What if I told you that I no longer buy Bitcoin and that I had been working towards this for a very long time. You would most likely be confused, reasoning how I could be working at not doing something? It sounds like a contradiction in terms and quite simply counter intuitive. Well, simply put, I may not be taking my own money to buy BTC but my mechanisms will be earning and generating BTC for me well into the future.
Currently I do not own much BTC but have rather used my assets to create passive mechanisms, which means that a lot of my portfolio is in DeFi, staking and exchange tokens. I hold a significant amount of ETH but BTC currently only makes up for about 6% of my portfolio.
My largest weighting at the moment is in stablecoins. In the event of an absolute meltdown, I have the power to swoop in and benefit from what would be a tragedy for almost everyone else. It may never happen but I like the security and having an ace up my sleeve because this market and I have a very long and eventful history! I know what it is capable of, both bullish and bearish.
Built-In Portfolio Adjustment
Having such a small value assigned to BTC does not mean that I do not want to have BTC as a primary weighting but actually implies the opposite. Let me explain, in order for me to generate income I have to have the majority of my portfolio made up of mostly altcoins. This is why I designed an economy within an economy. My income is generated by an ever-growing economy/portfolio which has the economy that generates spendable income and another that generates Crypto for my long-term holdings.
What this in essence means is that my economy is now constantly growing despite withdrawing value every month.
The greatest appreciation comes every four years or so as my portfolio jumps by multiples with the bull market triggered by the halving. Slow and constant growth is maintained and achieved by passive mechanisms dedicated to economic growth. This is where BTC is being generated and will continue to be generated on an ongoing basis. It is not a hard and fast rule, so if I see an opportunity for long-term holdings I will redirect some of this flow. By constantly accumulating BTC this way, I do not pay for it and within years, BTC will become my heaviest weighting without any additional capital input.
Building passive mechanisms is my primary goal and motivation within the Crypto space. I try to be active in things that at least have a passive element to them, even if not entirely passive.
This is an article I wrote in November 2020, discussing 5 of the ways I generate passive BTC. Earning significant passive income comes down to two very important aspects. Firstly, having a significant amount of capital to work with, or having a large network of referrals/affiliates that generate ongoing passive income for you as they too generate income for themselves.
The most important aspect of building such mechanisms is to never become complacent but to always look at increasing your growth, income and financial independence. Please do not consider this financial advice, as I am merely sharing my views and actions in the market. Enjoy the journey!