7 Reasons I Have 50% of My Net Worth in Bitcoin
I saw an interesting thread of the r/Bitcoin subreddit asking a simple question:
What % of Your Net Worth Do You Have in Bitcoin?
Bitcoin is 50% of My Liquid Net Worth
Right now, I currently have 50% of my liquid net worth in Bitcoin as a default savings account and hedge against hyperinflation.
It didn’t start out that way. I bought my first BTC in 2019 for just $20 and slowly built up my stack over time using Bitcoin DCA.
Now, I believe Bitcoin will make up the majority of my net worth after the next halving if my $500,000 Bitcoin price prediction by 2025 comes true.
7 Reasons Why I Have 50% of My Net Worth in Bitcoin
1. Hedge Against Inflation
Investing in Bitcoin aka “digital gold” is a simple way to hedge against inflation.
Inflation is running rampart across the world as fiat money marches towards its true intrinsic value: zero.
There is nothing you can do to stop inflation from stealing your time and forcing you to work until you die.
Watch the movie “In Time” on Netflix or Amazon Prime and read the financial lessons I learned from the movie to understand exactly how inflation robs you of your savings.
2. HyperGrowth Gains
Bitcoin is the most “alpha” asset you can buy in the 21st century thanks to its fixed 21 million coin limit and usefulness as a default global reserve currency.
BTC is up 23,170% over the last 10 years and turned a lot of people into millionaires.
There are so many criminal CEOs and executives on Wall Street that steal your money by diluting shareholders just like the Federal Reserve diluting our money supply.
It’s getting harder to trust the stock market these days when most management teams only care about getting multi-million salaries and fat bonuses.
An example is Gamestop CEO Ryan Cohen who defrauded retail investors out of millions of dollars by pretending to save Bed, Bath, and Beyond.
Billionaire CEOs are very sneaky and will dump their shares on poor unsuspecting investors in a heartbeat.
However, Bitcoin offers outperforming gains without the 3rd party risk of a greedy CEO or deceitful management team
3. Retirement Nestegg
Most Americans have no retirement savings and must work until they die. No matter where you live, you need money along this journey called life so don’t joke around with your retirement.
Bitcoin is a default retirement account for crypto investors who don’t trust their 401k, IRA, or inheritance to take care of them when you want to retire.
4. Backup Emergency Fund
Building an emergency fund is a must for any investor to protect yourself from job loss, health issues, or a failed relationship.
You need FU money just in case your boss disrespects you so you can quit with dignity and find another job. The EEOC lawsuit against Tesla is a prime example why having an emergency fund is so important.
These African-American employees faced racist slurs or injustice every day at Tesla’s Freemont factory but couldn’t afford to quit their jobs due to lack of savings.
Bitcoin fixes this problem and makes building an emergency fund a breeze.
Your emergency fund empowers you to leave a toxic workplace at the drop of a hat. Respect your time and don’t allow finances to keep your working a job that doesn’t respect you.
5. Hard Money Collateral
Bitcoin acts a hard money collateral that can be borrowed against to buy a house, pay off debt, start a business, or anything else you need money for.
YouHolder and Binance offer low interest rates loans against your Bitcoin and more lenders will offer this option in the future.
6. Legal Protection
Divorce in western countries robs most men of 50 to 75% of your net worth once the dust settles.
You lose 50% of your life’s work just because your spouse wasn’t “happy”. The truth is no one can make you happy because true happiness comes from within.
There are too many godless men and women who will bankrupt their spouse in a messy divorce.
Bitcoin protects your assets against messy divorces and breakups. Transfer your assets into Bitcoin and send your BTC to a cold wallet overseas or foreign crypto holdings company.
By law, most countries cannot confiscate assets in foreign countries, so your assets stay safe and away from your greedy EX.
7. Inheritance for Your Children
No one lives forever and your children (or heirs) will need money to survive in the future. Bitcoin is a wonderful gift you can offer your family one you die to keep them safe and financially free in a world full of inflation.
Why I Don’t Have 100% of My Net Worth in Bitcoin?
I’m 37 years old and don’t want 100% of my net worth in any single asset to protect myself from unexpected losses or issues.
Bitcoin has a 99.9% uptime rate but that could change in the future. Nobody knows what will happen and I don’t want to be greedy with my asset allocation.
Another issue is not having enough money to pay bills or enjoy life if you have 100% of your wealth in Bitcoin.
Trading your Bitcoin for food and rent is a bad long-term decision because you trade BTC for depreciating assets.
I solve this problem by keeping some of my net worth in stocks, Litecoin, and cash so I don’t spend any of my Bitcoin prematurely.
