Great questions. Of course it's a horses for courses scenario, and very much depends on each persons situation.
Love this kind of discussion.
In 2022 I was at the crunch end of a re-allocation process, selling other assets, in order to accumulate more Bitcoin. Huge decisions. Huge conviction required.
At that time I set a price target of 150k aud (it was trading spot at 30k aud) and a timeline of August 2025. I was thinking to trim the position by 10% on reaching either of the 2.
If possible, I like to stick to strategies, rather than alter en route. Now that we're pretty much at 150k, and a need has come up, I will take some Bitcoin and gift to someone. This is akin to taking profits at the pre-aimed for price.
Otherwise, there are only 2 things I really want 1) a family home and 2) a healthy living expense runway. The question then becomes, as you so rightly point out: 1) take profits and pay tax? or 2) take debt (not sure how) and leverage.
I am not happy with any of the debt products I've seen so far. Either counter-party risk is too high, debt term too short, debt amount too low. So I think I am leaning towards the take profits, pay tax, and although more expensive, less risk, and easier for peace-of-mind
Great problems to have!
Ps - I also like the idea of simply DCA out of Bitcoin as and when you need for expenses. I'd much prefer to be long Bitcoin, rather than be sitting on too much cash
Pps - this is a "hybrid trading strategy" in my mind, in that I am working on a multi-year time horizon, with the intention of re-allocating as the purchasing power alters
jakewoodhouse / Jake Woodhouse
npub1lt…6k4fh
2024-11-18 22:21:35
in reply to nevent1q…hueg
Author Public Key
npub1ltz38gwwmmg740r5qlqjn96gth5thv5wmhkwlgqks9lu3485q7jsy6k4fhPublished at
2024-11-18 22:21:35Event JSON
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"content": "Great questions. Of course it's a horses for courses scenario, and very much depends on each persons situation.\n\nLove this kind of discussion.\n\nIn 2022 I was at the crunch end of a re-allocation process, selling other assets, in order to accumulate more Bitcoin. Huge decisions. Huge conviction required.\n\nAt that time I set a price target of 150k aud (it was trading spot at 30k aud) and a timeline of August 2025. I was thinking to trim the position by 10% on reaching either of the 2.\n\nIf possible, I like to stick to strategies, rather than alter en route. Now that we're pretty much at 150k, and a need has come up, I will take some Bitcoin and gift to someone. This is akin to taking profits at the pre-aimed for price.\n\nOtherwise, there are only 2 things I really want 1) a family home and 2) a healthy living expense runway. The question then becomes, as you so rightly point out: 1) take profits and pay tax? or 2) take debt (not sure how) and leverage.\n\nI am not happy with any of the debt products I've seen so far. Either counter-party risk is too high, debt term too short, debt amount too low. So I think I am leaning towards the take profits, pay tax, and although more expensive, less risk, and easier for peace-of-mind\n\nGreat problems to have!\n\nPs - I also like the idea of simply DCA out of Bitcoin as and when you need for expenses. I'd much prefer to be long Bitcoin, rather than be sitting on too much cash\n\nPps - this is a \"hybrid trading strategy\" in my mind, in that I am working on a multi-year time horizon, with the intention of re-allocating as the purchasing power alters\n\n\n",
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