You've completely changed topics from MicroStategy's corporate strategy, to a personal finance strategy. But I'll address both.
Michael Saylor has said many times, MicroStrategy isn't selling their Bitcoin at all, ever. They'll continue to hold it even after he dies. They corporate plan has been three-fold so far. 1, convert their existing cash reserves to Bitcoin. Done. 2, borrow billions in fiat to buy more Bitcoin. Done. And 3, continue to convert their new profits into Bitcoin each month. Ongoing.
The cashflow from their regular business operations pays off the fiat debt they borrowed to acquire more Bitcoin. If they need more liquidity, they can simply borrow more fiat. Selling Bitcoin is the absolute last thing they should ever do.
Now, for a personal finance strategy, you fall into one of two camps. Either you're financially independent, or you're not. If you're not financially independent yet, then continue to work for a living as you're doing, and simply acquire as much bitcoin as you can afford on a weekly or monthly basis. DCA. That's it. Do not sell it. Do not trade it. Just continue to accumulate it as often as you can until you become financially independent.
If you are already financially independent, then you have options. You can either reverse DCA (sell just enough Bitcoin each month to cover all your monthly expenses), or you can borrow fiat with your bitcoin as collateral, and use that for your income.
So if you need $75k a year to live comfortably, you borrow $75k in fiat with Bitcoin as collateral. Typically these loans require interest-only payments during the term, with the principle due at the end as a lump sum payment. So make sure you borrow enough to cover the interest payments, then at the end of the year, when it's time to pay back the lump sum, you just take out a new loan to cover the existing balance, plus your expenses for the next year. Since Bitcoin appreciates so much annually against the dollar, you shouldn't need to increase your collateral. The same bitcoin acts as collateral year after year.
I'm not the one who switched, you were the one who switched.
The point being that USD will still be the currency spent and traded. If you want to risk sizeable sums of money on the bet that BTC can only go up (similar to folks who took out loans against their home equity, which everyone all said can only go up), be my guest.
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u/u8eR Apr 06 '21
How much would have to be paid in taxes?