Image by Joe from Pixabay 

Do you receive daily emails, ads, videos, and games, promising to turn you into millionaires in a few hours? The faucets work on the logic of getting the unfortunate to watch hundreds of videos that promise incredible earnings without doing anything, paying them at best $5 per month. It's banking logic. The bank never loses, nor does it give away anything. If this is not understood, it makes no sense for you to continue developing in the crypto sphere.

But of course, it's not just faucets that lie. Also, high names in the crypto sphere send messages daily to do margin trading, to win fabulous sums (obviously, first by depositing cash or crypto) or fabulous giveaways that end and the list of winners is never published, or encouraging you to make a video of TikTok that remains completely forgotten.

However, because there is a fantasy that one is going to get rich buying cryptocurrencies, the developers flood us with all this garbage that ends up being an incestuous lie, worthy of criminal prosecution.

However, financial independence exists as a concept, and it seems to me that nothing else than a concept. Still, if the average person could achieve financial independence, I believe the only chance to do so is with the tools of the crypto sphere. Surely you're not going to achieve it working as an employee to enrich others, or with an independent business that doesn't grow beyond what independent businesses normally grow.

Our generation has received a gift from heaven, a unique opportunity that no other generation in history has received. It's worth a try.

First I want to make a brief description of the much talked about “Financial Independence” with a series of definitions, and then let's try an ethical approach.

Definition 1. Rest of my life (ROML). The number of years I plan to live the life I want from today.

Definition 2. Monthly Cash Needed (MNC). The amount of money I need each month to cover all my expenses, including taxes, and live the life I want.

Definition 3. Financial Independence (FI). State that is achieved when I have in my possession in the form of cash all the product of MNC * ROML. It is very important to have ALL THE MONEY IN THE FORM OF CASH today to be able to say that I reached FI. It cannot be depended on whether the MNC * ROML product depends on the future value of the assets that make up the investment portfolio, nor that any asset is a movable or immovable property because we all know that a property has a value if it is not for sale, and quite another when it is put up for sale.

Posts that talk about “making money” in the crypto sphere fall into two distinct styles: the “romantic” ones who believe in “financial independence” and the “Wall Street oriented” ones who seek 100x or 1000x gains.

I am going to start with a concept that can be controversial: there are only two social classes, contrary to the popular myth that there are three social classes.

There is nothing that can be defined as “middle class”. On the one hand, there are the rich who are the owners of the means of production, who received them by inheritance and/or bought them in the market, and on the other hand, there are those who work to pay their expenses. The former belongs to the rich class, and the latter to the working class. In other words, there are only two social classes, the rich and the workers. The rich also include politicians, senators, and judges, who, while neither working nor usually wealthy by inheritance, build their financial independence through lifelong parasitic work.

Image by Gerhard from Pixabay 

The issue is very simple, if you have to work to pay for your food, then you belong to the working class. It does not matter your university degrees and the privileged education you have, the number of languages you speak, or the privileged position you occupy in a public or private company. If you get fired and have no income and therefore can't go to the supermarket, then you belong to the working class.

The middle class is an invention of capitalism and does not exist as a social class. It is just an imagination, an aspirational that feeds consumption through credit. For example, oil corporations jointly with banks incentivize auto corporations to develop cheaper cars so that “middle-class” families own several cars. The result is congestion on urban highways and a dizzying increase in billing at oil companies. You don't have to have studied at university to understand this.

Speaking of universities.

The establishment, that is, the combo of power interwoven between corporations, banks, and governments, included the university for about 100 years, in general terms, higher education, that is, that which is obtained after fulfilling the first commandments of the current brainwashing in each country with which their adolescents are instructed.

The university was a genius invention to create the illusion of a class that sits between the rich and the working class. One studies like crazy for, say, 6 years, complies with the government mandate to "pass" some 50 subjects in exams, some of which you would never have studied, and after "an enormous effort" leaves the university cloisters with a piece of paper that says “Mr. John is an Engineer”. So, he/she goes out to life to look for a job, and generally, he/she gets it as a cog in a mega-corporation that will pay him/her a salary so he/she can go to the supermarket. Sometimes, much more, but it will always be an infinitely lower quota than what the gear made possible as profits for the corporation.

The worst problem at the university is that the individual believes that, having spent 6 years studying, they belong to a new social class, that nothing exists except in the imagination of the establishment, and that it is destined only to promote the consumption of products that "identify" that middle class.

Some university students will also be entrepreneurs, for which it is not necessary to study anything. But that doesn't change, even if he/she owns his/her business, if he/she has to depend on working every day to eat, then he/she's still working class.

The result of this system is that 99% of the wealth on the planet is in the hands of 1% of the world's population. Even an idiot realizes that this system doesn't work. In other words, 99% of the world's population belongs to the working class.

It goes without saying that I do not use the term "working class" as derogatory, but quite the opposite, as highly flattering since work is the way to demonstrate ethical behavior in anarchy.

Then the most important issue appears, time.

Financial independence, according to my criteria, has to do with time and not with money. Financial independence is the exact mix of time and money. There is no direct correlation. Many rich people who have the financial means to live lustful lives do not have the time to do so. The rich who do not have time to enjoy their wealth is just as or more dependent on money than the working class who have to work to eat.

For the first time in the history of humanity, technology such as the blockchain and the associated decentralization allows one to approach financial independence, that is, to not depend on anyone other than oneself to eat.

Why am I saying this?

To achieve financial independence, one has to refer to time, that is, the first budget for the number of years one intends to live. Then calculate how much money you need to live each of those years in the way you fully enjoy life, and then multiply.

But that money must be had now! Of course, to say that we are financially independent, we cannot depend on the volatility of any asset or the safety of any company, no matter how virtuous it may seem to us. The truth is that I would not entrust such a large sum of money to any company, no matter how solid it has shown me. The years have made me the most skeptical person on the planet and I don't think it's going to change anything.

A simple calculation, if I need $50,000 per year, and I plan to live another 50 years, the sum that gives me financial independence and allows me to live my life in my style and without depending on a monthly salary is $2,500,000. I don't trust that money to anyone, and I can't keep it in my house, or dig a well in the garden and draw a map so that my children can find it one day.

That is where decentralization assists us. That figure can be stored in the crypto sphere without risk or with minimal risk if one correctly chooses where to distribute it, and without any authority or company being able to confiscate it from us.

You will tell me, all very well, but how do I access that sum?

The crypto sphere is the only way ordinary people may reach that sum. I affirm this because of the fractional characteristic of cryptocurrencies that no other asset has. Few at the moment have realized the enormous advantage of operating with fractional assets. No asset can be traded with the same flexibility that the fractional feature of cryptocurrency gives you. You can't sell the window of a house if you need cash. But you can sell 0.0003 BTC and get cash immediately.

No worker of any company in the world will ever be able to achieve the money necessary to live with financial independence for an honorable number of years. In the cases of very high-level executives who spend their lives on planes and airports, obeying orders and living their lives in the utmost anguish without seeing their families or enjoying a relaxing night with friends, when they finally manage to free themselves from that jail find themselves with enormous pensions and with, at most, 10 more years to live, in deplorable health conditions. Such is the system that capitalism imposed. In the case of middle or low-level executives, we cannot even say that they have access to decent pensions.

In contrast, an ordinary man or woman, accumulating blue chip crypto, could achieve financial independence many years before he/she retires, without having to live life obeying orders in a corporate glass box, without having to ask permission to transfer his/her money wherever he/she want, and without having to trust a company to guard his/her assets. This is independence.

As I said earlier, financial independence is a formula that meets your money needs and the lifetime of the life you want to live.

These are times with special characteristics. They are neither worse nor better than the ones that I have lived through for 6 decades. They are special. The inflation rate of all countries is much higher than what is reported by the media. So, as a general rule, you shouldn't have fiat money. In other words, you have to get rid of fiat money as soon as possible. But be careful where you put it. You should not buy government or company bonds, or lend cash because the risk of not receiving it back is very high. On the other hand, if you need money, it is not a bad idea to borrow it, since the interest rate you are going to pay will be less than inflation, and your debt will tend to melt. But the most appropriate thing is that you invest cash in Real Estate or in Crypto. Investing in Real Estate does not necessarily mean the purchase of new properties, but also the maintenance and improvement of existing ones.

I will show you what I am doing as a strategy aimed at financial independence.

A- Assembly of the investment portfolio. As follows:

• BTC = 50%
• ETH = 30%
• Altcoins (ADA, VET, AMPL, MATIC) = 10%
• Defi (high-risk platforms) = 10%

B- Implementation of a DCA tactic. Investment of a fixed sum of fiat money in a fixed period, in each of the components of the portfolio. The investment frequency can be weekly or monthly.

In short, the money you receive today paid for belonging to the working class has to serve you to pay your expenses, to live the life you want, and to save through DCA an amount of money that allows you, if the stars turn to line up, someday obtain financial independence. That is why I say that it seems to me more like a utopia than a reality, and that very few are going to be able to achieve it. But those who make up will do it thanks to the crypto sphere, and not to any other type of work.

I developed a small model in Excel so that you can see how the set of variables works from a monthly DCA investment. Here I present some results that may be interesting.

Suppose you plan to live the life you want for another 30 years, and that you can invest $500 a month in your portfolio using a DCA tactic, starting with your current portfolio valued at around $20,000.

• $300 in BTC
• $100 in ETH
• $50 in Altcoins
• $50 in Defi

I present to you three one-year scenarios of DCA investments, a “low” one in which prices multiply by 2 in the next year, another “medium” in which prices multiply by 5 in the next year, and one “ high” in which prices are multiplied by 15 in the next year.

Low Scenario (2x)

Here we see that a low scenario and DCA tactic of $500 per month can lead to more than doubling the number of months in which you are financially independent.

Medium Scenario (5x)

This scenario gives you almost six times the number of months in which you enjoy financial independence.

High Scenario (15x)

Well, this looks more like what we're looking for. But you're still more than $700,000 away from reaching your goal.

(Warning. You have to deduct taxes. Each country has its own way of stealing through the taxes it applies, so I leave it up to each one.)

As can be seen, the chances of achieving financial independence, belonging to the working class are quite remote, if we use a conservative tactic like the one I showed. Logically, if we bet on higher risk with Defi, we could obtain much higher results. Or lose everything...

Now, since the supposed financial independence would allow us to live without working, a deep question arises:

Is it ethical to live without working?

No.

Nor is it ethical to work without a sense of work, as an employee of a corporation works. But living without working is contrary to the laws of thermodynamics and the possibility of maintaining a sustainable system, that is, operating under stable and similar conditions for a long period of time. In anarchy, the individual must always work so that there is an exchange of energy that is in accordance with natural laws. Not working is not only harmful to the individual, but also to the system that contains it. Besides, not working is very boring. What could be a blessing for many, in reality, is an opprobrium that destroys the relationship of the human being with nature, since nature does not give away anything. It is not for nothing that the famous saying "There's no free lunch" exists.

Conclusion

Honestly, I don't think prices are going to multiply by 15 in the next year. That's why I find it so difficult to achieve financial independence. But if it is not through the crypto-sphere, you will never reach it, no matter how good your corporate position is. The only alternative that I see is that you can access an inheritance of several properties, and you can sell them in order to convert them into cash when you need it. The rent of many properties is not going to give you financial independence, in the case that the collection of that rent is not considered a job. But how many have such a generous Aunt Greta?

I particularly believe that the best way to achieve financial independence is by lowering your monthly needs and continuing to grow in this new technology called blockchain which can bring us much more than financial independence.

Thank you for reading! Decentralize yourselves as much as you can, and much more! Work for yourselves, not for others. When you work for someone else, they pay you what YOUR POSITION is worth, when you work for yourself, they pay you what YOU are worth. No one achieves financial independence by working as an employee. Live long and prosper!

Never forget:

As usual, none of the things written in this post are financial advice and are not intended to replace personal research. My sole intention in writing this post is informative. Several of the things discussed here could be wrong, so in no way can this post be construed as financial advice, and in no way should it replace your own research.

If you have any questions or comments, please feel free to leave them down below

You can also contact me at [email protected]

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