Here's the thing about personal sovereignty: It's not just some fancy concept for philosophy majors.
Nah, it's about having control over your life, your choices, and yeah – your money. And let me tell you, the cornerstone of all that, in my option?
It's financial independence.
But here's the kicker – for us average Joes and Janes, the traditional financial system is royally screwed.
I mean, seriously. Have you seen inflation lately? It's like a bloody monster eating up our savings faster than we can squirrel them away. And don't even get me started on currency devaluation. It's a shitshow out there, folks.
So, what's a regular person supposed to do?
Well, after years of fumbling around like a right muppet, trying to figure out what to invest in and how, I've come to a pretty simple conclusion:
Bitcoin is our way out. Full stop.
I could end my blog post right here but I think a lot of people, like me before, need some more convincing.
Again, everything here and on my site is not financial advice – it’s literally just my opinion, I am not a financial advisor or anything, I’m a structural engineer by background, just a regular person who wants more freedom in their life.
I have also cheekily coined my own FIRE term – SovFIRE (Sovereign FIRE) 😄
If you want to learn more about how I'm specifically using Bitcoin to work towards financial independence, check out my detailed post on Achieving Financial Independence with Bitcoin.
Not Another Crypto Bro – Wat are you Shilling now Adam?
Now, I can almost hear some of you groaning. "Oh great, another crypto bro." But hang on a sec. This isn't about getting rich quick or jumping on some hype train.
I’m not shilling you anything, in fact only expressing my opinion that I want to buy more bitcoin before all the governments and big corporations do.
This is about survival, mate. It's about not getting completely shafted by a system that's stacked against us.
In this post, I'm gonna take you on a bit of a journey. From yours truly being a staunch advocate of traditional investing (yeah, I was that guy), to becoming a believer in the power of cryptocurrency – particularly Bitcoin.
I'll break down why I reckon crypto is our best shot at beating what I call the "11% hurdle rate" – the return we need just to keep our heads above water in this bonkers economy.
Fair warning: I'm not some financial wizard or crypto millionaire. I'm just a regular bloke, an expat engineer who's been trying to figure this stuff out. And let me tell you, it's been a wild ride.
- I've made mistakes? Oh yeah.
- Lost money? You bet.
- Had more than a few "WTF am I doing?" moments? Absolutely.
But I've also learned a ton, and I'm starting to see a path forward that actually makes sense.
So whether you're crypto-curious, a hardened skeptic, or somewhere in the middle, come along for the ride. Let's dive into why cryptocurrency might just be the key to reclaiming our financial sovereignty in a world gone mad.
Understanding Personal Sovereignty in the Modern World
Alright, let's get into the nitty-gritty of what I think personal sovereignty actually means in today's world.
Spoiler alert: it's not about wearing a crown and ruling your own little kingdom (though that does sound pretty sweet, doesn't it?).
What the Hell is Personal Sovereignty Anyway?
Personal sovereignty is all about having control over your own life.
It's about making your own decisions, setting your own path, and not being at the mercy of others – whether that's governments, corporations, or your annoying neighbor who thinks he knows everything.
But here's the rub: in today's world, true personal sovereignty is about as rare as a unicorn riding a bicycle.
Why? Because the systems we live in – especially the financial ones – are designed to keep us dependent and, frankly, a bit clueless and ultimately to lead you to apathy.
Fuck apathy, I did nothing for too long, that’s why I am supporting taking action to try and better our lives.
The Financial System: A Rigged Game
Let's talk about the elephant in the room: our current financial system is about as fair as a rigged carnival game.
You know, the one where you try to throw a ball into a basket, but the basket's smaller than the ball? Yeah, that's basically our economy.
Here's how it screws us over:
- Inflation: It's like a silent thief, sneaking into your wallet and nicking your cash bit by bit. That $100 in your account? It's worth less every year.
- Currency Devaluation: Remember when a dollar actually meant something? Pepperidge Farm remembers. Now it's worth less than a slap in the face with a wet fish.
- Debt-Based Economy: We're all hamsters on a wheel, running faster and faster just to stay in place. And the cheese at the end of the maze? It's probably moldy.
Why Financial Independence is Key
Now, you might be thinking, "Adam, mate, what's all this got to do with personal sovereignty?" Well, I'll tell you:
In today's world, financial independence is the cornerstone of personal sovereignty.
Think about it. If you're constantly worrying about money, if you're one paycheck away from disaster, how free are you really? Can you truly make decisions based on what you want, or are you always constrained by financial fears?
That's why I bang on about financial independence so much. It's not about being rich – it's about having the freedom to live life on your own terms.
The Middle East Eye-Opener
For me, it wasn’t untill I moved to the Middle East that I was able to earn enough money that I had spare money to invest. As an engineer in the Western world, in my opinion, the wages are OK but you won’t have much left over at the end of the month.
I am not one of those lucky software engineers or coders, I am talking as a civil structural engineer – the world doesn’t pay the big bucks to build concrete and steel structures.
In hindsight I should have learn coding not concrete but I digress.
Before I had the ability to invest I just didn;t pay attention to the economy or my fiannces as I assumed I just needed to get a career job and work 40+ years and everything would be OK, then I found out about the FIRE movement and found out there is the potential I can step out of that nightmare – I was hooked.
I had been an expat for 8 years already but it wasn’t until I moved to the Middle East that I was finally able to save enough money to put into investments and make financial independence an option.
Now I see the world differently and I see that I have a choice for my future and I choose a future where I have more options, more freedom – at least that’s where I am trying to get to.
So, What's the Solution?
Here's where it gets interesting.
For us average folks, I genuinely believe that Bitcoin and cryptocurrency offer a path to personal sovereignty that we've never had before.
Why? Because for the first time in… well, ever, we have access to a financial system that's:
- Not controlled by any government or corporation
- Resistant to inflation and devaluation
- Accessible to anyone with an internet connection
Is it perfect? Hell no. Is it risky? Well, I go back and forth on this, after I have watched a video from Michael Saylor or Raol Pal I think I need more BTC and I am not bullish enough, other days I wonder if the risk is too high.
But in a world where the traditional financial system is stacked against us, I think that it might just be our best shot at achieving true personal sovereignty.
In the next section, we'll dive into why traditional investing might not be enough to get us there. Spoiler alert: it involves something I call the "12% hurdle rate". Intrigued? Stick around, it's about to get interesting.
Now, I am no sprinter or hurdler, quite unfit actually so I particular hate this hurdle rate.
The 12% Hurdle: Why Traditional Investing Falls Short
Alright, let's talk about why your dad's investment advice might be as outdated as his disco moves. It all comes down to something I call the "12% hurdle rate".
The 12% Hurdle Rate: Your Financial High Jump
The 12% hurdle rate is the return you need on your investments just to stay afloat in this bonkers economy. Here's the quick breakdown:
- 3-4% for actual inflation (being optimistic)
- 8% for currency devaluation (yeah, it's that bad)
Add it up, and you've got a 12% hurdle to clear just to maintain your purchasing power. Scary stuff, right? In reality inflation is much higher than even 4% or whatever basket of good the government cherry picks this time to try and make it as low as possible.
Traditional Investing: The Slow Boat to Nowhere
Now, let's look at traditional investments:
- Stocks: Historically return about 7% per year. Not enough.
- Bonds: Currently yielding 2-3%? That's a joke, mate.
- Real Estate: Maybe 5-6% returns, if you're lucky.
The Silent Killers: Inflation and Currency Debasement
Even if you're making what seems like a decent return, inflation and currency debasement are eating away at your gains like termites in a wooden house.
Inflation is a stealthy ninja, silently robbing you of your purchasing power. And currency debasement? It's like the government's playing Monopoly with our money, just printing more whenever they feel like it.
The Hard Truth
The traditional financial system is rigged against us average Joes and Janes. Those "safe" options we're told to invest in? Anything denominated in fiat currencies and not in a hard asset like bitcoin about as safe as a paper boat in a hurricane when you consider the 12% hurdle we need to clear.
Want to dive deeper into this topic? Check out my full blog post on Escaping the Rat Race: Investing in Your Future with Alternative Assets. It goes into more detail about the 12% hurdle and explores some alternative investment strategies that might just be our ticket out of this financial mess.
In the next section, we'll get into my personal journey into the world of cryptocurrency, and why I believe it might be the solution we're all looking for. Stick around, it's about to get interesting.
My Cryptocurrency Journey: From Skeptic to Believer
Alright, strap in folks. It's time for a little story about how yours truly went from a crypto skeptic to a full-blown Bitcoin evangelist. It's been one hell of a ride, so let's dive in.
The Old Adam: Mr. Traditional Finance
Picture this: It's 2019, and I'm sitting pretty with my "responsible" investment strategy.
- Stocks and bonds? Check.
- Thinking my house was my golden ticket? You bet.
- Religiously following mainstream financial advice? Guilty as charged.
I was that guy who'd roll his eyes at any mention of Bitcoin. "It's just magic internet money," I'd scoff. Oh, how wrong I was.
The Wake-Up Call
Then 2024 hit, and boy, did it hit hard.
While everyone else was going about their daily lives, I was having my own little financial crisis. I started learning about currency devaluation and money printing, and let me tell you, it was like a bucket of ice water to the face.
I realized something that scared the pants off me:
Despite following all the "rules," I was getting poorer every single day.
My exact thought? "Oh fuck."
Inflation was eating my savings for breakfast, and my investments were barely keeping pace. It was like running on a treadmill that kept speeding up – exhausting and getting me nowhere.
The more I learned about how our financial system actually works, the more I realized we've all been sold a bit of a lie.
The constant money printing? The devaluation of currencies? It's like we're all in a game of Monopoly, but the bank can just print more money whenever it wants.
Enter Bitcoin: The Reluctant Introduction
It was during this time that a mate of mine wouldn't shut up about Bitcoin. At first, I thought he'd lost the plot. But then he said something that stuck with me:
"Adam, mate, it's not about getting rich quick. It's about not getting poor slowly."
That hit home. Hard.
The Deep Dive
So, I did what any self-respecting engineer would do – I started researching. And let me tell you, it was like going down the rabbit hole in Alice in Wonderland.
Here's what I learned:
- Bitcoin isn't just a currency – it's a whole new financial system.
- It's not controlled by any government or bank – which is pretty revolutionary when you think about it.
- There will only ever be 21 million Bitcoin – unlike our current money, which governments can print at will.
The more I learned, the more I realized: This could be the life raft we need in a sea of inflation and currency devaluation.
Here is my advice for anyone starting out on their crypto or who want to learn more about crypto.
The next rabbit hole is the word of Decentralized Finance (DeFi) and the potential to earn passive yields on your crypto.
Bitcoin: The Hard Asset for the Digital Age
Now, let's dive into why I think Bitcoin is the ultimate hard asset for our digital age.
Bitcoin: Not Just Another Currency
Here's the thing about Bitcoin – it's not just some newfangled digital currency. It's the only asset that isn't directly tied to the fiat system. Sure, we talk about Bitcoin's price in dollars, but its foundation is in Satoshi's, operating on a completely different economic philosophy that counters our current, frankly messed up, financial system.
A Hedge Against the Entire System
When I say Bitcoin is a hedge, I don't just mean against inflation. I mean it's a hedge against the entire financial system. Here's why:
- Scarcity: There will only ever be 21 million Bitcoin. No central bank can decide to "print" more.
- Decentralization: It's not controlled by any government or institution.
- Transferability: You can send it anywhere in the world, almost instantly.
These features make Bitcoin uniquely positioned to maintain value in a world where traditional currencies are being devalued at an alarming rate.
Beyond Bitcoin: Exploring Other Alternative Investments
While Bitcoin is my main focus, I do dabble in other investments. Here's my approach:
Altcoins: A Means to an End
I invest in altcoins, but with a very specific strategy:
- Maximum 25% of my crypto portfolio
- Only held during bull markets
- All profits go into buying more Bitcoin during bear markets
Remember, for me, altcoins are just a way to accumulate more Bitcoin. I don't hold onto them long-term.
The Jury's Still Out on Traditional Assets
To be honest, I'm still figuring out the role of traditional assets in my portfolio. With everything seemingly linked to the old financial system, I'm cautious. This is an area I'm still researching heavily.
Navigating the Challenges: Building a Resilient Portfolio
Building a resilient portfolio in this new world isn't easy. Here's where I'm at:
Bitcoin: The Cornerstone
For me, Bitcoin is the only crypto I'll hold long-term. It's my entire strategy and, as dramatic as it sounds, my life raft in these turbulent financial waters.
The Question of Diversification
I'm still grappling with how to diversify beyond crypto. With traditional assets so tied to the system I'm trying to hedge against, it's a tricky balance.
The Importance of Continuous Learning in the Crypto Space
If there's one thing I've learned, it's that you never stop learning in this space. Here's how I stay informed:
- The free Skool group by Rose Tree Crypto: An amazing resource for crypto education.
- "The Bitcoin Standard" book: A must-read for understanding Bitcoin's economic principles.
- Scribd subscription: For access to a wealth of books on crypto and finance.
The crypto space moves fast, and there's always something new to learn. Staying informed isn't just helpful – it's essential.
Wrapping It Up
So there you have it, folks. My journey from a traditional finance guy to a Bitcoin believer. It's been a wild ride, and I'm sure there's plenty more to come.
Remember, I'm not a financial advisor, and this isn't financial advice. I'm just sharing my experiences and what I've learned along the way.
Always do your own research and never invest more than you can afford to lose.
But if there's one thing I want you to take away from this post, it's this:
The world is changing, and our approach to money needs to change with it.
Whether it's Bitcoin or something else, we need to start thinking outside the box if we want to achieve true financial independence and personal sovereignty.
So, what do you think? Are you ready to take control of your financial future? Have you had any experiences with Bitcoin or other cryptocurrencies? I'd love to hear your thoughts in the comments below.
And hey, if you found this post helpful, why not share it with a friend who might be interested? After all, we're all in this crazy financial world together.
Until next time, stay curious, stay informed, and most importantly, stay sovereign!
