Timing The Top?
As Bitcoin continues to print new all time highs, many are feeling the excitement of the bullish euphoria that has recently been ignited . BTC will go on to form much higher highs in 2021 and surprise even the most bullish of us. This is of course my own conviction and belief and not necessarily how events will actually play out. However, this is the skill that an effective investor needs to practice and hone as much as possible. Effective investors view the world in the future and begin to position themselves today, in order to profit from tomorrow.
Unlike many others in the Crypto space, I am not concerned about timing the top, even when it comes to altcoins. I am not concerned for the simple reason that I will not be selling. Some may consider this a crazy idea but this is not a trade for me, it is not even an opportunity to generate wealth! This is a plan to create ongoing Passive Crypto Income. My readers will be aware of the almost obsessive manner in which I have addressed the idea of building an ecosystem or economy, of Passive Crypto Income systems.
This becomes very significant if the construction of this system is done prior to a bull cycle. Some months back I began shifting into coins that could either be utilized for liquidity mining, smart contracts or staking. For those paying attention, you may have caught on to my train of thought. I do have a handful of trades that I will be looking to offload at the top but for the majority, it is a one way ticket.
Consider for a moment the all time high prior to the notorious 20K all time high of 2017. This was approximately $600 and even though BTC went on to create a new all time high at 20K, the price did not retrace to $600. Despite the brutal bear market of 2018 and 2019, the lowest level BTC retraced to was just above 3K! This is almost 500% above it's previous all time high.
What needs to be considered is that after a possible blow off top in 2021 or even 2022, the floor that is likely to catch BTC is still north of 100K. What is also very important to note is that due to the macro picture, Bitcoin may not even retrace as severely. In the event that it does, generating passive income with my current system at a $100K + Bitcoin price is still extremely attractive to me.
Further Benefits To Hodling!
Unlike every single person that bought Crypto via PayPal, I am not trapped in a scenario in which I have to create a tax event in order to take possession of my Crypto assets. Selling your BTC, ETH or any other altcoin will incur capital gains taxes. However, holding assets indefinitely causes your gains to compound and if I am in a position where I need a bulk amount of cash, I can lend against my BTC or ETH.
In this way, I receive a lump sum that is not taxed. The servicing of this loan can also be payed back over any period of time and monthly interest from investments such as BlockFi can be utilized in order to service the debt.
This enables me to gain access to capital with zero tax implications. For me, it is all about creating my own economy that looks after me first. Every other economy is geared to create worker bees out of the participants. If you want an economy to service you and your life, you have to create it yourself and tailor it to your own needs.
