What Is Your Exit Strategy? (When the dollar is collapsing)
So many people on the internetz talk about some coin, reaching XX dollars, and then, if they have so many coins, then they can retire.
So what if they have 1000 XRP and it goes to $1000 a token? You now have a million dollars, what do you do with it?
Do you exit out of crypto (which is going up) and into dollars (that are going down)?
Do you round trip your coins? You had a million dollars, now you have $100k.
Do you dare park your crypto in stable coins? Which ones? None of them have had a proper audit.
What if you get out bitcoin, and it shoots to over a million per, and then become unobtanium?
Is there even a way out?
In the past…
Back, in the before time. Everything was based/priced in dollars. Stock goes up, more dollars. Stock goes down, fewer dollars.
Since the "dollar" in one form or another has existed our entire lives, then we have become used to calculating our gains in dollars. And, the exit strategy was to convert to dollars.
As long as the investment was smaller than the dollar market, selling out, into dollars was the way.
(There are things/investments that are larger than cash. Imagine Musky could sell all his stock for current market value. What would he do with a trillion dollars? It couldn't even be moved, physically, into a bank vault. There aren't enough liquid dollars in the system to settle that, even digitally. It would take a team of accountants forever to free up that much in liquid dollars, and consolidate it in one place. M1 is only 20 trillion dollars. So, we give Musky 1/20th of all the "real" money?)
The dollar was the benchmark, that all investments were measured in.
Today, the dollar is crashing
What i find weird is that everyone knows the dollar is crashing, still (almost) everyone measures crypto gains in dollar terms. Even me.
What else can we measure gains in?
21 million bitcoin
21 trillion dollars in M1
When bitcoin reaches 1 million per, then it will be the size of M1. (Not M2, nor M3)
21 million bitcoin
30 trillion = gold market cap
When bitcoin reaches 1.5 million per, then it will be the size of the gold market.
M1 and Gold are extremely small markets. Compared to all the derivatives that are built on top of them
This graph is a bit old, so the numbers are not current. Graphic buy goldsilver.com
Gold and bitcoin may become the thing we measure wealth in, someday in the future, but right now, on the dollar is big enough.
Also, gold and bitcoin are currently measured in dollars, so, even if you measure your crypto in ounces of gold, you are just using a proxy for dollars.
The future…
I believe that we will switch over to bitcoin as our unit of measure. And, this is only because it appears that we will soon have several, large, basket currencies. BRICS currency. The new, gas/oil/gold/btc backed treasury printed dollar. The new EURO.
And, the rich have become globalists. They need a measure that is international world encompassing. And they will probably all agree on bitcoin. Bitcoin will become the thing that nations settle their trade debts in. Bitcoin may become the currency of international trade, and then there won't be any trade debts to settle. Even still, large corporations will pay each other in bitcoin.
And so, the satoshi may become the international "reserve" currency. (A bitcoin may become a mythical entity. "No one has a whole bitcoin", people will say. (psst, don't tell them that you have a couple)) Satoshis, milli-satoshis, micro-sats will be the units stuff at the store are priced in.
I also believe that gold will become (for reals this time) an archaic relic.
So, when bitcoin goes to a quarter of a million dollars this winter, will you sell into dollars at what you think is the peak?
There is only one sure way to exit. And that is buying commodities and land for a homestead. If you own your house and your garden, and that is feeding you, well then, you are pretty close to self sufficient. A good investment. But, in dollar terms, you may be missing out on even higher values. But, but, you won't lose everything either when the market crashes. And you will be perfectly fine when the dollar crashes.
Measuring your wealth in dollars may be the only game in town right now, but it is breaking down.
Bitcoin maxis are saying "stack sats", and, over the long run, it may be the best way. Forget about trying to time the market. Forget about the fear of round tripping. Just keep acquiring more sats. It is definitely A way.
Betting on ETH, XRP, Litecoin, or even DOGE may pay out hugely. In fact, any one of these, if the financial system truly moves into crypto, will see 100x-1000x gains. You may be wealthy in the future from just collecting satoshis from a faucet.
There are indicators from the future, that A satoshi will buy your weekly groceries. And, if so, just stacking sats would be your best path.
But, most of the smaller coins will move faster than bitcoin. So, trading in and out of those could get you a larger bag.
It is just a pain when you need to get out of the crypto market, and the dollar is falling. What will you do?
What is your exit strategy?