Why Bitcoin Growth Beats Income (Until You Need It)

Here’s how I turned Bitcoin’s wild price swings into a monthly paycheck. And why, if you don’t need the income right now, growth should be your #1 priority.

When my wife told me she was retiring at the end of this year, my first thought was, “Congrats!” My next thought was, “How do I replace that income without touching our investments?”

Most people faced with an income gap rush to income-producing assets—dividend stocks, bonds, maybe a high-yield savings account.

Years ago, I went that route and built a traditional dividend portfolio—a basket of well-known companies paying quarterly dividends. Over several years, it averaged about 4.5% annually. That meant every $100,000 invested generated roughly $4,500 in annual income.

The problem? That’s painfully slow at building wealth. That’s when my thinking changed. If you don’t need the income today, you’re far better off focusing on growth first.

Here’s the simple truth: Growth can buy income when you need it. But income rarely buys growth.

The Bitcoin Growth Engine

We’re living in a unique moment where fiat money is being replaced by real money—Bitcoin. And we’re still early.

Fiat is a rigged game. Inflation quietly steals 8% of your purchasing power each year. Bonds and CDs don’t keep up. Real estate is overleveraged and heavily taxed. Stocks carry significant third-party risk.

Bitcoin flips the script. It’s hard money—a fixed-supply asset that’s outperformed every other asset class over the last decade. While it’s volatile in the short term, that volatility is the engine that drives outsized long-term gains.

If you’re young—or near retirement but not yet drawing on your portfolio—this is your window to let Bitcoin’s growth compound.

Your first goal? Get to 1 Bitcoin. That’s your cornerstone—your inflation-proof savings account for the future. Focus on stacking sats.

How Growth Buys Income

Once you’ve built a strong Bitcoin position, you can convert a portion of your Bitcoin into income. Here’s how I’m doing it.

Earlier this year, I started an experiment with a fund called MSTY (YieldMax MSTR Option Income Strategy ETF). It sells covered calls on MicroStrategy (MSTR), a company that holds over 600,000 Bitcoin.

Think of a covered call like renting out your shares for a monthly fee. You agree to potentially sell your shares at a set price in the future, and in exchange, you get paid upfront. If the stock stays below that price, you keep both the shares andthe payment (called the option premium).

MSTY runs this process at scale, month after month, harvesting premiums from Bitcoin-linked volatility and paying them out as high-yield monthly distributions. When Bitcoin is volatile, premiums are large. When Bitcoin trades flat, premiums shrink—but the payouts keep coming.

Here’s what my recent monthly “rent checks” looked like:

• May: $6,812

• June: $6,056

• July: $5,328

• August: $5,290

This isn’t magic—it’s a structured way to turn volatility into cash flow. In my case, I repurposed funds from my old dividend portfolio plus some new capital. But once you have a strong Bitcoin stack, you could sell a portion and put it into MSTY to generate income—without having to time the market.

Growth vs. Income Snapshot

Why This Matters for Both Young & Older Investors

If you’re young and still earning, growth is your priority. Every dollar you put into Bitcoin now has decades to compound. You don’t need the income yet—let your stack grow.

If you’re older and near retirement, you may need income soon but still want inflation-beating growth. That’s where strategies like MSTY come in—you can turn part of your Bitcoin-linked holdings into cash flow while keeping the rest growing.

The plan:

1. Build your Bitcoin position (growth). Get to 1 Bitcoin if you can. More is even better.

2. Convert a slice of your Bitcoin into MSTY for generating income (when needed)

There are several ways you can use your Bitcoin to generate income. In a future article, I’ll show you how to create tax-free income with your Bitcoin. But first, you need to own Bitcoin—so start stacking.

Why Advisors Won’t Tell You This

Most financial advisors won’t touch Bitcoin. They see volatility and think risk, not opportunity. They can’t earn commissions on telling you to buy and self-custody Bitcoin, so they stick to stocks, bonds, and annuities.

The reality:

• Bonds pay nothing after inflation

• Dividend stocks are expensive

• CDs are “certificates of depreciation”

• Real estate requires huge capital and ongoing work

Bitcoin and Bitcoin-linked funds like MSTY didn’t even exist in the last generation’s playbook. We have new tools—if we’re willing to learn them.

The One Thing to Watch

Volatility-based income strategies like MSTY have variable payouts. Some months will be higher, others lower. That’s normal. The key is to:

• Know that payouts are variable

• Only allocate a portion of your total net worth (portfolio)

• Remember: your primary goal is to preserve and grow your Bitcoin

2 Steps to Start Building Growth Before Income

1. Prioritize Bitcoin accumulation — Stack sats until you’ve built a core position (target: at least 1 BTC).

2. Explore Bitcoin-linked income options — Study products like MSTY, but only after you have your growth foundation or you really need to replace income to survive.

The Bottom Line

If you’re early in your journey—or mid to late career but not yet living off your portfolio—focus on growth first. Don’t waste years building a slow dividend portfolio when Bitcoin offers superior long-term potential. Later, you can turn a piece of that growth into income when you need it.

That’s exactly what I’m doing as our household income changes. I’m not selling Bitcoin every month. I’m not locking money into low-yield, inflation-eroded assets. I’m using Bitcoin’s volatility to create optionality—income.

The prior generation got their appreciation and income from real estate. This generation will get it from Bitcoin + High-Yield Funds.

Your move.

Ready to Take the Next Step?

If this article has opened your eyes to the reality of our monetary system and Bitcoin's role as perfect money, you're probably wondering: "What do I do next?" If that’s you check out this article, The Simple Bitcoin Strategy That's Beating Every Traditional Investment. This wil show you my 10% solution to building real wealth.