Stay humble and protect your sats
Good morning, stay humble and stack sats
— Matt Odell
Welcome to the latest issue of the Bitcoin For Families newsletter. This issue focuses on the need to ensure that you keep your sats throughout the whole process of hyperbitcoinization.
Stay humble and protect your sats
Matt Odell famously repeats all the time the same statement: “Good morning, stay humble and stack sats”.
It’s an extremely versatile statement. You want to stack sats, as many as you can. But you need to be smart about it. That’s the Stay humble part. You want to make sure that you keep those sats.
At some point, you need to invest energy, time and money into protecting your current savings in Bitcoin before you expand it further.
When is the right time to do this? It really is a personal decision. Maybe it’s 21 million satoshi. Only 100 million people can have this amount of Bitcoin. It may sound like a lot of people but it is only 1.25% of the world’s population.
That’s right. 0.21 BTC gets you into the top 1% of the world in terms of Bitcoin holdings.
Whatever amount you decide is right for yourself, make sure to read the recommendations below.
Cash flow positive
You need to make sure that you stay cash flow positive. You don’t want to be forced to sell your Bitcoin prematurely because of your life style:
- Make a budget with a tool like [You Need a Budget](https://www.ynab.com. This is the one I use but really, whatever works for you is the right tool
- Think of ways to increase your income.
- Think of ways to lower your monthly expenses.
You need to spend time and energy putting your fiat finances in order so that you can live without touching your Bitcoin savings until you decide it’s time to do so.
Storage
The next item on the list is storage: Not your keys. Not your coins. You need to have a sound storage solution that keeps your Bitcoin savings safe from thieves and most importantly from yourself.
Most people who lost their Bitcoin didn’t lose them to a cunning thief. They lost them because they hid their seed words too well and later on they couldn’t remember where they put them.
There is such a thing as too much security. For instance, I don’t think you need 24 words. 12 words is enough from a security perspective.
If you want to see what a reasonable setup looks like, check this past issue on how I setup things for my parents.
The one thing I’ve changed for them since I published this article is that there is a copy of the 12 seed words stored in a different house. Without the passphrase, this other copy is harmless and if a thief steals the seed plate and the Coldcard at my parents house, they can still access the funds with the extra copy of the 12 words kept at this other location.
Inheritance planning
Inheritance planning is a special case of what I just discussed.
What’s the point of creating generational wealth if your family can’t access it when you get run over by a bus?
You need to establish a bulletproof process (pun intended) to transfer access to your Bitcoin savings to your loved ones in the case that something happens to you or to both you and your spouse.
There are multiple ways to go about this:
- Nunchuk has non-custodial inheritance service (see here).
- Distribute different parts of your seed words to different family members. No one has full access but all can get together to gain access if something happens to you.
- Another approach with 12 words seed and a passphrase: you could share your passphrase with your loved ones now and write down the 12 words into your testament, which no one will see until you pass away.
Privacy
The process of hyperbitcoinization won’t be smooth. Governments are not going to give up the tremendous power they have now without a fight and therefore privacy could be very important.
You may not want others (either a business or the government) to know that you have bought Bitcoin, just in case they become hostile against it.
In that case, you want to buy Bitcoin peer-to-peer, so that you don’t need to provide personal information to anyone.
BTC Sessions has a fantastic tutorial on how to use Robosats, a peer-to-peer Bitcoin exchange: here is the YouTube link to the tutorial.
Notable notes
Recommendations
BTC Sessions
Ben is the host of the BTC Sessions YouTube channel. His tutorials are hands down the best video tutorials you will find about Bitcoin.
You can follow him here.
Bitcoin Breakdown
Bitcoin Breakdown gives you the TLDR summaries of the biggest events in Bitcoin. A fantastic way to stay up to date with the industry.
Check it out here.
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See you again next week! — Alejandro
This newsletter is for educational purposes. It does not represent financial advice. Do your own research before buying Bitcoin.