Stacking Sats:
As I’m writing this article, bitcoin continues its correction from its all time high of 69k and there is an epic battle at the 40.5k area. Chances are if you have been following this column and decided to buy bitcoin for the first time you are down at this point. Again I reiterate this is not investment advice! It is merely my strategy and an asset I believe in, as they say, “don’t tell me what you believe in, show me what’s in your portfolio.”
In this column I have talked about the mental aspect of investment. Everybody wants to back a winner and nobody wants to buy a loser, fear takes over when the asset is down, greed leads you to buy when the asset is up. The single phrase that has been the most influential for me and I repeat to myself is “stay humble and stack sats” from Matt Odell.
A satoshi or sat is the amount of bitcoin after the denominator. 1 bitcoin is equal to 100,000,000 sats. Dollar cost average or “stacking sats” is essentially the savings account strategy of bitcoin. As opposed to the traditional savings account that you get a penny a year, your sats have the added benefit of appreciation in what has been one of the best performing assets of the last 10 years.
This approach is not filled with glamour, it’s not a get rich scheme. It’s showing up and doing that boring thing every week which ultimately leads to your success. If you develop your conviction, keep a little extra money that you’re willing to save, you may find yourself craving the dip. Patience and foregoing greed pays in this instance and you have a lower cost base.
Stacking sats weekly is great. You can get $10 in sats paid to you if you start your savings account at www.swanbitcoin/btbtc.com. Here, the guess work is taken out and you can smash buy when the cost is down if you have a little dry powder around. Remember those dollars in you checking and savings account are losing purchasing power year over year. One way to get poor quick is watch your checking account grow.
Another way to stack is through the fold card. You can create an account using the Fold app, load your card which is used as a debit, and stack sats through your purchases. You’re getting rid of dollars and collecting bitcoin, win/win. They have a daily spin wheel which is kind of fun, online deals, and flash sat back events. It’s a good way to ABS, always be stackin’. I have a referral code for fold as well, https://use.foldapp.com/r/7TK7WJKN.
As the Bitcoin economy matures there will be options to gain interest on your capitol. At this time it’s not worth giving up your keys to a third party but we we’re early on and this will grow. Some of the companies working on bitcoin backed loans are BlockFi and Unchained Capitol. Large financial institutions like Goldman Sachs are also exploring Bitcoin backed loans. As this economy grows you may be able to put your money to work for you but as always with Bitcoin, patience and long time preference are key.
If you want to grow your stack: get off zero, dollar cost average, learn, get sats back and earn sats from your stack.
What I’m Listening to this week: this isn’t really bitcoin related but its New Years so I’m into motivational stuff, deal with it.
Bes,t BTBTC