23 Dec I previously went all-in on BTC. Here’s my story.
Anonymous account for obvious reasons but I wanted to share my story.
I started buying Bitcoin in June of 2017. I continued to buy small amounts as the price increased. I was convinced I would “never” be able to afford an entire Bitcoin but I kept at it. I was only making about $59k per year at the time and still trying to pay off what had started off as over $100,000 in student loan debt.
Like many others, I was discouraged by some of my purchasing decisions (like buying at 17k), but I kept buying until I had my first whole Bitcoin around October of 2018. Even then, I was only down about 35% because I had made purchases starting in June of 2017. Then, shit hit the fan in November of 2018 and I watched as I was suddenly down more than 65%. My bags were heavy and I truly understood this was the despair stage. However, I didn’t give up and I actually bought another full Bitcoin at $4,100 in April of 2018 despite feeling like my anus had been stretched to the max.
I didn’t really buy any more Bitcoin after that for a long while. I felt that I had reached the “don’t invest more than you can afford to lose” limit and I was a member of the 10 million club with my 2.1 BTC. I paid off debt, lived life, fixed up my house, etc. I thought I was done buying Bitcoin. I finally “broke even” around the $7,700 price mark.
Fast forward to March of 2020 when we crashed because of Covid, I was kicking myself because I didn’t really have money at the time to buy more. I only had a couple thousand in an emergency fund and I don’t touch that unless there is a true emergency.
Then a perfect storm happened. I got a new job close by that was paying significantly more money and I needed to sell my house. A house that I had built up a lot of equity in over a short period of time. I went from only having a $2,000 emergency fund (plus 2.1 Bitcoin that was worth about $22,000 at the time) and a standard 401k from my previous employer worth about 55k, to about $65,000 in cash from the sale of my house and $55k in a 401k that I could now put into an IRA.
I put 10% down on the purchase of a new home, bought some stuff, and I had $30,000 in cash once the dust settled. At first, I thought that money would simply be my 3-6 month emergency fund and it would sit in cash in my checking account, earning 0.0007% interest. That’s the responsible thing to do, right? Around this same time, I pulled my 401k from my previous employer in part because they wouldn’t let me buy GBTC. I found an IRA provider who allowed me to buy GBTC and I sent the money over. It took me 7 years to build up a 401k worth $55,000. (I think I averaged about 13% annual returns).
Between the cash and the new IRA, I had over $85,000 just sitting on the sidelines, waiting to pull the trigger. This was more money than I had ever had before. BTC sat around $9,000 for several weeks and I was convinced we would retrace back down to 7 or 8k before the next bull cycle. I hesitated out of fear, because of all the FUD surrounding Covid.
Then I saw the news about Microstrategy, then the price pumped to over 11k (Fuck! I can’t buy 3 whole Bitcoin anymore with my 30k). I knew I was FOMOing in, but I figured it wouldn’t matter much in 10 years if I bought at 9.5k or 10k or 11k. I think seeing institutional investors was the thing that pushed my hand to go “all-in”. That, and I still have a good 30 years of work ahead of me so if I go bust, then at least I can start again. I bought $30,000 worth of Bitcoin at $11,100 and I bought about $55k worth of GBTC when BTC was around $11,300.
Now, I’ve more than doubled my net worth in a matter of months and it feels fucking great. Altogether, I’ve put about $100,000 into Bitcoin which is now worth more than $260,000. I’m hopeful for the future and I think 2021 is going to be a great year for Bitcoin. I don’t plan on selling my Bitcoin for anything other than paying off my mortgage. I’ve already decided that whenever my $30,000 BTC buy becomes enough to pay capital gains taxes and my mortgage, I will sell. I’m making the decision now so that I won’t have to later. I will always HODL at least 2.1 BTC to give to my kid or a charity if my kid turns out to be a little shit. I’ll start to sell some of my GBTC in 20 years when I’m getting ready to retire. I hope they launch a Bitcoin ETF before then so that I don’t have to pay 2% every year. I’ve already been through a full bull/bear cycle so I feel I am better prepared for when it happens next. I’ve only sold once before early on, and I regretted it so now I have diamond hands.
Onward and upward.