Most FIRE people hate crypto: They hate Bitcoin, hate Ethereum, and think the entire ecosystem is dominated by short-term-thinking shitcoiners who just want to steal from others and get rich quick.
FIRE is a financially conservative movement adopted by some of the most financially conservative people. But I DO think there is an overlap between the FIRE and crypto worlds: For us in the crypto space, the principles of FIRE can be appealing as we aim to escape the traditional 9-to-6 job.
Financial independence, retire early (FIRE) has been gaining traction in the last 20 years. The basic principle of FIRE is to save aggressively and invest intelligently to achieve financial independence and retire early.
The FIRE movement is centered around the idea of living frugally and saving as much as possible in order to invest in assets that generate passive income. This can include a variety of assets, from real estate to index funds. The goal is to achieve a high enough passive income stream that you can support your lifestyle without relying on a traditional job.
The principle behind FIRE is passive sources of income: Once your monthly passive income is greater than your monthly expenses, you’ve arrived.
Many people are drawn to FIRE because it offers a sense of control. By living below their means and investing aggressively, they can achieve financial independence and retire early, giving them the freedom to pursue their passions without being tied to a traditional job.
But what about the crypto space? Can the principles of FIRE be applied here? After all, cryptocurrencies are a relatively new asset class, and their short-term volatility and lack (?) of passive income generation can make it hard to square this circle.
Until now.
With ETH staking unlocked and a relatively consistent 4%ish return on ETH over a longer period of time, we might have developed the world’s first sustainable crypto FIRE model - at scale! (And some cool UBI ideas but we’ll get into those later on…)
Have you been thinking similarly? Send me a message or comment below. Somehow. Not sure Mirror supports this… Yet? Sigh.
Fine, I’m on Twitter now. DM me.
