Fred Krueger Reveals Smart Bitcoin Strategy for Long-Term Wealth Building

Prominent investor and entrepreneur Fred Krueger, author of The Big Bitcoin Book, has sparked debate with a unique strategy on using Bitcoin (BTC) as a yield-generating asset. Known for his interest in Bitcoin, Solana (SOL), and AI, Krueger shared a 10-year financial model on X, where he has over 163,000 followers.

Krueger compares two approaches for managing a $2 million crypto portfolio. The first strategy involves holding BTC and selling just $100,000 annually to cover expenses, assuming a 40% compound annual growth rate (CAGR) and 20% income tax. Over 10 years, this cautious method yields nearly $49.7 million in cash, highlighting the compounding power of Bitcoin when only gradually liquidated.

The second strategy suggests allocating 80% ($1.59 million) to a traditional high-yield asset, such as Texas real estate with a 10% return, while investing the remaining $410,000 in BTC. After a decade, this route results in only $11 million—significantly less than the first.

Krueger’s model attracted attention and commentary. Some users noted the timing risk of selling BTC due to price volatility. Others proposed borrowing against BTC instead of selling, thus avoiding capital gains taxes while maintaining long-term exposure. Mention was also made of MicroStrategy (MSTR) stock and MSTY, an ETF that tracks its performance, as viable alternatives.

While BTC is down 1.5% in the last 24 hours, trading at $104,500, Krueger’s long-term outlook reinforces the view that careful BTC management may outperform traditional yield strategies. His approach encourages Bitcoiners to rethink the role of BTC not just as a store of value, but as a strategic tool for sustained wealth creation.