not saying that Bitcoin is a joke and I’m certainly no fool but there are some parallels with my Bitcoin journey. Feeling still the humble Bitcoin novice, I want to run it by my mates and take the time and trouble to ‘get it’ before taking such a step.
Whether it be fear or prudent caution, I’ve considered but jettisoned the bulk purchase route.
Regular purchases over a long period – goal achieved.
In my other investments I had a plan to make regular contributions and stuck to it. As my confidence in the firms I was using increased over time, I allowed these contributions to gradually increase and eventually branched out into other platforms.
Starting with the more user friendly and soon afterwards Coinbase-Pro with its much lower commission rates, I’ve continued to make regular purchases – albeit double my original amount – so called $ cost averaging.
Feeling a little more comfortable in the space I now use KUCOIN – mostly as a means of extracting the coins from PUBLISH0X that COINBASE doesn’t support.
I’ve also just started lending some of my Bitcoin out through . I’m excited by the prospect of receiving decent passive returns paid in Bitcoin.
All of the above tells me that the wise way to go is to proceed steadily building knowledge and confidence.
While, spreading my coin over 4 or more adresses gives me some protection against losses from platform failures, I also have lingering concerns over the safety of my funds and am considering some kind of hardware wallet.
At the time of writing my first post I owned 0.00497 BTC.
Going forward a year and this is now approaching 0.25 BTC.
First time round I’d pessimistically concluded that with the accelerating price of Bitcoin that it was unlikely I would ever own a full one. One year on and I’m now more confident. Still a long way to go though – especially if the rally that has been much talked about takes us to a new plateau.
Let’s see where we end up in another year’s time………
