84 lines
5 KiB
Markdown
84 lines
5 KiB
Markdown
# Operation Saylor Episode - 2/120
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Hi again and welcome to another episode of the Operation Saylor. This is update number 2, corresponding to August 2022.
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If you are reading this for first time, you might want to check [Episode 1](https://stacker.news/items/47539), where my
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plan and details are explained. That will get you in context.
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---
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## Stats
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- BTC stack: 0.4183 BTC
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- € stack: 22611.80 €
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- Current total value in €: 31563.42 €
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- € into BTC: 10,052 €
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- Paid back to bank: 366.20 €
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- Outstanding debt: 43578.13 €
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- Installments to go: 119
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Charts
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- BTC churn chart
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- Value of stack vs Outstanding debt with the bank
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---
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## Log
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First month down. This month I had to pay the first installment to the bank. Dealing with a traditional bank feels
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awkward, but a deal is a deal and it must be respected I guess.
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These days I have been thinking into how I first got into investing years ago. As many others, I was placing my money
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in stocks and bonds before Bitcoin came around and completely changed the investment landscape.
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I had always kind of been interested in what should I do with my money. As soon as I got my first decent job and I was
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having some surplus after paying the bills each month, I had this itchy intuition that just having that money sitting
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in my account was stupid, and that I "should do something" with it. As I guess it is the case with most of the
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population in the west (and probably the world), I was completely financially illiterate, so I had zero clue about how
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and where to start.
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One day, I was doing one of my courses in coursera (something related to business metrics, can't tell which one it was
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exactly). The professor was using data from the SP500 for some case as part of the course. Then, my attention drifted
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completely from the course content to the SP500 data itself. I saw the long term performance of it and some switches
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flipped in my brain. As everyone, I had been told that the stock market is this crazy rodeo of wild volatility where
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you are risking losing everything. But seeing a 40+ years SP500 Total Return chart was painting a different story in
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front of me. If you combine this with learning about DCA, the Boglehead point of view, and devouring MMM style contents
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for weeks and months, my young and naive self was able to quickly draw a few intuitions:
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- That if you are in for the long-term, you are mostly safe.
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- That losing everyting is rather difficult. Even if you buy the top, the drawdowns are far from losing everything.
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- That DCA smoothes the hell out of volatility, so if you are consistent and stick around for a few years, everything
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would feel much more calm than it looks like in the charts.
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I basically fell down the FIRE and Boglehead rabbit hole, and that was my whole plan until Bitcoin came around and
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things changed. I still hold my old Boglehead portfolio. Should I liquidate all of that and put into bitcoin? I don't
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think I will for now. I will happily recognize that the traditional financial markets feel quite rigged (GME, bailouts,
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bonds living out of central banks stimulus, ...), which is a strong motivation to invest in something as pure,
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transparent and neutral as Bitcoin. But investing in companies still makes sense top me, simply from the economics
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textbook proof. Plus, taxes.
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I would love to see a hyperbitcoinized future in which Bitcoin has won and its value has become stable due to becoming
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the preferent risk-free store of value and thus having a huge size. And in such a world, I dream that we would be able
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to buy shares from companies with our own bitcoin, and that the traditional investment, in its own version 2.0, would
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make sense again. Basically, only businesses that offered a reasonable reward for the risks implied in investing in
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them would stay afloat, because otherwise, people would just keep their savings in bitcoin. A very different picture
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from our current fiat system where we are pretty much forced into investing our savings into risky investments in order
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to keep them relatively safe from the constant currency devaluation that is opressing us (in case you want to dive
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deeper on this situation, it is nicely explained in the last book from Saifedean
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Ammous, [The Fiat Standard](https://en.es1lib.org/book/17416829/6f3cac)).
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So that's a brief summary. I am grateful that I started in traditional investments, even with all the flaws and risks
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associated. Because it was good training to:
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- Getting used to see your net worth dance up and down through the chart.
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- Doing research, judging an investment, drafting a plan and sticking to it.
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- Growing confidence in the decisions that you make by accepting that shit might hit the fan, but that's part of life.
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There is always uncertainty and, if you are trying to find a way to be 100% sure that things will turn out right
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before you press the buy button... you will never press it.
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And all of those things are transferable to bitcoin. I am not sure if I would have gone into Bitcoin in the first place
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had I not experienced all of that first.
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Enough rant for this month. Thanks for reading and see you in the next episode.
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