Topic: Selling All Cryptocurrency for Fiat and Earning Interest? - page 2. (Read 257 times)

I don't know why people put much of their earning or savings in bitcoin hoping that the price will skyrocket just like that, if your are oppo tuned to get a profit in bitcoin just try to do other things which you have stated here, with circumstances soruinding bitcoin itself I was meant to know that it's better if we invest what we can afford to lose, I hear this everytime I want to invest, the inventor of bitcoin never gave assurance that when you invest you will be profiting without losing, with this idea we should know that bitcoin can profit you and can still make you poor, I didn't say that we shouldn't hold but before we do that we should think twice.

So it wouldn't make sense for someone to just put everything into a CD and invest and get 5% interest?  If someone has 2 million doillars, that would be 100k which is more than enough for almost any location.

What do you mean USD someday go bust?


Do you mean it becomes worthless?  I am confused if that is what you mean.  If it goes bust, you mean it would be worth nothing?  That doesn't make sense.  So you telling me someone with millions of dollars or even 100k or 5k in their bank account and that is all they have and they don't own any property or stocks etc will have nothing?



If that is what you mean, would that mean every currency in the world would also go bust then?  How would that happen to the US dollar?  I know that happened with other countries but I forgot the name of those.  There is one popular one where nobody wants to be paid in that currency but I don't recall the name.  I know Argentina is one of these countries but there is another popular one.

Is it really as simple as that though? What about taxes? Can you report all of them easily? What about the inflation/deflation rate? While it is unlikely, the risk that the USD someday go bust is still there, isn't it? How would you protect your wealth then if all of them are just fiat, that has no underlying value at all? Might as well buy gold & Bitcoin imo. At the end of the day, risk management is your answer. Diversify your assets carefully. It sure sounds good when you can just live your life from bank interest, but you can also lose all of your wealth easily if you trust them (there are many examples related to how people get screwed up because they trust them too much).

Well, the other option is hodling Bitcoin and hoping that it will grow more and more and you can not only retire but live luxurious life off it. But I think the risk/reward ratio suggests that it's better to retire asap by taking Bitcoin profits and reinvesting them in safe assets. Because just as Bitcoin can go to millions, it could also crash to the ground, and that would be catastrophic for someone who planned to retire with Bitcoin gains - now they would have to start from scratch.

So say someone has 2.5 million dollars.  The then buy a house for 1 million and now have 1.5 million.  They could put 1 million in a 5% interest on CD for $50,000 a year in interest income.  They still have 500k left.  Even though they don't have to pay rent, well they have to pay property taxes and other things so it won't be as much as rent.  But if they are not working any job, would this person still have enough money to not work again?  Now if this same person rents a portion of their 1 million dollar house... Let's say it could be a 3 family house and not one where they have it all to themselves, well this person could collect rent to from 2 people and well that would easily pay the property taxes and everything correct?  Or what about buying 2 apartments that are 500k each?  Then live in one and rent the other way?  However, I always heard apartments aren't as good for buying for rental property compared to house?  However, it would seem apartments are easier to rent?



So it would seem as an American who wouldn't want to work, they need to have at least 2 million dollars in cash total after taxes but it should be higher?  When I look at it... I mean someone could put 1.5 million dollars earning 5% interest and earn $75,000 a year which is more than your average American income.  So now they could rent an apartment for 1500 dollar apartment but that would not be a good apartment if it was in a major city though.  And this person wouldn't even be able to rent a 2000 dollar apartment since they would need to earn 80,000 a year right?  Since rent and income in the US seem to be 40x?  So if this person rent is 1500 dollars, well their expenses everything else assuming they are not a big spender probably shouldn't be more than $32,000 or so?  So this person could basically live off the interest?  However this was only recently the last few years interest went up to 5% and back few years ago it was like 1% or 2%.  So wouldn't it be hard if interest rates for savings and CD go down?  However, I always heard the average returns for putting money in the stock market was like 10% and around 7% adjusted for inflation.  With 7%, isn't 2 million dollars more than enough?  I mean sure this person wouldn't be making a lot of money but they can still live off the interest right? 



Obviously the answer to this is much different if you don't live in the US or in 1st world countries.  I mean some countries you can have $200,000 and you would be considered rich there.  But for Americans, how money money do you need?  And if you had that money, wouldn't it make sense to put it all or most of it in the bank and earn interest?  I know there was one poster that said it was stupid because if btc earns on average xx percent, earning 5% interest in the bank is stupid which makes sense.  Of course you can keep the btc or sell some and then the btc can go much higher.  And obviously if that happens, someone having 1 million dollars in crypto could have 5 million or even 10 million or more.  And with anyone with 5 million or more, well that would be enough to retire and do things you would never be able to.  If you have 5 million in the bank, you could put 2 million in the bank and earn 100k and that is more than enough to live off and do pretty much most things you want right?

So I created a thread about people who say they sell all their fiat, whether it's money in the bank and their house and stocks for btc and many people say very few people do that.  And people agree it's an exaggeration as it doesn't even make sense since when someone says they sold everything for btc, well obviously they need fiat in the bank to pay for expenses like food and rent.  Most people do say it would be ridiculous to sell your house and stocks for btc as that is risky.  Now what about the opposite?



Shouldn't the goal at the end be have cash in the bank so you could invest it?  Whether it's putting all the money in a CD and earn interest or put it in some safe stocks that average 7% a year?  I mean let say someone invested in crypto and it could be $5,000 or $10,000 or $50,000.  If the investment is an amount to where they could sell all their crypto and then after paying the taxes and put all that money in a CD or savings account and earn interest from it and live off interest, would't that seem to be a good idea for most people?  The thing is if you are in the US, well you need a lot of money to retire especially if you don't own property since you would have to pay a lot in rent.  Now let's say someone has 1 million dollars in crypto.  Let's say after taxes, they get back $650,000.  This number probably should be higher right if this is a long term holder correct?  But when you factor state taxes and those things, wouldn't long term capital gains for higher amounts at 20% still mean their total tax would probably be like 30% total or so at least?  I used 33% tax as the higher amount for someone with long term capital gains.



Now if someone has $650,000 in the US and has let say $25,000 total in the bank and owns nothing... by that I mean no house or car or stocks or anything... well that person certainly isn't rich at all especially if this person doesn't earn an average income at their job.  Like if this person lives in a cheap apartment and they don't work anymore, well that $650,000 isn't going to do much if someone does nothing for years.  Their money in the bank would only go down.  Would people agree on this?  Now if that person puts $500,000 in the bank and earns 5% interest on a CD, well that is $25,000 a year.  That could even be more income than this person makes a year as their job for example.  But obviously that isn't enough to live off of.  But if someone has 2 million dollars in crypto.  Let's say they have 1.3 million after taxes.  Is that even enough to live off interest in the US?  If they already own a house and paid it off or an apartment, certainly yes right?  But if not and rent, then certainly not?  If that person doesn't work their job anymore, well they still have living expenses.  But if you put 1 million dollars earning 5% interest on a CD, that would be $50,000 a year.  That is more than enough to live off of in most states in the US but not enough in the major ones.  Like you are not going to retire and live in a nice area and earning 50k in interest income right?  But for someone to not want to work anymore, how much money would one need to have the bank after taxes?  I recall the number they used for Americans to be wealthy was 2-3 million dollars or so.  That number seems right?