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More or less complicated bets on rising or falling prices are too boring for you - or too risky?

Then use the Bitcoin Life pension model. You benefit from inflation arbitrage, profit sharing and zero timing.

 Estimate your yields *)

single contribution (without loss fund portion):

monthly contribution: 225

annual contribution dynamic: 5 %

loss fund (0 %) / provident (100 %)

term: 25 years

BTC volatility: 15 %

profit participation: 12 %

bitcoin price increase: 20 % per year

euro inflation: 3 % per year

result: ca. 1.708.235
adjusted for inflation: ca. 797.702

With conventional reinvestment, this results in the following inflation-adjusted, initial, monthly retirement benefits:

annual interest rate
0 % 2 % 4 % 6 %
5 years 13.295 € 13.826 € 14.357 € 14.887 €
10 years 6.647 € 7.255 € 7.880 € 8.520 €
15 years 4.431 € 5.072 € 5.748 € 6.457 €
20 years 3.323 € 3.985 € 4.703 € 5.467 €
25 years 2.659 € 3.338 € 4.091 € 4.905 €
30 years 2.215 € 2.909 € 3.696 € 4.555 €
eternal n/a 1.329 € 2.659 € 3.988 €

*) WITHOUT WARRANTY. Non-binding estimate, based on the assumption that the calculation bases entered are constant over the entire term. The actual result will differ. It may be significantly below or above the calculation. Performance and yield must not be promised or guaranteed: ACCORDING TO THE ARTICLES OF ASSOCIATION THERE IS NO LEGAL CLAIM TO RECEIVING BENEFIT PAYMENTS.

single contribution

If you want to make a one-off contribution at the beginning (or later), which is not to be allocated to the loss compensation fund but for pension provision, then set the allocation in the members' area accordingly: 0% loss compensation fund and 100% pension provision.

You may change this setting at any time for later periods. These changes will not affect the allocation of your previous contributions.

The pension benefit may be » more than the gains from a pure bitcoin investment.

regular contributions

Whether you are seeking financial cushioning for unforeseen life situations or for (early) retirement or both, you can participate in the benefit plan with regular contributions.

You yourself decide on the amount and frequency of your contributions. You are never obliged!

If you are applying for benefits, Bitcoin Life does not require you to provide evidence of necessity.

dynamic inflation adjustment

The membership fee you choose at the beginning of your membership will have much less purchasing power in a few years than it does today.

So if you were to pay the same contribution (in euros) over the whole period, the contribution in terms of purchasing power would fall year after year.

You can avoid this by increasing the contribution by a certain percentage each year. This is called "contribution dynamics".

Contributions from later years will not benefit from the compound interest effect as long as contributions from the early years of membership. Therefore, the dynamic rate must be higher than the inflation rate.

A good approach is to set the dynamics at least equal to the rate of income growth (possibly plus inflation). With inflation at 2 per cent and annual income growth at 3 per cent, this would be a dynamic rate of 5 per cent.

Since you are never obliged to contribute, you can always adjust your contributions upwards or downwards or even suspend them completely.

From a financial point of view, it actually makes most sense - in view of the compound interest effect - to make as high a contribution as possible at the outset and to set the dynamic rate high and reduce it later if necessary when the contributions increase exponentially too strongly.

pension plan and/or loss compensation plan

Bitcoin Life fulfils a double task. On the one hand, we do our best to ensure that unforeseen events - such as accidents, unexpected deaths or otherwise - do not lead to economic hardship.

On the other hand, foreseeable events, such as age-related retirement, are also a financial challenge. There are benefits here too.

Bitcoin Life keeps separate accounts for the contributions: for loss compensation and for providence. If you aim for providence benefits as high as possible, you should assign 100 % of your contribution to the providence plan.

You may adjust your assignment once each calendar quarter.

The details are regulated in the benefit plan.

time horizon and early availability

There is no obligation to pay a contribution fixed in advance, and you are not bound to a fixed term.

The term you enter here allows you to make an estimate for the benefit planning.

You may apply for benefits or partial benefits at any time. The details are regulated in the benefit plan.

volatility and zero timing

The price of Bitcoin oscillates irregularly around an assumed average line. The measure of the average distance of the actual price from the average value is described by the so-called volatility.

The speculative approach aims to invest in coins when the price is most likely to be close to a price extremum. However, practice shows that only a few speculative market participants regularly succeed in doing so.

Those with a more conservative, security-oriented approach can take advantage of the high volatility of bitcoin in another way:

If you buy bitcoins for the same amount in euros every month, the exchange rate fluctuations will cause you to buy more coins when the exchange rate is low and to buy less coins at a higher price. This zero-timing strategy - where you don't have to worry about the "right" time - is in certain circumstances superior to other strategies. This is always the case when volatility is sufficiently high and alternative forms of investment only offer low interest rates.

Members who regularly make constant - or dynamic - contributions in euros by setting up a standing order will automatically and without further action benefit from this strategy.

risk- and profit sharing

The profit participation should not be confused with the arbitrage profit or the price or rate increases of the bitcoin.

Profit participation results from the fact that a portion of the capital contributed for pension purposes is used as a buffer for the loss compensation fund. This means that this small share is lost to the providence fund in years with an unfavourable current account balance.

In the form of a (notional) "risk premium", this creates a profit in the years with a favourable current account, which increases capital growth in addition to price gains.

Even if the profits do not participate in the compound interest effect, the final result of this procedure may still be higher than that of a pure investment in Bitcoins.

inflation arbitrage

In large parts of the population - and even in professionally educated circles - there are misunderstandings about the mechanics of the long-term price development of Bitcoin.

Of course, speculative market participants have a strong influence on short-term price movements.

However, the long-term and sustainable success of investing in Bitcoin is mainly based on two factors:

1.) Central banks control the money supply and thus the inflation rates of fiat currencies. The money supply is growing steadily because a minimum level of inflation is essential for economic growth and stability.

The inflation rate of bitcoin, on the other hand, is slowing down steadily. This is because the mathematical protocol of Bitcoin states that the proportion of new coins added by mining will decrease approximately every 10 minutes in relation to the number of coins already in circulation. In addition, the reward for the release of a block is regularly halved. And finally, the maximum amount of all bitcoins is limited to almost 21 million.

Given the widening asymmetry between the inflation rates of Fiat money and bitcoin, experts expect the price of bitcoin to remain stable over the long term compared to fiat currencies such as the euro.

2.) Driven by point 1, bitcoin is used by an increasing number of product suppliers. This increases demand and therefore the price in relation to fiat currencies.

However, for the sake of prudence, a comparatively lower value than the increase in the price of bitcoin should be assumed for longer maturities (e.g. over 25 years) to provide a realistic estimate of the result.

These are the historical values measured in euro at the beginning of each year (annual price increases on a 5-year average):

    2018 - 2023: 5.98 % per year
    2017 - 2022: 114.98 % per year
    2016 - 2021: 127.82 % per year
    2015 - 2020: 89.25 % per year
    2014 - 2019: 42.27 % per year
    2013 - 2018: 309.10 % per year
    2012 - 2017: 186.41 % per year
    2011 - 2016: 345.92 % per year

Older rates are not available as Bitcoin has only been available since 2009.

historical BTC rates in euro:
1.1.2011: 0.22 | 1.1.2012: 4.77 | 1.1.2013: 10.14 | 1.1.2014: 558.23 | 1.1.2015: 264.12 | 1.1.2016: 387.89 | 1.1.2017: 919.25 | 1.1.2018: 11,619.07 | 1.1.2019: 3,253.22 | 1.1.2020: 6,411.56 | 1.1.2021: 23,805.01 | 1.1.2022: 42,208.89 | 1.1.2023: 15,533.17


In order to calculate the purchasing power of the future capital - and hence of a possible retirement pension - the loss of purchasing power of the Fiat currency must be taken into account.

Set the long-term average inflation rate you expect. The more carefully you calculate, the higher the value you set.

For the years 2005 to 2019, the Federal Statistical Office has put the average inflation rate at 1.42 %.

historical euro inflation rates (Germany):
2019: 1,4 % | 2018: 1,8 % | 2017: 1,5 % | 2016: 0,5 % | 2015: 0,5 % | 2014: 1,0 % | 2013: 1,4 % | 2012: 2,0 % | 2011: 2,1 % | 2010: 1,1 % | 2009: 0,3 % | 2008: 2,6 % | 2007: 2,3 % | 2006: 1,6 % | 2005: 1,5 %

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