Outstanding investor and entrepreneur Fred Krueger, creator of The Huge Bitcoin Guide and fanatic of Bitcoin (BTC), Solana (SOL) and AI, explains a really fascinating sample of utilizing BTC as a yield-generating asset or discovering one other “protected haven.” It appears like promoting BTC in some conditions may be smarter than searching for options.
It is higher to promote your BTC step-by-step, Fred Krueger says
Between progressively promoting BTC for earnings and investing within the yield-producing asset “on the facet,” the primary technique appears extra prudent to Bitcoiner Fred Krueger PhD, seasoned investor and entrepreneur with 10 exits. Dr. Krueger shared a 10-year mannequin together with his 163,400 followers on X.
Do you have to promote your Bitcoin for earnings or do you have to “get an earnings producing asset” on the facet?
I might argue it’s best to 100% promote your Bitcoin. This is the evaluation.
Let’s begin with a 2MM USD portfolio, and assume you want 100K per yr for dwelling bills. This is a… pic.twitter.com/X5Dt9L9ddr
— Fred Krueger (@dotkrueger) Might 30, 2025
To show the hypothetical execs and cons of the 2 devices, Dr. Krueger reconstructs the dynamics of a $2 million portfolio in 10 years. The primary technique assumes that Bitcoin (BTC) surges with 40% CAGR, the investor solely takes $100,000 per yr to pay the payments, and pays 20% in earnings taxes.
After 10 years, the technique (because of cautious promoting and secure strong CAGR for Bitcoin) leaves the investor with over $49.7 million in money.
The second technique provides the investor to spend 80% of the portfolio on some conventional asset that’s thought of to be good at yield producing:
Now assume as a substitute you spent 1.59MM of the 2MM on a excessive yielding asset like Texas actual property at 10% (should you may even discover one).
After that, the consumer can nonetheless make investments $410,000 in Bitcoin (BTC). Ten years of following the second technique leaves the traders with $11 million, Fred Krueger opines.
Higher options? MicroStrategy, lending, cycles
The commentators to his thread, basically, agreed with the advantages of the technique. In the meantime, they added a lot of caveats to judge it.
First, each time the primary investor takes $100,000, it’s equal to numerous quantities of BTC resulting from its cyclic worth dynamics. Nobody may be certain when precisely it’s the most worthwhile to promote.
Additionally, some followers spotlight that probably the most worthwhile technique would possibly indicate borrowing USD in opposition to Bitcoin (BTC). The borrower would not must pay capital acquire tax and at all times retains their BTC allocation protected as a substitute of solely paying 12% as curiosity.
Shares of Technique (MSTR) and MSTY, an Choice Earnings Technique ETF based mostly on the MSTR efficiency, have been additionally numbered amid potential options.
Bitcoin (BTC), the most important cryptocurrency, is down by 1.5% within the final 24 hours. Bitcoin (BTC) is altering fingers at $104.500 as of press time.
