The New Year: The New Way to Save Money

Bitcoin is a *relatively* new, and better, way to save money.

Happy New Year BITROCKS subscribers and new readers!

I spent the holidays all cozied up at home.

Every year, my family has a tradition where “Santa” writes everyone letters and we read them aloud and have a laugh or two.

This is the second year where “Santa” mentioned my obsession with Bitcoin.

In fact, in my letter from 2023, “Santa” congratulated me on my gains (I put the majority of my net worth in Bitcoin late 2022), but advised me that I should consider some diversification in my investments.

Looking back, I understood why “Santa” said those things. A few weeks before Christmas Day in 2023, I rolled-over a Vanguard 401k to a Bitcoin IRA (which is hilarious given that Vanguard doesn’t let their clients invest in the Bitcoin ETFs at the time of writing of this article). I didn’t invest in traditional assets like the S&P outside of my 401k. I was unemployed and about to go into 2024 job hunting so there was some uncertainty about my financial future. If I needed to, I was willing to liquidate some Bitcoin for living expenses (just like you would spend regular money to rent, eat, and life your life).

Why was I willing to hold on to my bitcoin? Because I already understood that Bitcoin is the best long-term savings technology that humans can use to preserve their purchasing power without getting debased by government money printing and debt issuance.

When you change the base currency in which you save in, bitcoin wins over fiat currencies like the US dollar any day of the week.

Saving in bitcoin has outperformed all of the traditional investing strategies since BTC had an exchange rate with the USD.

The S&P 500 had its best year in a long time yet BTC still outperformed the traditional passive investing that your typical financial advisor would recommend.

This raises a big question: How the **** have I been outperforming financial advisors for the last two years???

2024 was a fantastic year for bitcoin. Spot ETFs were approved almost a year ago, a major US presidential candidate spoke at a bitcoin conference last summer, and now US states are introducing legislation for a strategic bitcoin reserve, and rumor has it that countries are thinking about buying bitcoin and adding it to their reserves, similar to gold.

Bitcoin adoption is happening at an accelerating pace, and most people still think bitcoin is only used by criminals, terrorists, and drug dealers¹.

It’s 2025, and bitcoin is much more than that; it’s the new global currency that is taking the world over by storm. The biggest use case for bitcoin: simply holding and protecting your money from debasement.

Bitcoin IS the new way to save money, and if you aren’t wearing the life vest, you will sink on the fiat ship like the Titanic.

My message is simple: Study bitcoin and get an allocation in 2025.

Here are some of the topics I want to discuss this year, for both newcomers to Bitcoin and veterans:

-Dollar Cost Averaging vs Lump Sum Strategy

-Bitcoin’s cyclical cycles and what to expect during the post-halving year²

-Bitcoin stacking goals

-Best Bitcoin on-ramps (exchanges) for US residents

-Taking self-custody of your coins

-Bitcoin maximalism³

-Bitcoin equities/proxies and altcoins and whether you should “diversify”

-Integrating Bitcoin with your personal finances

-Preparing and hedging for a Bitcoin bear market⁴

Feel free to reach out and send me any questions you might have about Bitcoin and I’ll write responses, and maybe I can start a running Q&A series too!

Lastly, I want to wish Bitcoin a happy 16th birthday! The genesis block was mined January 3rd, 2009. Bitcoin is a teenager now! The Lindy effect is very much in play.

Thanks, and I’m looking forward to writing more on here to talk everything Bitcoin!

1. This is technically true, as anyone can use bitcoin due to its permission-less nature. I recommend reading Resistance Money which offers an alternative perspective on why bitcoin is better money, especially in a world with authoritarianism, censorship, inflation, and financial exclusion.

2. Bitcoin halvings happen every 210,000 blocks, approximately every four years, which cuts the mining reward in half (the issuance of new bitcoins). The last halving occurred April 19th, 2024, so 2025 is the post-halving year.

3. Bitcoin maximimalism is the philosophy that Bitcoin is the only cryptocurrency asset you should own, and that all other cryptocurrencies are noise.

4. A “bear market” refers to a period of declining asset prices. Because bitcoin is new money that can be traded on exchanges 24/7, bitcoin has gone through multiple bear markets in its 16 years of existence, historically which have happened during US midterm years (2014, 2018 and 2022).