Even $5-10 million of assets generating passive income of $20 to 40K per month
not in the Bitcoin world it won't. No one will pay you interest on Bitcoins. And you'd be stupid to
give control of your coins to others regardless.
Generally, I am talking about traditional investment vehicles that are used for retirement. With traditional investment vehicles, in which people are planning for retirement and to preserve the principle of their investment, investment planners tend to calculate a 3-5% withdrawal rate - 3% being conservative and 5% being more ambitious.
The withdrawal rate assumes that the fund can on average generate that level of interest from a variety of investment assets - of course some years will achieve better returns than other years and some years will lose value..
Since we were talking in the bitcoin sphere, I used the higher rate of 5%. I was NOT strictly assuming that BTC would earn interest and I was NOT necessarily crossing any kind of bridge to talk about whether or how to secure the funds by diversifying them. But, since we are in the bitcoin sphere, I was using the higher rate of 5% in part based on higher expectations of BTC appreciation.
In a traditional retirement investment portfolio, interest from such could be achieved through a diversified investment portfolio combined with a variety of stocks, bonds, index funds and precious metals (and even property investments or funds) - usually very little would be put into any kind of savings account b/c the anticipated returns are so low.
In this case, the interest from such principle amount ($5 to 10 million) could ALSO come by assuming a 5% per year appreciation in the value of bitcoins - of course if a person was wanting to rely on a steady 5% withdrawal rate without eating into the principle, then that person may want to diversify the fund in order that all the eggs are NOT in one basket (the bitcoin basket). On the other hand, sometimes people become fairly bullish and optimistic about a certain asset class and fail to hedge their bets accordingly.. which may or may NOT be o.k. with bitcoin (each of us will likely have differing risk tolerances).
Hopefully, that explains a little better some of my assumptions and presumptions.. .