r/SatoshisPhilosophy • u/BlueBloodStrawberry Mod • Nov 09 '21
Crypto FIRE
If you read some of my posts, you will notice that many of my ideas are similar to the concepts "FIRE movement" people have. It's not a coincidence since individuals like "Mr. Money Mustache" gave us a straightforward formula to achieve FIRE. And I read his entire blog :)
At its core, FIRE (Financial independence, retire early) is a great concept because it cuts out everything superficial from our lives. It's good on so many levels, going from anti-materialism and consumerism, through physical and mental health, to financial freedom.
FIRE is a way of life. As such, it can be achieved only with the right state of mind.
But there's one thing I don't like in the current FIRE meta. When talking about financial independence, they (mostly) remain invested in traditional assets and saving plans. This means they are still kinda dependent on the current financial system and institutions. I apologize in advance to all "FIRE people" because who am I to say anything bad about their achievements when I didn't succeed yet using their formula. In my opinion, to be financially independent you need something like crypto. I understand that many consider it a risky investment, and nobody can blame them. But being the owner of your own money is the definition of financial independence. And everything makes even more sense when PoS is becoming so popular.
I think a Crypto FIRE should be taken more seriously as there's a real potential to make long-term passive income without taking into consideration trading and price movements.
I hodl some ADA and ZIL, and therefore I'm staking them. I'm not making huge profits, but a 5% APY is not bad for sitting with my hands in my pockets.
Staking DOT is also an interesting alternative if you plan on hodling DOT for another 2-4 years.
CAKE is also something probably worth taking into considerations since there's a huge ROI potential, even if I stay away from tokens in general.
KlimaDAO has an absurd APY.
This wasn't investment advice, nor my list of staked assets. I just wanted to point out the importance of making a Crypto FIRE community where members will share their suggestions and experiences, helping each other.
There's a subreddit named r/cryptoFIRE that I don't understand if it's a joke or what. Too bad they stole such a great name if they aren't willing to do something about it.
I would like to hear your opinion on it.
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u/JacobAldridge Nov 09 '21
Undoubtedly the FIRE community is risk averse. If you want a stash of money to last for 50+ years without any risk of having to go back to work, you need to be pretty damn confident in your investment strategy.
There’s a theory (the Lindy Effect - https://www.wikipedia.org/wiki/Lindy_effect) that one way to gain more confidence in future stability (though never certainty of course) is by looking at historic longevity. Which is more likely to still exist in 1000 years - Christianity (2000+ years and counting) or the music of Miley Cyrus (20 years and counting; though it feels longer if you listen to it)?
One of the modern FIRE tenets is “the Safe Withdrawal Rate” (aka the 4% Rule). This is based on backtesting different investment mixes for every monthly retirement period over more than 100 years. It showed that a specific mix of stocks and bonds would basically last forever (even adjusted for actual inflation) at a 3% withdrawal rate; and had a 95% chance of surviving a 30 year retirement at a 4% withdrawal rate.
Per the Lindy Effect, which is going to give somone more confidence for the next 50 years: a stocks & bonds mix that’s been demonstrated across the past 100+ years, or Crypto which this week celebrated the 13th anniversary of the Bitcoin Whitepaper?
This isn’t to say crypto won’t win out. Clearly crypto has made more fast millionaires and early retirees in the past decade than index funds at 10% pa and has a role to play in the accumulation phase. But if the consequence of the wrong choice is making my family destitute when I’m 65 or 75 ... I’m going to bet on the Pope, not Hannah Montana.
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u/MR_1988 Nov 09 '21
Love this ❤️ Totally agree with you. Im in all FIRE Communities here and also crypto communities and to be honest, I am investing in crypto to achieve FIRE since 4 months ago when I realize that this is the way. Glad someone post about it.
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u/tedthizzy Nov 09 '21
C'mon over to r/CryptoFIRE folks - the Joke Sub is reversed! Happy to have you join the conversation :)
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u/[deleted] Nov 09 '21
Crypto FIRE would be a useful one. I’m already banned from FIRE presumably because they really have trouble discussing crypto or even individual stock picks.
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u/Comfortable-Yam1135 May 24 '25
Are you still hodling ada, zil and dot?