Putting my money where my mouth is... (Reddit Bitcoin)
New username for this one.. Well, I'm doing it. For better or worse. I'm all in.
I just refi-ed my house, and putting my equity in BTC. I'm sure many of you will tell me that I'm nuts. Maybe you are right, but I think the math is pretty solid.
I don't day trade. I buy and hold. Don't need a lambo and I don't expect to get rich overnight. Yes, I did my research. Yes, I diversified my investments. If this fails, it'll hurt but I won't be homeless. I'll just retire a little later.
If it succeeds? Let's define success. I have lived in the same house for 20+ years. I bought a repo in a nice neighborhood for cheap and put a lot of sweat into it over the years, repairing and remodeling. I built of equity and worked hard to pay down the loan. In planning for retirement in a few years, I was reviewing my finances, and figured that the biggest investment in my life (my house) had a large amount of money just sitting there, as equity, not helping me get any closer to retirement. With mortgage interest rates near record lows and being one of the few tax deductions that I have, I thought, why not take advantage of this.
A couple of years ago, I started dabbling in BTC and ETH. Through it's ups and downs, BTC has been the best performing investment that I have ever had. I'm not high on hopium. I just understand how Bitcoin solves the problem of low friction, cross-border financial transactions, big and small. I think there's some "there" there.
So, I'm literally putting my money where my mouth is. If, BTC teaches $33k, my house is paid off. Success! If it reaches $115k, I'm retired. Success! But, if it only has a 4% annual return, it is still more than than it was earning before. Success.
My horizon is 12 years. Will I reach my goal before then? I absolutely think so. With a halving in 2020 and 2024, I suspect I'll hit those numbers way sooner. If not, I'll have lots of stories to tell.
I'm not suggesting that anyone follow my lead. You do you. But, this is the path I've chosen.
I'm grateful for my wife, who has patiently listened to me ramble about hashing, halving and hodling. She finally, graciously, agreed to this plan. I hope that her trust is well placed.
Not much more to say. My adventure begins now. I'll keep you all updated as we progress. I'm grateful for this current dip.