Turning Super into Supercharged Gains
Supercharge Gains
My Journey with Bitcoin
In early 2020, as the world faced the uncertainty of the COVID-19 pandemic and financial markets tumbled, I found myself re-evaluating my financial strategy. Like many, I had a modest portfolio and limited savings, but the market upheaval highlighted the gaps in my understanding of finance. Terms like "bonds" felt familiar, yet my comprehension of the financial system was surface-level at best.
The pandemic, while a global health crisis, also sparked personal reflection. It revealed the vulnerabilities in the economic structures many of us had trusted, and for me, it became a catalyst for exploring new ways of thinking about savings and investments. This is where my journey with Bitcoin truly began—a journey that would reshape not only my financial strategy but also my perspective on wealth management, especially in the context of superannuation.
My Learning Curve
With the unexpected slowdown of daily life during the pandemic, I suddenly had time—time to learn, reflect, and explore. No longer bound by the daily commute or routine work schedules, I immersed myself in digital resources to understand finance and Bitcoin better.
Platforms like YouTube became invaluable. The Real Vision Daily Briefing offered deep insights into the world of finance beyond traditional narratives. I also turned to the What Bitcoin Did podcast, which featured expert interviews and made complex Bitcoin concepts easy to digest. Another key influence was Preston Pysh’s podcasts, which broke down intricate financial ideas into accessible, actionable knowledge.
Alongside these, I tuned into Bloomberg Live for a more conventional view of the financial landscape, providing a balance between mainstream and alternative perspectives. This phase of self-education was overwhelming at times, but it was also transformative, helping me see the financial system through a new lens.
This steep learning curve laid the foundation for my growing confidence in Bitcoin, and it was clear that this digital asset could play a pivotal role in my financial future.
Deciding to Invest in Bitcoin
After months of research, I reached a critical decision: to invest in Bitcoin. This wasn’t a choice I made lightly. It came after I understood Bitcoin’s core principles—its fixed supply of 21 million coins, decentralization, and resistance to inflation.
Bitcoin’s scarcity mirrors that of traditional hard assets like gold, but with the added advantage of being digital. Its fixed supply ensured that, unlike fiat currencies, Bitcoin couldn’t be inflated away by central banks. This scarcity, coupled with its decentralized nature, made Bitcoin an attractive alternative to government-controlled currencies. The fact that no single entity could control or censor Bitcoin gave me confidence in its long-term resilience.
I started small, investing $100 per week, learning how to buy, store, and secure Bitcoin properly. Over time, as my understanding deepened, so did my commitment. Eventually, I took a bold step: liquidating my modest share portfolio and converting my savings into Bitcoin. This decision wasn’t just financial; it was a shift in mindset—a recognition that Bitcoin represented more than just an investment opportunity. It was a new financial paradigm, offering a level of autonomy and control I hadn’t experienced before.
Transitioning Superannuation to Bitcoin
One of the most significant decisions I made was to shift my superannuation into Bitcoin, challenging the conventional wisdom surrounding retirement planning. Traditionally, we’re taught to trust institutional superannuation funds to manage our retirement savings. The 60/40 portfolio model, which allocates 60% to stocks and 40% to bonds, has been the gold standard for decades.
However, after the 2008 financial crisis, cracks began to appear in this strategy. As I learned more about the financial system, I became increasingly uneasy about trusting my retirement to a system that seemed manipulated and fraught with risks. When I approached my superannuation provider, Australian Super, to inquire about Bitcoin exposure, their dismissive and inaccurate response confirmed my fears—they weren’t equipped to navigate this new financial landscape.
This realization prompted me to explore Self-Managed Super Funds (SMSFs), which allow individuals to take direct control of their super. The process of setting up an SMSF required careful planning—establishing a corporate trustee, understanding compliance regulations, and ensuring I followed the rules. By July 2021, I had transferred my retirement savings into a Bitcoin-focused SMSF, marking a significant milestone in my financial journey.
This move wasn’t just about managing my retirement; it was about taking full ownership of my financial future. I embraced self-custody of my Bitcoin, ensuring that my savings were aligned with an asset I truly believed in.
The Performance of Bitcoin vs. Traditional Super
Investing in Bitcoin has been a journey full of both volatility and rewards. While Bitcoin’s price fluctuations are well-known, what I’ve learned is the importance of differentiating volatility from risk. Bitcoin operates on a predictable four-year cycle, driven by halvings, and those who hold through these cycles have historically seen strong returns.
Here’s how my Bitcoin investments have performed over the past few years:
Year 1: +302%
Year 2: +60%
Year 3: -64%
Year to Date: +125%
Total over 4 years: +420%
In contrast, had I remained with Australian Super:
Year 1: +20%
Year 2: -3%
Year 3: +8%
Year to Date: 0%
Total over 4 years: +26%
The difference is clear: while Bitcoin’s volatility can be nerve-wracking, its long-term potential far outweighs the short-term ups and downs. More importantly, holding Bitcoin in self-custody has provided a level of autonomy and security that traditional super funds simply can’t offer.
Educating and Empowering Others
Through this experience, I realized how daunting it can be to navigate the complexities of SMSFs and Bitcoin. That’s why I created bitcoinsuper.io—a comprehensive, free resource designed to demystify the process of incorporating Bitcoin into retirement planning.
Here are some key steps for anyone considering a similar path:
Start Small: Before diving into SMSFs, invest a small amount in Bitcoin to learn how to manage it.
Educate Yourself: Leverage podcasts, YouTube videos, and other resources to build a well-rounded understanding of Bitcoin.
Engage with the Community: Attend Bitcoin meetups and connect with experienced Bitcoiners for advice and insights.
Evaluate Your Super Fund: Assess your current superannuation arrangement—are they truly acting in your best interest?
Investing in Bitcoin, especially through an SMSF, carries risks and complexities. However, with the right knowledge and preparation, it’s a powerful way to take control of your financial future.
Conclusion: A Paradigm Shift in Financial Thinking
My journey from a traditional financial mindset to embracing Bitcoin has been transformative. It has empowered me to take control of my retirement savings and look beyond the limitations of traditional institutions. While this path may not be for everyone, even a small allocation to Bitcoin could significantly impact your retirement planning.
If my story resonates with you, I encourage you to explore further. Visit bitcoinsuper.io for detailed guides, or reach out to me and my team at thebitcoinadviser.com. We’re here to help you understand Bitcoin, secure your investments, and ensure peace of mind.
Every financial journey is unique, but one thing is universal—the desire for a secure and comfortable retirement. Start your journey today, and give your future self the peace of mind you deserve.
