In this episode, I share what happened when my wife and I decided to invest a sizeable amount of our money into Bitcoin, with the intention of living off of that money until we couldn’t do so anymore.
Clay Collins: Hey, this is Clay, and on this episode of Maximalist, I want to tell you about the Bitcoin money tree that my wife and I have. This is kind of a corny title, right? But, it’s kind of turned out to be exactly as described. So, back in the day, my wife and I, took a couple hundred thousand dollars worth of Bitcoin, and we separated it out into its own account. Like I said at the time, it was worth a couple hundred thousand dollars. We decided that we were going to see if we could live off that amount of Bitcoin, potentially for an indefinite amount of time.
So, here’s what we did. Every month, we would sell enough Bitcoin to pay for the next month’s worth of expenses. I’m not going to tell you how much that is but, we have two kids, we have a nanny, we have expenses, right? Couple houses, right? So, we spend money, okay? And when we went to go sell enough Bitcoin to pay for our expenses for the following month, we found out, usually, that there was more money in the account than we had started with. Or, at least, the U.S. dollar equivalent of the Bitcoin held, was more than we started with the previous month.
So, to put this into perspective, when we started doing this, we had the equivalent of $200,000 worth of Bitcoin and about a year later, it’s worth about $300,000, right? So, obviously we have less and less Bitcoin in that account each month, but the dollar amount is going up. I truly believe that it is possible that we could find ourselves in a position, 10 years from now, where we’re selling a small fraction of a Bitcoin each month. And that the trend that I’ve described actually continues. That this stash of Bitcoins goes from being worth $200,000 to $300,000 to a million to potentially several million, while we continue to sell a little bit each month to pay for our expenses. So, this technology is life changing. It’s game-changing not only from a socio-economic perspective, it’s game-changing from a libertarian point of view. But personally, it’s been game-changing for us. We’re already well past the point of recouping back from this investment what we spend on it in terms of U.S. dollars. So, that’s nice, right? It’s all gains from here.
I do believe that a crypto divide is emerging. There’s people who have Bitcoin and people who don’t. Of course, the cost of purchasing Bitcoin and cryptocurrencies is going up over time. Just like the digital divide, and many other types of social stratification, this can be a problem, right? There’s the haves and the have-nots. Although this podcast is for entertainment purposes only, and none of this should be construed as investment advice, I’d encourage you to consider the story that I just told you.
If you are considering purchasing cryptocurrency, please know that you don’t have to buy an entire Bitcoin. You can buy a thousandth of a Bitcoin, you can buy a hundredth of a Bitcoin, you can buy $50 of Bitcoin, you can buy whatever amount you want, or Litecoin or whatever else you decide that you want. I’m not going to give you any advice there. But, it’s a cool story and it’s been an interesting journey for us. Wanted to share that with you. Alright world, I love you, take care.