Shownotes
How can you invest enough to buy one bitcoin? The math is pretty simple when you break it down for DCA investing. In this week's episode I look at the really simple math behind what you would need to buy one bitcoin in a specified time period. Want to accumulate a bitcoin in the next ten years? Take a listen and find out what it takes!
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I can be reached by email at mcintosh@genwealthcrypto.com and on twitter at @McIntoshFinTech. My mastodon handle is @mcintosh@podcastindex.social. Looking forward to hearing from you!
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Music Credits
Rock Guitar Intro 07 by TaigaSoundProd
Link: https://filmmusic.io/song/8342-rock-guitar-intro-07
License: https://filmmusic.io/standard-license
Funky Life by WinnieTheMoog
Link: https://filmmusic.io/song/6040-funky-life
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Transcripts
It's July the 25th, and this is episode 64 of Generational Wealth of Cryptocurrency.
Speaker:I'm your host, Macintosh. Today, we're going to be talking about simple math and Bitcoin.
Speaker:Hey, everyone. No one on this podcast is a financial advisor, and all information presented
Speaker:on this podcast is for informational purposes only. Now that we have the legal stuff out of the way,
Speaker:let's jump on in. All right, so today's episode maybe is a little different, but I was thinking,
Speaker:you know, we talk on this podcast a lot about dollar cost average. I've mentioned it on numerous
Speaker:episodes. I've explained thoroughly what that is, and it's an excellent way to do your investing.
Speaker:The reality is that 95% or more of us don't really understand the ups and downs of the
Speaker:cryptocurrency market, and rather than trying to understand that and potentially losing a lot of
Speaker:money, it's probably just best for the majority of people to simply dollar cost average. Determine
Speaker:how much that you're going to buy on a monthly basis, and buy whatever the crypto is that you're
Speaker:going to buy on a weekly or even a daily basis. You can use an app like Strike, for example,
Speaker:for Bitcoin, and you can set up daily purchases, daily recurring purchases so that you don't have
Speaker:to think about it. So what I did though, is I did a little thought exercise. I said, hey,
Speaker:what if my goal is to get one Bitcoin in the next 10 years? Maybe I'm a brand new person. I have no
Speaker:Bitcoin. I have no crypto, and I have listened to enough. I've done my research, and I believe that,
Speaker:say in 10 years, that Bitcoin is going to be worth a million dollars, and I would like to buy Bitcoin,
Speaker:because in 10 years, I'm going to be at retirement age, and that would obviously
Speaker:help a lot towards my retirement. Now, right now, as I'm recording, the price of Bitcoin is $21,935,
Speaker:and oddly enough, I don't have $21,935 sitting around to buy Bitcoin with. So what do I do? I
Speaker:realize that probably over the next 10 years that the price of Bitcoin is going to go up in general.
Speaker:I realize that it's going to have periods of up and down. So if I were to buy a fraction of the
Speaker:Bitcoin every day for the next 10 years, what would that really mean? So let's do some math.
Speaker:Now, I'm going to be honest, math was not my favorite subject in high school or college. In
Speaker:fact, the reality is I actually failed multiple math classes in college. That's something that
Speaker:I struggled with. Now, these were definitely higher math classes. Fortunately, I can deal
Speaker:with the math that we're going to talk about today. But if you don't like math, that's okay.
Speaker:This is quite simple, and anybody with a calculator can do this. So what do we know about Bitcoin? We
Speaker:know that each Bitcoin is composed of 100 million Satoshis. So those are the fractional
Speaker:part of a Bitcoin. And right now, a Satoshi is worth a small fraction of a cent. In fact,
Speaker:if you put it into a converter, one Satoshi is equal to 0.00022 US dollars. So that is far
Speaker:under one cent. Now, I'm going to make this real simple. We got 100 million Sats at a Bitcoin.
Speaker:There are 365 days in a year, we're not going to account for leap years or that kind of well,
Speaker:we're not going to account for leap years. So that means that in 10 years, we got 3650 days.
Speaker:To determine how many Satoshis we need to buy in one day, we divide 100 million by 3650. Your
Speaker:calculator on your computer can handle that. When I ran the calculation about an hour ago,
Speaker:I came out with 27,398 Satoshis per day. If I buy 27,398 Satoshis every day for the next
Speaker:3650 days, I will get 100 million Satoshis or one Bitcoin. Now, if we convert that Sats,
Speaker:the 27,400, well rounded up, 400 Sats to US dollars, currently that's $6.08. And that was
Speaker:about an hour ago. Now, of course, the price will fluctuate back in what, November, late November,
Speaker:I think, or early December, something like that. When Bitcoin was at 69,000, it was roughly three,
Speaker:more than three times as high as it is right now. So that means that 27,398 Sats would cost
Speaker:roughly $18 to buy. So of course, that points out when prices are down, it's better to buy
Speaker:your Sats if possible. However, if you just want a daily goal, there it is. And, you know,
Speaker:right now, there's not a huge Satoshi economy. I do believe that over the next five to 10 years,
Speaker:that that will develop. We're already seeing what I would call a very vibrant ecosystem developing
Speaker:around podcasting, as we've talked about on here with Podcasting 2.0 and Value for Value,
Speaker:where people can stream Sats, where people can boost Sats, where people can earn Sats for
Speaker:producing podcasts. But I think we will see that in other forms of content on the internet as well
Speaker:over the next few years. So even if you can't afford necessarily to buy 27,000 Sats every day,
Speaker:which is currently roughly what, six times 30, 31, that'd be $186. I think I did that correctly.
Speaker:In a month, you can start building a business and basing it on Satoshis rather than dollars.
Speaker:See, at least for me, of course, I have another job, which I've referenced before. I'm
Speaker:in software. I'm in software engineers, what it amounts to. And that job supports my family.
Speaker:Okay. What I do here, what I earn here is an investment. I will save these Sats that I get
Speaker:sent. I earn other Sats that I spend to support other podcasters, certainly. But what I'm earning
Speaker:building this podcast, I will keep. So you certainly have the ability to do that. Now,
Speaker:30,000 Sats a day, roughly, is a lot of Sats, but it's certainly possible. And there are already a
Speaker:number of podcasters, for example, who do that. And who knows what will come around in the next
Speaker:few years. So I would just throw that out. What does that mean? Well, it means that it is possible
Speaker:for anyone to get a Bitcoin if they're willing. To me, $6.08 in today's dollars really isn't that
Speaker:much. I go down to Starbucks and buy a coffee, and if it's not $6, it's almost $6, at least
Speaker:one of their large Frappuccinos, for example. I believe they're actually over $6 now.
Speaker:It's very easy to spend that kind of money in these days. That's less than minimum wage
Speaker:for one hour of work as another way of looking at it. So I hope that helps. It's just a different
Speaker:way of viewing it. I think a lot of people kind of, we get all entrapped and I got to invest and
Speaker:got to buy a bunch at the right times and this, that and the other. It's kind of like the story
Speaker:of the tortoise and the hare, maybe. The slow and steady wins the race. Keep buying those Sats,
Speaker:keep saving those Sats in your wallet, which is hopefully a good hardware wallet, right?
Speaker:And eventually you'll get there. And hopefully before it gets to be a million dollars, maybe
Speaker:that's not 10 years, maybe it's sooner than that, but there you go. So actually,
Speaker:I want to springboard off of that and talk for just a minute about the Fountain app. I know I've
Speaker:been talking about the Fountain app a lot over the last few episodes. People may be wondering if I'm
Speaker:getting some promotional fees or something for that. I don't get anything actually for using
Speaker:the Fountain app. I have no relationship with Fountain, just to be very clear,
Speaker:as with all things on this podcast that I talk about.
Speaker:I listen to a lot of podcasts. That's certainly true. I don't actually know. It varies from week
Speaker:to week, but I typically am listening to a couple of different podcasts at any one time.
Speaker:I spend a lot of time listening to podcasts while I'm driving around, instead of say,
Speaker:listening to music. And when I'm out doing my errands and that kind of thing, typically I will
Speaker:actually have my earbuds in and be listening to a podcast. And a lot of that now is done through
Speaker:Fountain. And I listen to podcasts, not always, but a lot of the podcasts that I listen to,
Speaker:as I've discussed before, are streaming sets to me for listening to them. It's a promotion.
Speaker:And I don't know how long that promotion will go on. It's been going on for a while now. It shows
Speaker:no signs of slowing down. I just wanted to give you an idea. Just by switching to using Fountain,
Speaker:I'm earning, if you want to put it that way, about 5,000 satoshis a week.
Speaker:Now, I make it a point with the satoshis that I do earn on Fountain. I turn around and
Speaker:I support other podcasts, the podcasts that I listen to. But you may use that as a way to
Speaker:springboard into using podcasting 2.0 apps, finding out what all this stuff is about value for value,
Speaker:and that kind of thing. Or, frankly, you could save up sats and you can ship them off of Fountain to
Speaker:a regular wallet. They're stored essentially on a Fountain wallet, so it's not your keys,
Speaker:right? But with the amount of money that typically is kept on, say, a Fountain wallet,
Speaker:it's really not that big a deal. 5,000 sats is only, oh, let's see here, $1.10, right?
Speaker:So it's really not a whole lot of money. I'm not worried about Fountain losing my money, and I just
Speaker:turn right around and use that to support other podcasters. So just throwing that out there as an
Speaker:idea and another reason to use one of our great podcasting 2.0 apps. I've actually determined
Speaker:what I need to do to promotionalize, or whatever you want to call it, generational wealth,
Speaker:crypto currency. I've not done that yet through the Fountain app. So if you listen to us through
Speaker:the Fountain app, you're not going to get streamed sats, unfortunately, and I'm sorry. But hopefully,
Speaker:soon, I will have that set up. All right. That's it. It's going to be a very short
Speaker:episode this week. Just some thoughts I was having about math and Bitcoin.
Speaker:Maybe when you saw the show title, you were thinking, oh, he's going to talk about 21 million
Speaker:Bitcoin. No, not the point. Each Bitcoin is 100 million sats. You can buy sats on a daily basis,
Speaker:and you can use that to become financially free down the road. So there you go.
Speaker:Not a whole lot of news this week. One article, which I will include the link to in the show notes,
Speaker:the South Korean authorities are clamping down trying to get to the bottom of the whole Terra
Speaker:Luna debacle. Apparently, they have now raided the co-founder of Terra Luna. So this is not the main
Speaker:guy that you hear about. His name is Daniel Shin. He's not the main guy that you hear about, talked
Speaker:about with Terra Luna. So that's all I'm going to go into about that. I don't know that stuff is
Speaker:just what I predicted. It's just a never ending drama. It will go on probably for quite a while.
Speaker:It's the news. It's out there, but that's it. All right. The Generation Wealth Cryptocurrency
Speaker:podcast supports podcasting 2.0. It's a value for value podcast. As we've been talking about,
Speaker:we have no sponsors and no advertising and no fountain advertising. I'm not being paid to
Speaker:promote that app. It just happens to be one of the highest quality podcasted 2.0 apps that's out
Speaker:there. You can support the podcast in three ways, time, talent, and treasure. If you want to support
Speaker:the podcast and have some time or talent, I could use some help with some things such as chapters
Speaker:for the podcast, transcripts, and probably a few other things. Treasure is just what it sounds
Speaker:like. If you find the content valuable, you can support the podcast by streaming stats from a
Speaker:podcast 2.0 app, or you can send support via PayPal to macintosh@genwealthcrypto.com.
Speaker:You can get a podcasting 2.0 app for the optimal listening experience at newpodcastapps.com. And
Speaker:if you like the content, I would love it if you would tell your friends about the Generational
Speaker:Wealth Cryptocurrency podcast. Thanks for being here this week. I hope this has been helpful.
Speaker:I would love to hear from you. I'm on Twitter at MacintoshFintech, and you can reach me by email
Speaker:at macintosh@genwealthcrypto.com. Now go out and make it a great week.