Topic: Moderately wealthy individual going cold-bloodedly all in - page 2. (Read 5036 times)

Depends on what he wants out of life. ask him if offered the choice between having a 50% chance of becoming a billionare and a 50% chance of dieing of a heart attack or a 100% chance of living the rest of his life in mediocrity and a 0% chance of dieing of a heart attack what would he chose? If the former than by all means go all in on bitcoin. However if he is buying bitcoins under the impression that bitcoins are in any way a safe asset he is dangerously mistaken.

the banks can call in his mortgage at anytime and will do so as soon as he buys the bitcoins  

First my focus is in the later part about bitcoin itself, I don't know why you can't see it. Second on this subforum someone could just talk bullshit and tell plain lies and later get away with it like nothing has happened, no need to do repentance and self-disclosure like this guy did, we have plenty of these people around and I am sure you know them.

I'm not sure what to make of this.

To be considered pump and dump one has to spread falsely positive information, now, there is no way I can find out if the OP tells the truth(I give him benefit of the doubt), but there is hardly any false "inside" information you can spread about bitcoin itself, everything is there for everyone to know.

Not saying you did. I think one should analyze the case for and against and then make a decision. The great thing about Bitcoin is it helps people take responsibility for themselves. As the Great Credit Contraction grinds on; on the other side the people with the wealth will be those who deserve it.

Bitcoin is still a high risk thing. We do not know what will happen in the next months or years. Yes, probably its price will skyrocket, but maybe not, who know?

Yeah sure, but if you sell BTC when it is worth 1$ and you bought it at 45$, well not a good thing.

Tell him to pay off his house first.

That is getting to be an increasingly more difficult question to answer because of the depth in the exchanges. As The Great Credit Contraction continues the safety and liquidity value proposition Bitcoin offers will get increasingly more attention as capital burrows down the liquidity pyramid into safer and more liquid assets.



This info graphic of potential bitcoin prices makes the case in favor of allocating capital towards bitcoin.



I think 100x makes several very good points in the case against allocating capital towards bitcoin.

Every individual has their own risk tolerance.

How's that one performing? Any positive returns on the mortgage yet?

Ya think?

Isn't this kind of stuff disallowed from the forum? Sounds like pump and dump

     And what if it goes to zero?

Absolutely. As an experienced precious metals dealer, you of all people know a good thing when you see it. In fact, I am surprised that you are also not considering switching your business to becoming a Bitcoin dealer rather than dealing with all those diverse metals. What a great post. You sir, are a true visionary. My advice is to lead by example and go all-in yourself as well since you don't see any reason against your client doing so.

Besides "you should always diversify" none really.

He sounds like he has a decent knowledge of investing, so if you haven't convinced him yet then you probably won't.  If he knows the risks and wants to, then sure, why not.

This is the first time I've heard the term "cold-bloodedly" used in a positive way.

Traditional wisdom will say to diversify, however, he has a solid point. If everything else is losing value, it's pretty tempting to go all in with Bitcoin.

I hope he truly understands the fundamentals.

In my work as precious metals dealer since 2006, I have got to know a variety of customers.

Now one of them revealed to me his plan of going all-in in bitcoin. I would like to follow your concerns to him.

As far as I know, this man (34) owns a house worth about € 400,000 and has a mortgage to about half that value. He also operates a business that does not have significant assets if realized, but is a specialist niche field and generates about € 100,000 profit per year. His wife is also a professional with high income but is 3 months pregnant to their 1st child. Their investments are in mostly in metals and also BTC, valued at least € 500,000 (this is hardest for me to estimate exactly).

He said that he thinks bitcoin will in all probability succeed and make them tremendously wealthy. Because nothing else is giving good returns just now, he thinks that there is no reason to keep money in other investments. Their financial situation is solid and both are able to generate income. They have their own house and live rather modest life as all Finns do. The investment is long term, there is no plan to use leverage or trade. Just go all-in and buy at least 15,000 BTC. I don't know what he wants to do with them when they are worth millions.

The argument that I just cannot refute is: "What is the point in having other investments that underperform, and what is the point in having cash, since BTC can be cashed when needed?"