0 sats \ 2 replies \ @tomlaies 10 Feb \ parent \ on: How can one create passive income through one's bitcoin (profits)? Personal_Finance
Just own shares and relax. (Edit: i a bitcoin context this would even apply to EVERYBODY. Everything or all of the world GDP divided by 21 million.)
We can argue about the first point but you're unambiguously wrong on this one. The trinity study is one of the most fundamental works in the science of economics and talks about 4%. For economists even 4% is highly controversial. Your 12,7% are so far out of the question.
Nah. As I said, we can discuss what "passive" means. Fun little discussion. But I won't let the 1% monthly return slip. That's actually dangerous advice to people - especially if someone was to actually plan to retire on this math.
If you talk about the 4% yearly income, based on your investment as net profit, AND in NPV (Net Present Value)...maybe I can agree partially...
But if you talk just simple as 4% income... => you're in loss, because of inflation (which is bigger than 4$)...I talk about the REAL inflation, not about the FED "math" ;)
I will tell you an example: here, in my city (it is almost the most expensive city in Romania) you can buy a block house of ~70 square meter for around 100k euro, and you can rent it for ~700 euro / month. This is also much more than 4% yearly income...but if we take in consideration the additional costs, a part of this income will evaporate (issues, government taxes, real estate agent, etc)...