Topic: Borrowed $1,000,000 (1 million dollars) from my dad to invest in BTC (serious) - page 7. (Read 18460 times)

Incidentally, I was just thinking of starting a service for people exactly like the OP. Rich and clueless about bitcoin. Clueless is not meant to be condescending, just that they don't know about properly securing their bitcoins.

It's called an Offshore Paper Wallet ... essentially, I secure your bitcoins for you, in a country outside of your own. Cold storage. When you want to withdraw, come over here and show up, I help you send what you have to address(es) you control on your own wallet, minus a small % or storage cost fee.

See, there are smart and technical people who know about bitcoin, they know how to secure their stash, they know cold storage, they know paper wallets, they know offline transactions ... but they don't have money or bitcoins.

Then there are rich and smart people who know about bitcoins, how to secure them, and have money. Not my market.

I'm after the rich and not so technically inclined people (can also do those who have less, but if you're only going to send a small amount, you might as well just learn how to do it yourself). The ones who have money, but don't completely understand bitcoin security.

Or the ones who want to deny they control the private keys or have access to the coins. They are in cold storage, and the only place where the private keys are, are outside the country.

Obviously, I can not protect your coins if your family is held hostage and you come here to claim it. I also can't protect your coins if someone impersonates you, gets all your identity information, wears a mission impossible rubber mask to look like you, and comes here to claim your coins.

What I can do, is keep your coins in cold storage where no online hacker can steal it. Think of it as offshore safe deposit box, except I generate a completely random private key and bitcoin address(es) for you, print it on paper, then store it in a safe place.

If you know how to do that, do it. If you care to spend the time to learn how to do it, do it. If you can't be bothered, then you have to send the coins somewhere you are pretty damn sure will be safe.

Anything online (exchanges, online web wallets, even your own bitcoin-qt wallet connected to the internet) is out of the question.

How many before this post advised you not to put all you eggs in one basket? Scam or not, DO NOT trust!

And if you have to ask if Coinbase is secure, please educate yourself some more before you buy.

why not? it would drive the value up for all of us. he could let us know when he's buying, so after he puts in his buy order, we could sell and then buy it back when it bottoms out 

Now it is a good time to buy, but don't all in at once

putting $1 million into bitcoin and not knowing how to secure your assets is just crazy to me.

Saying this, you could just arb you're 10k bitstamp limit at a time, by feeding USD into bitcoin-e buying bitcoin and transfering to bitstamp/gox(providing they're not still ridiculously slow on transfers). You'd need to set up a bank account locally in prague (for reduced fees and speedy upload times) but would totally reduce risk and you could have you're own money to play with without risking your dads in a short amount of time.

as they spend all of their extra money on booze and lottery tickets instead of saving it . I don't feel sorry for those people. I don't have a lot of income either, according to the government im "poor", but i chose to live below my already modest means, im thrifty, i save every extra penny and im definitely on track to having well over a million someday before i die.

*edit* this mostly only applies to people in the west. you could say that op is more lucky to have been born in the west than anything else.

Uh huh.  Nobody with $1m to burn will buy that you can make a $100k return in 1 year on a startup.  Most startups don't turn a profit until 5 years down the road.

This sounds like a joke, but I'll bite... I suppose he could be thinking you'll borrow to cover the difference when you don't meet your target, then learn a valuable life lesson when your investment fails and you're $400k in debt once you sell off your assets, and have to declare bankruptcy.

What he doesn't realize is that you're dumping it in something on purely speculative grounds and could double your money or lose it all by a difference of days.  It doesn't even sound like you understand how bitcoin works or what it even is.


That's your first problem.  Bitcoin is not a get rich quick scheme, especially if you know little about how it works.  Speculative bubbles always benefit the moguls, veterans, and hawkish traders at the expense of the young, new, and inexperienced.


This plan is insane.

Bitcoin always spikes in value after a media blitz via a speculative bubble, then crashes hard a few months later.  Those of us who have had their ear to the ground have seen it happen, first in May of 2011, then less so in Jan 2012, then again in August 2012.  Do NOT invest in $1 million in bitcoin unless you are prepared to lose $990,000 of it.

The recent media attention that bitcoin has received is the sole thing fueling this bubble.

See:

http://www.chrisnorstrom.com/wp-content/uploads/2013/11/mf_bitcoin6b_f.jpg


This is not a transaction you want to handle online with some random exchange.  Find a bunch then call them up and get a contract with a lawyer in tow, if you're crazy enough to do it.


I doubt there'll be enough sellers at any one point in time for you to drop $1 million into the market.  Dropping $1m in a day might actually cause the speculative bubble to burst, since you'd spike the value so quickly that the speculators will panic-sell.

You'd have to buy them up at a slower pace, but that just puts you at even greater risk.


They'd call up whatever exchange service you used and ask them for the information.  If you made a significant return, the bank will notice and report it.  You WILL pay taxes on this, governments proactively look for and try to snap up smaller sums than this.  They would look at what you are doing as free money because you simply could not contest the wealth of evidence they will have on you.  And they'll sit on it for a year so that you pay interest.


Just repeat this mantra: "Bitcoin is not a get-rich-quick scheme, Bitcoin is not a get-rich-quick scheme, Bitcoin is not a get-rich-quick scheme..." until you realize how you're letting the euphoria of naked greed cloud your judgment.

What you should do: return the money to your father and say your projections were flawed as you realized that there were some fundamental problems with your idea.


Basically this.  The gamble is the day the bubble pops; bet safe and you make nothing, get greedy and you lose it all.  If you don't have experience day-trading and aren't prepared to sit at a computer 24/7 monitoring any change in value, you aren't ready for this.

You really need to learn the difference between paper wallets, cold software wallets, hot software wallets and online (web) wallets.
Try each in turn and perform some transactions from each with small amounts of bitcoin. Learn how to best secure and backup each of them.
Buying $1mn of bitcoins without knowing each of these important concepts in detail seems like a recipe for disaster.

I think litecoins really risky, 4 times as many coins doesn't mean it should be 1/4 of the price even if it had as much credibility as Bitcoin. Some braniac worked out an equation for it last year that took into account what 4 times the market depth meant s = n^3 - t. That's not the equation but in most instances it meant litecoin should be 1/33 of bitcoin price and that's pretty much where it's always been.

If possible, buy from BTC-E, in sets of 10-15 coins at a time. Their rates are much lower than Mt.Gox and Bitstamp. As you will be purchasing in bulk amounts... it is MUST to get the lowest possible purchase price.

The storage of the coins can be a big concern. Store them in at least 4 different wallets (offline / paper) and create a dozen backups for each of them.

BTW... I'd consider LTC and NMC extremely risky. Put no more than 10% of your investment in to them.

this is just false

most poeple have about 600$ in their bank account and work over 40 hours a week

One thing to consider is the Second Market fund instead of buying directly. They are well known, and not scammers. Sounds like you'd qualify as an accredited investor with that cash and income, but perhaps not.

Whatever you do, at least use an exchange vs a random person here.

You shouldn't do it colours and big shouty letters can destroy forums. I registered a year and 3-4 months ago and haven't given any serious advice on this thread so not sure why you're getting your panties in a twist.

You're advice wasn't useful. You're advice was serious (unlike mine) and telling him to trust someone he certainly doesn't need to take the risk of trusting.

It's only a million and it Isn't even a gift, its a loan, he has to pay it back. Not that lucky. Lots of people inherit a lot more than that with no strings attached.

Not sure why it was so hard, my dad would loan me 1 million dollars blind no problem 

When it comes to 7-figure amount, I prefer to "scream in red," to be sure that I will be heard!
And my advice is to trust theymos.
And not like you (I do not know you and I do want to know you) that have 500-600 posts, but registered only 3-4 months ago. Maybe you're a normal person or you might be a fraud.
At least I gave useful advice, not like you!

quickly buy bitcoin b4 OP does.