Bitcoin as Retirement Planning: Model Calculation Shows How Many BTC Are Needed for Financial Freedom

Bitcoin as a Building Block for Retirement Planning

Bitcoin as a building block for retirement planning still seems speculative to many. However, when considering the cryptocurrency's long-term performance, a different picture emerges according to a current analysis: with an average annual return of around 40 percent, Bitcoin historically ranks among the highest-yielding asset classes ^[1].

A new model calculation now examines how realistic a life without employment income through Bitcoin investments actually is – and how many Bitcoin would be required for this ^[1]. The model calculation addresses the question of what amount of Bitcoin would be needed to generate a passive annual income of $100,000 without touching the principal ^[1].

Price Target of $600,000 by 2035

The calculations assume that a Bitcoin price of $600,000 by 2035 is realistic ^[1]. At this price level, a comparatively small Bitcoin position would be sufficient to no longer have to work in the long term ^[1]. The desire for financial independence through cryptocurrencies is widespread, and the model calculation arrives at a surprising result regarding the required amount of Bitcoin ^[1].

Strategy Focuses on Long-Term Investment Horizon

How seriously institutional investors take Bitcoin as a long-term investment is demonstrated by the example of Strategy. The company holds 671,268 BTC, or 3.2 percent of the total circulating supply, more Bitcoin than any other company in the world ^[2].

In the Coin Stories podcast, Phong Le, CEO of Strategy, emphasized a clear long-term investment horizon: "We're holding for eternity" ^[2]. Le described the recent subdued price development in Bitcoin as primarily sentiment-driven. "Bitcoin attracts a lot of attention when it rises, and when Bitcoin falls, the floor drops out," Le said in the interview ^[2].

Traditional Financial Institutions Discovering Bitcoin

Le pointed out that Strategy is increasingly engaging in conversations with traditional financial institutions according to their own statements ^[2]. These discussions initially focus on basic offerings such as custody, trading, and "savings accounts for Bitcoin," building upon this with Bitcoin loans, yield-oriented products, and the issuance of Bitcoin-backed securities ^[2].

The largest banks in the United States and worldwide would offer "the entire package of services" within the next "two to three years," according to Le ^[2]. This indicates an increasing integration of Bitcoin into the traditional financial system.

Dividend Strategy and Financial Stability

According to Le, a concrete component of Strategy's strategy is the preferred stock "Stretch" with the Nasdaq ticker STRC. Strategy describes STRC as a perpetual preferred stock with a current 10.75 percent annual dividend, payable monthly in cash, with the rate regularly adjusted to encourage trading near the par value of $100 ^[2].

Most recently, Strategy also built up a U.S. dollar reserve of approximately $1.44 billion to support dividend and interest payments ^[2]. These measures demonstrate how companies integrate Bitcoin as a long-term asset investment into their financial strategy while simultaneously securing liquidity for ongoing obligations.