Bank Interest VS Bitcoin profits - page 9.

CyberKuro

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Quote from: Kakmakr on January 04, 2017, 01:46:42 AM

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

Wow, I'm impressed by your friend > $455 * BTC20 = $9,100 invested, wait for a year and he got $20,100 return for BTC20.
He has big funds obviously and get bigger profits, if I have $10,000 now, I will purchase bitcoin and wait for uncertain time when I desperately need for money and than sell it, I guess min 1 year as well to extract more money from bitcoin savings.
But, I won't sell all of it instantly, better to divide and sell partly depend on my needs.

MingLee

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Quote from: PokerFace3 on May 14, 2017, 01:12:11 PM

With respect to my country's interest paying rate, I need to wait for ~10 years to double my saving whereas bitcoin has doubled my investments in less than 5 months. Hence there will be no meaning at all to consider about bank interests for my saving by any means.

My friends do talk about diversification like investing some lower percentage in banks. But I refused as I prefer and believe only bitcoin for my saving.

Wait, your country has bank interest rates that are close to 7%? I would have to imagine that your country also has a very high inflation rate then too, otherwise your country is literally beating every other first-world country when ti comes to investment potential. Here I get maybe 1% annually, which is basically garbage-tier. Now it's only worth my time investing in other mediums since I just lose money otherwise.

PokerFace3

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With respect to my country's interest paying rate, I need to wait for ~10 years to double my saving whereas bitcoin has doubled my investments in less than 5 months. Hence there will be no meaning at all to consider about bank interests for my saving by any means.

My friends do talk about diversification like investing some lower percentage in banks. But I refused as I prefer and believe only bitcoin for my saving.

Elsada

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Bitcoin profit is better than bank interest. However bitcoin is not stable and quite risky.
anyway, I still love bitcoin and I spend much money for trading bitcoin .

freebutcaged

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As much as Bitcoin is great in earning you huge percentage of profit it has a down side as well which could lead to you becoming bankrupt.
When banks go bankrupt they tend to go asking from their central banks and they will give them enough money to get back on without considering the cause.
When people take money and don't return it and keep spending, someone has to pay which is a central bank which in turn is causing inflation and the end users-people will be the ones suffering.

If you ever noticed that Bitcoin has something similar to a central bank but it's backed by people themselves with free market investment, meaning when people invest and support Bitcoin they have already earned their money by working and by doing something unlike central banks just print the money.

Bitcoin can not exist if there are no miners and miners can not exist if there are no Bitcoins, but can money exist without central banks? yes it can and we're here as the community acting as the central bank.

Next time you want to compare these two systems think about the universal gap between them.
Imagine there were only 21M dollars in the world, $1 would've worth 100KG of gold?
Or imagine a decentralized USD.

Leonard2016

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Quote from: DrGuns4Hands on May 14, 2017, 09:51:16 AM

If the concern here is for safety purposes? Banks still the best.

if you are talking about the value then you are right since fiat doesn't lose value under normal circumstances.
but if you mean "safety or security" then you are wrong, nothing is safer than bitcoin at this moment. a cold storage is literary impenetrable.

Quote

But in terms of fast profit or income increase? Bitcoin still the best to choose.

Bitcoin? It's world wide currency. The price is not that stable.

because it is still in the early stages and it is still being adopted and there are a lot more people left who need to adopt it Wink

Quote

The possibility is 50/50! Everytime the price increase and decrease but it's okay. It's a part of it. Sometimes, taking risk is good.

it disagree, it is nowhere near 50/50. the chances of price rise is a lot higher than drop. in long term i say it is even close to 99% chance of rising and short term obviously it changes for example right now there is a bigger chance of dipping for a correction in price than there is for rising.

DrGuns4Hands

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If the concern here is for safety purposes? Banks still the best. But in terms of fast profit or income increase? Bitcoin still the best to choose.

Bitcoin? It's world wide currency. The price is not that stable. The possibility is 50/50! Everytime the price increase and decrease but it's okay. It's a part of it. Sometimes, taking risk is good.

lumeire

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Quote from: Hyena on May 14, 2017, 09:06:42 AM

Quote from: Kakmakr on January 04, 2017, 01:46:42 AM

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

your friend is going to regret for the rest of his life that he cashed out

Well if the goal is profits entirely then he did profit a lot so it wouldn't matter anymore.

Hyena

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Quote from: Kakmakr on January 04, 2017, 01:46:42 AM

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

your friend is going to regret for the rest of his life that he cashed out

ekoice

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Quote from: Kakmakr on January 04, 2017, 01:46:42 AM

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

Definitely,after seeing your friend's profit,no one would disagree to follow his steps.$10000 in a year.That sounds great.

Jherek

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Quote from: Kakmakr on January 04, 2017, 01:46:42 AM

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

if i had it then 100% yep. ->omfg price just dropped WTF?!?!?!?! sell all your coins before it goes even lower!!!! Q.Q<- <- this is what some people will do... as for me ill just sit on that $10,o0o.0o until prices gets back up again which i wholeheartedly believe it will then ill sick on that $10,000 / btc until its not $10,000 anymore but $65/$85,0o0.o0... then ill withdraw as needed for purchases and try to keep from creating a dump xD. reacting to quickly to any situation is never a good thing. just like the opposite( reacting to slowly to any situation is never a good thing) always use the best balance of your available options as your course of action.

ImHash

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In my country you could get maximum 23% interest annually and receive monthly if you don't touch the money for 5 long years. for 3 years is 21% and for 1 year is 19%. deposit your money and receive 12.5% after 6 months.

Now with bitcoin there is the potential to earn 40% profit in 1 month.

Please note that I said "potential".

He's happy with $7000 or $10,000 profit in a year?

I know many people still not satisfied with $15,000 in a week.

I guess everyone has different expectations from life, but we all have the tolerance to live with the minimums but are we?

JakaE

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Quote from: Zinkin on May 14, 2017, 01:56:43 AM

Quote from: Chrismeister on February 22, 2017, 05:42:55 PM

Quote from: Bitcoinsummoner on February 22, 2017, 01:42:54 PM

Bitcoin still the best to choose in terms of fast profit increase.. unlike in bank low interest every year.. but banks still the best for safety purposes.. since we have local banks unlike bitcoin its world wide currency. and the price is not stable there are possibility the price will crash.. but we are still making profit every time the price is increase and decrease..

In profit.. Yes
In risk.. Yes

Just look what will happen if the ETF will not go through. I think a major correction will be in place. I read an article on coindesk stating that the price we see now is with the ETF calculcated. Which means No ETF, no profit.

There will not be big correction as most people do not think it will pass.

Look at the date when the posts were written. He was talking about the original ETF decision in March and he was pretty much correct, like you are correct now.
I also wouldn't expect a big dump, especially following a pretty big correction we had the last few days.

Zinkin

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Quote from: Chrismeister on February 22, 2017, 05:42:55 PM

Quote from: Bitcoinsummoner on February 22, 2017, 01:42:54 PM

Bitcoin still the best to choose in terms of fast profit increase.. unlike in bank low interest every year.. but banks still the best for safety purposes.. since we have local banks unlike bitcoin its world wide currency. and the price is not stable there are possibility the price will crash.. but we are still making profit every time the price is increase and decrease..

In profit.. Yes
In risk.. Yes

Just look what will happen if the ETF will not go through. I think a major correction will be in place. I read an article on coindesk stating that the price we see now is with the ETF calculcated. Which means No ETF, no profit.

There will not be big correction as most people do not think it will pass.

Bitcoinsummoner

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Maintain Social Distance, Stay safe.

Bitcoin still the best to choose in terms of fast profit increase.. unlike in bank low interest every year.. but banks still the best for safety purposes.. since we have local banks unlike bitcoin its world wide currency. and the price is not stable there are possibility the price will crash.. but we are still making profit every time the price is increase and decrease..

Chrismeister

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Quote from: Bitcoinsummoner on February 22, 2017, 01:42:54 PM

Bitcoin still the best to choose in terms of fast profit increase.. unlike in bank low interest every year.. but banks still the best for safety purposes.. since we have local banks unlike bitcoin its world wide currency. and the price is not stable there are possibility the price will crash.. but we are still making profit every time the price is increase and decrease..

In profit.. Yes
In risk.. Yes

Just look what will happen if the ETF will not go through. I think a major correction will be in place. I read an article on coindesk stating that the price we see now is with the ETF calculcated. Which means No ETF, no profit.

LFC_Bitcoin

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Quote from: podyx on January 04, 2017, 04:23:34 AM

That man will be in pain a few months from now.

He may be smiling now but just wait.

He's cashed out way too early, even if you're at a point when you're delighted with your profits you should never sell 100% of your bitcoin's.

Who knows what price we will see in a few years.

angaper

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Perhaps your friend only had a lucky break, because there is no guarantee that every year the bitcoin price will increase 100%. Other times the price has dropped or only increased a bit. I personally would not invest so much at this current price, because in my view the higher the price, the greater the risk.

AbsoluteT

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bitcoin profits are obviously a much higher +EV bitcoin is going to the fucking moon soon if you have anything not in bitcoins right now you are just leaving money on the table

BrewMaster

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Quote from: quake313 on January 04, 2017, 03:05:51 AM

What bank offers 10% interest? Please, I need to know this.

a bank in a country that has an inflation rate of higher than 20%
i am guessing OP is from India, but i may be wrong.

where i live (a third world country) you can get 18% interest rate since the inflation rate doesn't fit in this comment

There are also some special offers for higher amount of money with rates as big as 25% annually.

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