“Bitcoin Retirement”


hi welcome to crypto ramble I’m Desi-Rae
apparently there is a Bitcoin retirement calculator I haven’t actually seen it
yet but I heard of it I’m going to look at it now and maybe you haven’t heard of
it and you can use it in order to calculate I guess how long it should
take for when you should start getting out of crypto I guess at different
points you can do it based on time or you can do it based on dollar amounts so
like every month you would take out a certain amount of your holdings or when
the price reaches certain specified amounts you will take money out so and I
know that those are ways of planning when to take out from your investments
but then keep the rest of it going for the future so before I look at it I just
want to say that this brings up the whole store of value thing and whether
or not crypto should actually be used just as a transactional currency or as a
way for people to invest in the future it was really just meant to be used as
money but there are economics behind it that make the price go up as more as a
network grows and also that’s part of the proof of work and proof of State
depends and other consensus mechanisms those are things that they keep in mind
how to keep people interested in securing the network and also holding
their funds in there to keep a chain going over time so I don’t know if
that’s just a question that I have I did an interview recently someone and they
were saying that the store of value is important for crypto currency but that’s
not really what crypto is really supposed to be out be about it’s about
whether or not it’s a currency and you’re hoping that there isn’t a lot of
inflation so that your money isn’t devalued but not necessarily that your
money will grow over time so a lot of people now are looking at something like
a retirement calculator because they’re hoping that their money will go overtime
but that’s not what crypto initially was about so I’m not saying that’s wrong or
anything I’m interested in that as well however
it’s just something to think about so let me go find this big current
retirement calculator so actually there are many versions of it but the one
specific one that I’m talking about is called the Bitcoin savings plan it’s at
this link Jail op Jael OPP github the IO slash Bitcoin that savings – plan
another forward slash so it looks like this it’s called a Bitcoin savings plan
or how I learned to stop worrying and love the volatility or when should I
sell my bitcoins and he says inspired by rupiah Tevas SSS a sane and simple
Bitcoin savings plan on Bitcoin talked originally coded by D nine zero zero
zero I want to give credit I don’t know who jail op is I feel like
there’s someone on Twitter name Jayla and you can put in your initial
investment I’m gonna put my numbers in but I won’t tell you what it is so with
the initial investment amount and the initial exchange rate or not that gives
you the dollar amount of how many BTC you have in your specified currency
technically you can use this savings plan for any currency or any coin even
though it says BTC because you just put the how much one coin costs so for an
out coin that’s like six dollars you just put six instead of the price of BTC
and the rake amount is the percentage of your investment that you would take away
every time you sell some and the number of cycles is just how long you want this
savings plan how many times you want the selling event to happen and then the
cycle multiplier is at what point has your investment amount grown which you’d
sell the reek percentage so if you put your cycle multiplier as 1.05 for
example on your recomment at five percent then you would sell five percent
which is a rech amount when it’s your initial investment has grown to one
hundred and five percent so you could also have a cycle multiplier as twenty
point to zero and then you would sell 5% the reek amount at 120 percent when your
investment has grown by 120 percent and so if you think about this in the future
as a long-term thing then even though you’re taking a like five percent you’re
raking five percent every time it grows 120 percent that means that you’re
taking a larger amount with a bigger investment let me use actual numbers
okay I have to actually calculate this you would have 95 percent of 120 left
that’s one hundred and fourteen dollars and so with that 114 grows by 20% so you
have 120 percent of 114 is 136 dollars that you take five percent away from
that which would be times point nine five one hundred and twenty nine dollars
and then one hundred and twenty nine dollars would grow 20 percent and that
would continue so you could technically do this indefinitely if you set your
reek amount low enough and your cycle multiplier I guess high enough and you
can see it this is not time-based it’s price based so you could decide how
often how many cycles you want to go through let me try and put those numbers
in so say I had 50 BTC and I came in at ten thousand for one BTC and my reek is
five percent of my cycle multiplier is 1.2 then if we’re looking at the numbers
you’re not down five times ten which would be 50 percent BTC over time but
you’re down one hundred minus 76 24 percent over time even though the rate
percentage is the same over time you’re taking away less because the principal
investment amount is growing larger to a certain percent
20% every selling event the cycle multiplier is a price increase needed
for each selling events to occur it was kind of hard to explain I’m trying to
sort of explain this I don’t have that made sense but this is something that
you can use and I was just thinking that for any proof of state coin for example
say particle this savings fan does not factor in staking so actually it might
not work for every single currency but if you set your rate percentage lower
than the sticking percentage over time then that would be really good for a
proof of state coin so I’m not a finance person but and this is not investment
advice I hope so but I’m just saying that this is not investment advice it’s
not it’s just a savings 10 retirement thing that I found online and that you
can use if you want and there are many of them out there and I hope what I said
made sense and keep in mind what I said earlier about is it a store of value or
is it about better money decentralized money I personally have my own plan and
I’m don’t think I’m gonna use this because I like my plan better but this
might be useful to you and there are tons of other ones out there I didn’t
know this so I guess maybe you’ve seen all this before but I’ve never seen a
Bitcoin retirement calculator I’ve seen other you know like compound interest
sort of stuff but not this and that might be useful to you and yeah people
are using Bitcoin as a store of value and that’s just a side effect of the
blockchain and how it works in terms of the incentives and price going up over
time and that’s great but I hope that people also focus on scaling and
adoption because those things are really important and those are the things that
I mentioned in why I what do I wish for 2019 and that’s probably what I would
wish for every single year is scaling and adoption because that’s what made
things hitch in the past all right so take a look at this Bitcoin
savings plan maybe you never heard of it before thanks for watching my content if
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2 thoughts on ““Bitcoin Retirement””

  1. Is it calculating the "cycles" as 4 year halving cycles or one year calendar cycles? How is it estimating the rate of price appreciation?

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