From Gold to Bitcoin: A Wealth Strategy Based on Value Cycles
Inspired by Mike Maloney’s classic video “What Is A Wealth Cycle? The Difference Between Price & Value”, I’d like to share a modern interpretation: how to apply this asset rotation strategy, but using Bitcoin instead of gold.
🧠 What Is a Wealth Cycle?
Maloney shows how different asset classes (stocks, real estate, precious metals) rotate over time between being overvalued or undervalued.
The trick is to measure the relative value between assets, not their price in dollars. That way, you can leap from one asset to another when misaligned, maximizing real wealth accumulation.
💡 Original Strategy: Gold – Real Estate
A historical example from Mike:
- In 1920, a house cost 150 ounces of gold.
- In 1932, the same house dropped to 60 ounces of gold.
- In 1980, it was just 70 ounces again thanks to the gold rally.
- In 2011, the house returned to being worth 150 ounces.
📌 Those who sold their house when it was "expensive" in gold and bought gold could later buy several houses in the future with the same ounces.
₿ Updated Strategy: Bitcoin – Real Estate
The thesis is simple: replace gold with Bitcoin, an even scarcer, more portable, and censorship-resistant asset.
🔁 Proposed Strategy:
- Accumulate BTC when its value in real estate terms is low (BTC undervalued).
- Wait for the Bitcoin bull cycle.
- Sell BTC to buy property when real estate is cheap in BTC terms.
- Repeat the cycle.
📊 Current Cycle Chart: Houses Priced in BTC
📷 Source: btcframe.com
This tool shows how many bitcoins it takes to buy an average home, and how that has evolved over time:
| Time Ago | Price in BTC | Variation |
|---|---|---|
| Today | ₿3.71 | ↘ 2.39% (daily) |
| 7 days | ₿3.95 | 🔻 -6.43% |
| 30 days | ₿4.31 | 🔻 -16.24% |
| 1 year | ₿6.05 | 🔻 -60.2% |
| 3 years | ₿14.41 | 🔻 -288.3% |
| 5 years | ₿34.29 | 🔻 -823.5% |
| 10 years | ₿1,222.36 | 🔻 -32,800% |
📌 Conclusion: today, a house costs only ₿3.71. It used to cost 14, 34, or over a thousand.
When measured in BTC, houses are at their cheapest point in the decade. The cycle is alive.
🧭 When to Sell Without Letting Greed Win
A great question my mother asked me:
"When should I sell? Without letting greed take over?"
✳️ Realistic Answer:
- ✅ Set clear rules: “If a house drops to 1 BTC or less, I’ll buy (sell BTC).”
- ✅ Don’t aim for the exact top. Look for a good moment, not a perfect one.
- ✅ Consider selling in stages (10%, 20%, etc.).
- ✅ Always measure in BTC, not in dollars.
🎯 The important thing is not to guess the peak, but to act with purpose and a plan.
📌 Strategy Key Points
- 🧮 Don’t measure in dollars, measure in BTC.
- 📉 Look for when real estate is cheap in BTC terms.
- 🧭 Make decisions based on relative value, not market hype.
- 🔁 Make few moves in your lifetime, but calculate them wisely.
🛑 Disclaimer:
This post is for educational and strategic reflection purposes only. It does not constitute financial advice. The price projections used are hypothetical and do not guarantee results. I cannot predict the future, and any investment decision should be based on your own analysis and risk tolerance.
This strategy is not a promise of instant wealth, but rather a compass to understand real value in a fiat-inflated world.Maloney’s knowledge applied to the 21st century: digital gold, cycles, and financial freedom.
Who else is measuring their wealth in satoshis instead of dollars?