What is Generational Wealth?
Oftentimes, this is called legacy wealth or family wealth. It is the representation of wealth passed down from one generation to the next, of a considerable amount of assets both tangible and intangible, continuously in the same family. Generational wealth is inherited wealth. For the simplicity of definitions, tangible assets are physical assets, things an individual can touch such as cash, real estate, etc. While intangible assets are the opposite and include trademark data, goodwill built upon a business over many years, patents, etc. For the purposes of this article, bitcoin falls under the definition of both an intangible and tangible asset.
The bitcoin an individual can accumulate over their lifetime is considered to be intangible and tangible because bitcoin cannot be physically held or touched like gold, and bitcoin cannot be dumped into a suitcase and carried. However, the cold-wallet(s) where bitcoin is stored is tangible and can be held, moved, and carried. By contrast, gold is a tangible asset because it can be held, touched, and carried around. However, gold is outdated and quite heavy, if an individual needed to move it to a safer location; the logistics around that simple move would require extensive planning and preparation. Cold wallets and bitcoin require significantly far less yet carry equal amount of stressors on the owner.
Over the last 12 months; from January 2020 until January 2021, gold and bitcoin have gone head to head with their pricing on data charts. However, in October 2021 we see that bitcoin pulls ahead and quite significantly. The change in percentage indicates that bitcoin rose 294.3% while gold rose 23.4% I will attribute this to the slow, mainstream adoption of bitcoin, network, and ease of use in countries adopting it as legal tender (El Salvador in September 2021).
How does this affect bitcoin for generational wealth?
Simply put: It makes bitcoin stronger and more valuable. The scarcity associated with bitcoin, 21 Million in supply, helps to drive that value. As of this writing, 99.9% of people would have $29.94 worth of bitcoins per personbitcoinsperperson.com. Continually, bitcoin will surpass expectations with fewer and fewer pullbacks in price and as time goes on the price (or value if you will) shall continue to stabilize. With the stabilization of value, bitcoin will become a stronger currency, enabling individuals to leverage houses and cars (gain mortgages) against their bitcoin collateral and use bitcoin for the purchase of everyday items.
The generational wealth can only be incurred once the price of bitcoin stabilizes, increases, and globally individuals understand it is a true treasure trove of value. It is important to realize that as price stabilizes, the more valuable bitcoin becomes. By stacking sats daily, DCA, and pushing all-in on occasion; individuals can optimize their bitcoin exposure.
How to set up my bitcoin cold wallet for generational wealth?
While many people tend to seek advice from financial planners, create trusts, living wills, or leave notes for their loved ones it is also pertinent to educate those you will leave your entire sum of bitcoin with after your passing. Now, while this may seem early for some, it is never too early to plan for your death. As morbid as this sounds, in all reality you can’t take anything with you when your eyes close for the last time; the things that are left over are the people you surrounded yourself with, their grief, and your assets. Those people will deal with their grief, but your assets must be protected and people educated on how to access and use your sats which are in cold storage.
First, start by educating those you intend to leave your bitcoin to. This can be with involving them in stacking sats, setting up cold storage, showing them how to create their personal seed phrases, how to unlock their cold wallet, how to use a hot wallet, and how to transfer funds from hot to cold wallets and vice versa.
Second, would be to have daily conversations about the importance of bitcoin, the effect it has on the world, as well as their lives. By ingraining these aspects and usage of bitcoin, you are sure to protect your people with knowledge and use of knowledge; as well as maintain your own peace of mind.
Third, have your people begin to stack their own sats directly to cold storage. . It is an important thing to do because only then will your heirs understand the importance/value of the bitcoin themselves. . Once their perspective changes from fiat to sats; their whole knowledge base of assigning value to material things will change.
Fourth, an important last step is to remember that you must always leave your wishes in writing and not just in just one place. It is imperative that all your loved ones/ heirs understand how to access, use, and store the bitcoin they are being gifted as your last wish. . Of course, each individual has their own specific needs and so this too must be taken into account (i.e. for college, cars, healthcare for children/elderly parents, etc.).
Overall, this generational wealth that you create by stacking sats daily will help to maintain the Bitcoin network and enable your future family generations greater financial freedom. Don’t let it slip past your fingers without thinking of them; after all, you can’t take it with you and if it’s not able to be allocated to individual(s) of your choice, all your hard work is for not.
Written by:@bitcoinbabybee