Stephan & Gilded Pleb, a developer who created StackMath, a financial calculator for Bitcoin, discuss Gilded's personal journey with Bitcoin, its potential impact on homelessness, and the importance of understanding financial models for retirement planning.

Gilded explains how traditional financial calculators often fail to account for the volatility of Bitcoin and introduces the Monte Carlo simulation as a more effective tool for predicting financial outcomes. The conversation also touches on inflation, retirement strategies, and the significance of model selection in financial planning.

They also explore the emerging role of Bitcoin treasury companies and how they can provide access to fiat leverage, while also emphasizing the importance of self-custody. The discussion shifts to risk management strategies, including the allocation of portfolios between Bitcoin and high-risk investments.

Takeaways

🔸Gilded Pleb shares his personal journey with Bitcoin and homelessness.

🔸Bitcoin can alleviate some of the pressures causing homelessness.

🔸Traditional financial calculators often fail to account for Bitcoin's volatility.

🔸Monte Carlo simulations provide a better model for financial predictions.

🔸The 4% rule is a heuristic for retirement planning.

🔸Inflation rates can significantly impact financial planning.

🔸StackMath allows users to run their own financial simulations.

🔸Understanding the range of Bitcoin's price is crucial for planning.

🔸DCA (Dollar-Cost Averaging) can be a reasonable strategy for retirement.

🔸Nation states could be the next major buyers of Bitcoin. Debt is complicated, especially when collateralizing Bitcoin.

🔸Being in debt can feel antithetical to the Bitcoin ethos.

🔸Bitcoin allows for personal sovereignty and mobility.

🔸Many Bitcoin treasury companies operate on fiat IOUs.

🔸The fundamental nature of Bitcoin offers unique advantages.

🔸A 90-10 portfolio strategy can balance risk and security.

🔸Access to fiat leverage can enhance Bitcoin investments.

🔸Volatility in Bitcoin may decrease as it matures.

🔸Investment strategies should consider individual risk tolerance.

🔸Exploration and education are key in navigating Bitcoin investments.

Timestamps:

(00:00) - Intro

(01:00) - Who is Gilded Pleb?; Navigating homelessness & finding Bitcoin

(05:34) - What is StackMath?; The importance of Monte Carlo simulation

(13:16) - Inflation & financial planning

(17:11) - What are the key strategies for retiring on Bitcoin?

(21:32) - Sponsors

(24:48) - Model selection & Predictions for Bitcoin

(28:20) - Should you borrow against your Bitcoin stack?

(33:46) - The role of Bitcoin Treasury Companies

(36:23) - How can one manage risks in Bitcoin investments?

(38:11) - Sponsors

(39:15) - Navigating Bitcoin volatility with Bitcoin Treasury Companies

(46:44) - Can Bitcoin Treasury Companies be modelled?

(52:53) - Closing thoughts

Links:

Sponsors:

Stephan Livera links:

Can you retire on bitcoin? with Gilded Pleb | SLP652

Stephan Livera Podcast