Buying bitcoin with your paycheck before anything else ensures a practice of saving and accumulation.
Unless you buy bitcoin with your paycheck first, you can always find another purpose for your excess income. I’ve been an advocate of “paying myself first” my entire life, I started investing in my early 20s using auto asset building via no-load mutual funds, and in my 40s, I continue to do the same, although I have altered my asset allocation to predominantly bitcoin.
Routine dollar-cost averaging (DCA) makes HODLing for the long term easier to accomplish for me. Rather than focusing on the value of what I have (which I’m not going to spend as long as I have fiat cash flow), I focus on adding to my satoshi stack. Time is your greatest asset and if you’ve been routinely stacking for the last few years, you have a receipt and equity in your future.
Bitcoin’s scarcity is its most valuable property. The monetary policy and decentralized enforcement of it by the holders and full node operators is key. No longer do we need to trust individuals, instead, we can rely on human action and incentives to do what’s best for Bitcoin and ourselves.
There are many ways to stack bitcoin; there is no right or wrong way and time and price appreciation will make anyone who does so look like a genius. The point is, just keep adding to your stack; at present, one can acquire 10,000 satoshis for $5, an amazingly large amount for such little fiat. In addition, one can begin an auto-DCA which will continuously add to one’s stack.
If you’ve committed to HODLing, you evidently understand bitcoin’s long-term value proposition, and you should also be stacking no matter how much you already have.
Bitcoin is limited in supply and demand is almost infinite as long as fiat currencies continue to cannibalize themselves via excess production to satisfy the debt-laden economy.
I recently read “When Money Dies” by Adam Ferguson about the hyperinflation that took place in Weimar Germany post-WW1. The parallels with what we are living through today are astonishing. The German people were absolutely powerless; their life’s savings, the storage of all their lifelong hard work, was destroyed by their leaders. The same is happening now; it’s tough for most people to identify, but if you’re paying attention, it’s happening. Fortunately, unlike the Germans of the early 1900s, we have “Fuck You” money, a money that can’t be debased and or altered. Don’t let a day go by that you earned a cent and didn’t stack a sat to show for it.
Garnish your wages, pay yourself first. Listen to me now and believe me later.
Your pal, FF2K.
This is a guest post by FF2K. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine