When Should I Sell My Bitcoin?
Tools to help plan for Bitcoin retirement
Bitcoin may be trading around $20k today, but that’s not the price many of us value it at. It’s going to take way more than $20k to separate ourselves from our Bitcoin.
Whether you just started stacking and hold 10 million sats, or are holding 6.15 whole coins, our goals may differ, but we agree Bitcoin is the ultimate form of saving.
Some are living off their Bitcoin, while others treat it as their retirement plan. Many of us are banking on the value of Bitcoin being “∞/21M” which would make Bitcoin worth significantly more than we can imagine.
When it comes to selling, many Bitcoiners have never sold a single sat. Some might never sell. Being at peace is the ultimate goal, and the decision of spending vs saving is a personal one.
However, most will part with [some or all of] their Bitcoin at some point. Money is of no use if you can’t spend it. Maybe you want a house, have a medical bill or want to go on a baller-ass vacation.
Ultimately, when to spend is a tough decision we are going to face. It can be damaging spending some Bitcoin followed by a price increase of 10x. We’re definitely not suggesting you blow the load at once. As a matter of fact, there are a couple of tools out there to help with this.
These two tools give a better idea to plan for the future. They are slightly different but achieve the same goal: When you should spend your Bitcoin.
Jimbo’s “Wen Moon” Calculator.
https://observablehq.com/@jimbojw/wen-moon
“Helps you estimate the date after which you can live forever on a given Bitcoin stack size”
It’s pretty simple. Input your stack, your desired yearly expenses, and play around with inflation and appreciation rates. (Give it a little bit to load all the input fields)
Jimbo calculates the day your first sale happens in order to never run out of money. PRETTY SWEET!
Lopp’s Bitcoin Savings Plan
https://jlopp.github.io/bitcoin-savings-plan/
Jimbo is more focused on a specific sell date and never running out of money.
Lopp’s tool estimates when to sell Bitcoin based on price milestones. This tool can be a little confusing, but here’s how we understand it.
Initial Investment = Stack size
Exchange Rate = Price of 1 BTC
Rake = How much of your stack to sell per cycle
Cycle = Any desired time period
Cycle Multiplier = the increase in 1 BTC price per cycle
So if your Multiplier is 2, your calculations are made every time Bitcoin’s price doubles.
The Dream
These aren’t tools you should plan your life around. They are simply guides to give you a better idea. We have no clue what Bitcoin’s price will be in any given timeframe so your estimates can be completely useless. ALL YOUR MODELS ARE DESTROYED!
Whatever you plan to do with your Bitcoin, the idea of living off it for the rest of your life sounds like the dream. May all our Bitcoin wishes come true.
Keep stacking plebs.
