Bitcoin Generational Wealth The Prelude – Bitcoin Magazine – Bitcoin News, Articles and Expert Insights

generational bitcoin wealth: the prelude

This article was inspired by a fellow bitcoiner, @chadlupkes, and his constructive criticism of my first article on generational wealth. my first article focused too much on generational wealth calculations in his humble opinion and i took criticism of him very seriously. essentially my bitcoin brother would have liked to see more information on what exactly generational wealth is, the history of it and why bitcoin is the best form of generational wealth. thanks to @chadlupkes and the rest of my bitcoin brothers and sisters who make me a better writer because of their continued pursuit of life, liberty, and the pursuit of happiness through bitcoin. I hope you all enjoy this article that @chadlupkes and I collaborated on.

In the 21st century, most people cannot plan for generational wealth because in the fiat world, 401ks and pensions are the typical investment vehicles used to plan for a person’s generational wealth. Unfortunately, 401ks and pension plans are flawed because most of them are not adjusted for inflation, have exorbitant fees, and are poorly managed. Inflation is the hidden and insidious tax that stealthily robs Americans of the wealth they have stored in 401ks and pensions. Storing wealth in 401ks or pensions is like trying to hold water in a leaky bucket. The holes in your 401k bucket are inflation, handling fee ratios, upfront fees, late fees, hidden fees, overvalued businesses, taxes, and much more. These holes in your 401ks and pensions are why it’s hard for you to build generational wealth. do you think people like warren buffett, elon musk, bill gates and jeff bezos have 401k and pensions? I really doubt it. instead, they own cash flow-generating businesses that provide value to the world and are tax havens that allow them to maintain generational wealth. If you think 401ks are the way to build generational wealth, read Andy Tanner’s book “401(k)haos” and you’ll find that they are essentially ponzi schemes.

Reading: Bitcoin is generational wealth

generational wealth refers to wealth that is passed down from generation to generation in perpetuity. Those assets can be stocks, bonds, real estate, oil, businesses, and any other good or service that can support your family for centuries. The world’s richest families have assets they never sell, and those assets generate a steady stream of income so they and their heirs don’t have to. history shows successes and failures in the quest to create generational wealth. The oil industry created generational wealth for the Rockefellers just as Wal-Mart provides generational wealth for the Walton family. while there will always be opportunities to identify a new market and build a business within that market, bitcoin will be a generational asset to my family and it can be to your family as well.

I’ve mentioned some successful families, but there are also examples of families who gained great wealth only to lose it like the Vanderbilts, who if they stuck to the orange pill today, would probably have invested much of their wealth in bitcoin. this is because you would really understand that bitcoin is digital energy. bitcoin can be generational wealth for your family through its digital energy properties, like oil was liquid energy for the rockefellers. bitcoin is the first form of generational wealth that is akin to owning a power well that will produce perpetual amounts of energy.

See also: Bitcoin tops 60,000, a six-month high, on U.S. ETF expectations | Reuters

The biggest difference between storing your generational wealth in businesses, commodities, land or other assets that can be seized, seized or stolen versus bitcoin, is that bitcoin is not confiscable, as long as it is secured in a cold wallet. only people with the seed phrase can open the wallet and gain access to its wealth. The slow accumulation of wealth that comes from accumulating satoshis over time can build a foundation that can support any family. just a few thousand satoshis could allow a family to build perpetual wealth for centuries.

for those who don’t know, 1 bitcoin = 100,000,000 satoshis.

since time is money, think of satoshis as seeds of time. Every Satoshi you plant will become a Satoshi Weather Tree that will produce fruit and shade for your family for centuries to come. As long as your family diligently tends to your satoshi time tree orchard, you will produce and store value for future generations. Like any form of generational wealth, if it is spent faster than it appreciates, it will quickly deplete. this would be similar to his family cutting down the orchard of trees from satoshi time instead of allowing them to continue to grow and produce fruit. if you don’t adequately protect your trees from thieves (keep your own keys for cold storage), water them to nurture them (add more sats to your pile), and prune them to preserve them (only spend what you absolutely need for sustaining tree wealth). his family).

There is a generational wealth adage that the first generation creates the wealth, the second generation spends it, and the third generation wastes it. For this reason, it is paramount that every family has a plan on how to preserve their generational wealth so that it lasts forever. Most families that have generational wealth protect their wealth in trusts that only allow family members to take out a certain percentage of the money during their lifetime. If planned correctly, the amount of money family members withdraw will never be exceeded by the rate of appreciation of the full value of the trust.

See also: World&039s Largest Bitcoin Conference Returns to Miami for 2022 – The Miami Guide

for example, if you have $1 million of bitcoin and need $50,000 (5% of $1 million) per year to live on, as long as the remaining bitcoin capital, $950,000 appreciates faster than 5% per year who is living, you will be able to keep your wealth forever. since bitcoin will go up “forever laura”, your family will always have generational wealth as long as you don’t spend more than you earn. the norm thinks it’s a joke that bitcoin will go up forever, but it’s a true statement because there is a finite amount of bitcoin and a theoretically infinite amount of demand.

Most bitcoiners haven’t started generational wealth planning because they don’t fully understand how valuable their satoshis will be in the future. This wouldn’t be unlike boomers who bought a Ford Mustang in 1966 for a few thousand dollars and didn’t care for it until today, when it’s now worth over $15k. Had this highly sought after sports car been treated with great care and affection until today, the car would be worth close to $35,000. the object they once took for granted in the 1960s is now worth much more and most of them sold it long ago and are kicking themselves. bitcoin is generational wealth, so protect each satoshi like it’s a precious piece of your time! every satoshi counts and even the most optimistic bitcoiner has no idea how much their satoshis will be worth one day.

This article follows up on my first article on generational wealth, in which you can see how just $68 or $680 worth of bitcoin will turn into millions, in some cases billions.

this is a guest post by jeremy garcia. The views expressed are entirely my own and do not necessarily reflect those of BTC Inc. or bitcoin magazine.

See also: Understanding the Crypto Tax Rate – SpendMeNot

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