https://www.reddit.com/r/Bitcoin/comments/1h5ktle/when_hodlers_retire/
created by Bowie19101999 on 03/12/2024 at 10:54 UTC
0 upvotes, 9 top-level comments (showing 9)
So i'm wondering what will happen when HODLERS sell their bitcoin and cash out?there will be loads of supply, price will dip
Comment by BitcoinAcc at 03/12/2024 at 11:16 UTC
20 upvotes, 1 direct replies
That's not how hodlers retire.
You are still stuck in fiat-think.
You assume that a hodler only keeps their Bitcoin until they have reached enough fiat worth to retire, then they sell them all for fiat to live off that fiat (possibly in conventional investments) during retirement.
That's not how true hodlers do it. Why would they sell their stash of the hardest asset for depreciating fiat?
Instead, the retired hodler simply spends their Bitcoin to fund their retirement. I.e. they spend it sat by sat for whatever they need (food, transportation, necessities, utilities, housing, travel, luxuries...). In the current financial system that means using fiat as a payment layer, i.e. selling small batches of Bitcoin for fiat over time (like reverse DCA) to then spend that fiat, only selling more Bitcoin as the fiat runs out (and as said, not all at once).
In the future, it may become possible more and more to spend Bitcoin directly, without going through fiat first.
Also in the future, it may become possible to safely borrow against the Bitcoin stash, thus opening avenues of spending without selling. But that's in the future, and probably only for the large hodlers.
With this type of hodler retirement, there is no armageddon moment when lots of hodlers suddenly decide to flood the market with their holdings, to "cash out".
Comment by Hertenbek at 03/12/2024 at 11:01 UTC
7 upvotes, 2 direct replies
You think all of them made an agreement to sell at the same time???
Comment by MemeTraderYolo at 03/12/2024 at 10:56 UTC
6 upvotes, 0 direct replies
Are we talking about the Winklevoss twins (who will just sell OTC anyway), or your regular Joe?
Trust me, the market won’t even budge if people cash out and retire.
Comment by Necrogomicon at 03/12/2024 at 12:33 UTC
3 upvotes, 1 direct replies
There is no sell, only HODL
Comment by Secret_Operative at 03/12/2024 at 16:15 UTC
2 upvotes, 0 direct replies
We are all planning to retire, and cash out on the same day. It's August 19th 2032. There will be a massive dip to $8m, so get yerself ready.
Comment by Amber_Sam at 03/12/2024 at 13:15 UTC
1 upvotes, 1 direct replies
when HODLERS sell their bitcoin and cash out?
That's not how Bitcoin HODLers retire. Selling all corn would be a disastrous move. More like a few % a year.
https://bitcoincompounding.com/
Comment by omg_its_dan at 03/12/2024 at 15:50 UTC
1 upvotes, 0 direct replies
Cash out? lol
Comment by Zestyclose_Phase_645 at 03/12/2024 at 19:47 UTC
1 upvotes, 0 direct replies
I feel like you're a long way from retirement and don't really understand how retirement works. You don't cash out all at once. You set aside enough stable assets to get you through a few years of market fluctuations, and evaluate your outlook a couple times a year.
For example, let's say you are retiring today and have 15BTC, your annual expenses are $50,000. You sell 1.5BTC, put $50k in a HYSA at 4%, put $50k in a one-year bond at 6%, and $50k in a two-year bond at 5%. Next year you re-evaluate, see that bond rates are low and that BTC is down 30%, so you don't do anything. Next year BTC is up 100% and bond rates are at ATH, so you set up a bond ladder at a discount with solid returns for five years. Rinse and repeat.
Comment by Some_Tax2898 at 03/12/2024 at 12:01 UTC
0 upvotes, 0 direct replies
Yes, that's what we do. Crypto veterans love you very much, young people, it's good to have you.