Shall I hold or invest with %12.5 premium per year ? - page 5.

1Referee

legendary

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Quote from: Fakhoury on November 08, 2015, 06:42:10 PM

Hello all,

I've good sum of bitcoins, and they represent good sum as well in my local currency.

I was thinking about selling all my bitcoins, lock that fiat money in investing certificates in my bank where I get %12.5 premium per year and buy bitcoins every month (it will take some time to re-buy again all my bitcoins, but not that long, could be 1-2 years as I will include my fiat salary as well).

Or, shall I hold and keep holding ?

If you were me, what would you do and why ?

Thanks in advance.

I would definitely not sell all my coins. But it is wise to spread your investments if you are worried about not getting the right returns. 12.5% per year is quite a high interest rate, especially for banks. If I were in your position I would simply hold the coins. Bitcoin will give you a much better return than the 12.5% the bank is offering you.

kyrios_

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I would say split up your investment. Maybe half half? Bitcoin has some interest bearing wallets such as HAObtc which maybe worth looking into

Dodnastes

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Quote from: Fakhoury on November 08, 2015, 07:15:36 PM

Quote from: BitcoinNewsMagazine on November 08, 2015, 07:09:57 PM

I think it comes down to your outlook for bitcoin price over the next year or so. If your analysis leads you to believe bitcoin price will continue to appreciate at a rate greater than 12.5% per year why sell? Now if it is a question of diversification and you feel too much of your capital is tied up in bitcoin I could understand selling a portion now to diversify into fiat or gold, and pay down debt or mortgages.

My buddy, thanks for your reply.

To be honest, I want to invest my money.

As you know me well, I'm insanely permabull and I know that we can reach $50K and $100K in the coming 5-12 years.

But what I would like to do is the following,

Buy again my frozen BTC while enjoying guaranteed profit per month (%12.5 premium divided by 12 months). As I will buy all the sold BTC again with that profit PLUS my salary profit.

I don't want to diversify my portfolio nor I've any debt to pay.

There are not many people you can get 12% interest (return) with your bitcoin. Do you have idea where to find one?

NorrisK

legendary

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Quote from: StevenLiang on November 09, 2015, 11:25:36 AM

Quote from: Fakhoury on November 08, 2015, 06:42:10 PM

Hello all,

I've good sum of bitcoins, and they represent good sum as well in my local currency.

I was thinking about selling all my bitcoins, lock that fiat money in investing certificates in my bank where I get %12.5 premium per year and buy bitcoins every month (it will take some time to re-buy again all my bitcoins, but not that long, could be 1-2 years as I will include my fiat salary as well).

Or, shall I hold and keep holding ?

If you were me, what would you do and why ?

Thanks in advance.

It's depend on how many bitcoin i have.
If i were you, and let's say i have 20 BTC

I will keep it until december, and sell some btc to make investment on (maybe obligation) 12,5% per year.
Just do not put all your "investment money" on 1 place.

I know some people really get addict on bitcoin. But i think is not wise if we invest all our money into btc alone.
You can try to hold Yuan or Euro or maybe dollar (if dollar is not your local currency)

Indeed. I know it may be tempting to put all your coins on one thing, as the potential profit is greatest.

But remember, that the potential losses are just as big in that way. Or the potential missing out if bitcoin surges again later this month.

Possum577

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Loose lips sink sigs!

I'd invest in Greece right now. I'd start with small amounts and short maturities. They need the help, i'm willing to take the risk to help them. Now, if only it were easy for me to buy some Greece bonds!

StevenLiang

full member

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Quote from: Fakhoury on November 08, 2015, 06:42:10 PM

Hello all,

I've good sum of bitcoins, and they represent good sum as well in my local currency.

I was thinking about selling all my bitcoins, lock that fiat money in investing certificates in my bank where I get %12.5 premium per year and buy bitcoins every month (it will take some time to re-buy again all my bitcoins, but not that long, could be 1-2 years as I will include my fiat salary as well).

Or, shall I hold and keep holding ?

If you were me, what would you do and why ?

Thanks in advance.

It's depend on how many bitcoin i have.
If i were you, and let's say i have 20 BTC

I will keep it until december, and sell some btc to make investment on (maybe obligation) 12,5% per year.
Just do not put all your "investment money" on 1 place.

I know some people really get addict on bitcoin. But i think is not wise if we invest all our money into btc alone.
You can try to hold Yuan or Euro or maybe dollar (if dollar is not your local currency)

Fakhoury

legendary

Activity: 1386

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Permabull Bitcoin Investor

Well, I made my mind.

I will keep buying and hodling BTC, because as many of you said, we can witness a bubble or another amazing bull market run that can dust away that %12.5 premium easily.

Thank you all for your help, and you are proving for me, that day by day, we are a big lovely family.

Thanks again.

Sir_lagsalot

sr. member

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12.5% is pretty high for premium/interest :-/

If that interest is legit, milk it for all it's worth. Just be wary.

W/ BTC's upcoming halving, I'd say if there is a suuden price jump, quickly sell to fiat. Holding is a good idea unless this happens.

Nonetheless, good luck on your investments!

tmfp

legendary

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"Common rogue from Russia with a bare ass."

Quote from: NorrisK on November 09, 2015, 03:50:23 AM

Do you need to put the money all at once? Otherwise you could use your monthly fiat income you would use to rebuy the bitcoin to put in that investment.

What country are you from? Sounds like a European one with the banking guarantee.

Most systems "guarantee" their banks' deposits, I'd be interested to find 12.5% in Europe.

I just look at OP being a permabull and then being locked in to fiat, BTC free, for the next six months and think "Keep the faith brother".

NorrisK

legendary

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Do you need to put the money all at once? Otherwise you could use your monthly fiat income you would use to rebuy the bitcoin to put in that investment.

What country are you from? Sounds like a European one with the banking guarantee.

odolvlobo

legendary

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Quote from: Fakhoury on November 08, 2015, 06:42:10 PM

I was thinking about selling all my bitcoins, lock that fiat money in investing certificates in my bank where I get %12.5 premium per year and buy bitcoins every month (it will take some time to re-buy again all my bitcoins, but not that long, could be 1-2 years as I will include my fiat salary as well).

Loaning money to your bank is risky. You should instead be deciding which asset to buy -- gold, real estate, bitcoins, etc.

n2004al

legendary

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Quote from: Fakhoury on November 08, 2015, 06:42:10 PM

Hello all,

I've good sum of bitcoins, and they represent good sum as well in my local currency.

I was thinking about selling all my bitcoins, lock that fiat money in investing certificates in my bank where I get %12.5 premium per year and buy bitcoins every month (it will take some time to re-buy again all my bitcoins, but not that long, could be 1-2 years as I will include my fiat salary as well).

Or, shall I hold and keep holding ?

If you were me, what would you do and why ?

Thanks in advance.

I will advice to sell only few of those Fakhoury. Or to not sell at all (better). That 12.5% you will earn from the investing in certificates will be easily surpassed by another "bubble" like this that happen this last week. The price of bitcoin rose 100% and drop only 50%. So you have (since today) 50% evaluation of your bitcoins only within one week. With to much probability it will be another one event like this (at least) with the halving (if everything goes as must go) and you if will sell your bitcoin you will find yourself with less bitcoin than before if the price of bitcoin will go at least over the 12.5% given by the investing certificates. Percentage which, with the behaviour of bitcoin, is very probable to happen without to much difficulty.

Anyhow can happen even the contrary. With bitcoin no one prediction and reason can be true. It is unpredictable. Now I see for example that the price of it is about 366 us dollar. So about 14-20 us dollar fewer than yesterday. If you sell now and the price goes more down you can earn even from the further drop of the actual price.

But if it were me I wouldn't sell nothing.

BitcoinBlackjack

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I would do just about anything for 12.5% a year! Seems too good to be true

CryptoGreek

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Quote from: Slark on November 08, 2015, 09:14:37 PM

Unfortunately Greeks recent history is not positive in terms of managing their national debt. It was not surprising that government reached out for money of their citizens to help itself.
If you are living in any country with similar problems and suspect that your national currency is not so stable, don't invest in it and don't keep it!

I see numerous comments about Greece in this forum, and the easy thing to say is that "Greeks didn't manage their debt".
The thing is, that you don't really know when the time comes where your country suddenly has a debt problem. Imagine living in a country with a 110% Debt/GDP ratio (a normal ratio nowadays), everything is fine, until one day some EU officials decide that your debt is a problem. And your country suddenly needs a bail-out. Things can go south very fast, if someone decides that your state debt is a problem.

Quote from: Slark on November 08, 2015, 09:14:37 PM

Also history of Cyprus and Greek show, that your money stored in banks are no longer fully yours...

That's exactly what I described in my blog post earlier:
Are your money safe in a Greek bank? Think twice.

romjpn

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Quote from: Possum577 on November 08, 2015, 07:47:46 PM

Where can you get a note paying 12.5%? Which bank? I might be interested.

Quote from: tmfp on November 08, 2015, 07:27:08 PM

Good luck whatever you decide, I would just point out the obvious and say that if your fiat inflation is say 10% then your real return is not 12.5%, but 2.5%.
Given your permabull stance, I would stick with Bitcoin personally. Moon, and all that.

If inflation is 10% per year we'll have much bigger problems to contend with!

If your bank offer it, you can have an account in South African Rands for example, and get more (indexed on inflation). My Japanese bank offer that (I've never used it though). Because returns on JPY are ridiculously low.

Slark

legendary

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Quote from: CryptoGreek on November 08, 2015, 07:50:52 PM

Dear Fakhoury, a word of advise:
Thousands of Greeks lost their savings, after the 2012 PSI haircut, which included their "super-duper-guaranteed " government-issued bonds.
There is no such thing as "100% Guaranteed", when banks and governments are involved.
Just HODL! Grin

Unfortunately Greeks recent history is not positive in terms of managing their national debt. It was not surprising that government reached out for money of their citizens to help itself.
If you are living in any country with similar problems and suspect that your national currency is not so stable, don't invest in it and don't keep it!
Also history of Cyprus and Greek show, that your money stored in banks are no longer fully yours...

pattu1

hero member

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Holding is my opinion, if you have the risk appetite.
Investing in Bank Certificates is safe, but you have the risk of missing out on huge bitcoin price movements.

CryptoGreek

newbie

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Merit: 0

Dear Fakhoury, a word of advise:
Thousands of Greeks lost their savings, after the 2012 PSI haircut, which included their "super-duper-guaranteed " government-issued bonds.
There is no such thing as "100% Guaranteed", when banks and governments are involved.
Just HODL! Grin

Possum577

sr. member

Activity: 434

Merit: 250

Loose lips sink sigs!

Where can you get a note paying 12.5%? Which bank? I might be interested.

Quote from: tmfp on November 08, 2015, 07:27:08 PM

Good luck whatever you decide, I would just point out the obvious and say that if your fiat inflation is say 10% then your real return is not 12.5%, but 2.5%.
Given your permabull stance, I would stick with Bitcoin personally. Moon, and all that.

If inflation is 10% per year we'll have much bigger problems to contend with!

Fakhoury

legendary

Activity: 1386

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Permabull Bitcoin Investor

Quote from: tmfp on November 08, 2015, 07:27:08 PM

Good luck whatever you decide, I would just point out the obvious and say that if your fiat inflation is say 10% then your real return is not 12.5%, but 2.5%.
Given your permabull stance, I would stick with Bitcoin personally. Moon, and all that.

I totally understand you, but you've missed one or two points,

1. We can't be ultra sure that in a duration of 10-12 years by max. (the duration where I will be holding BTC), that we will not convert BTC to fiat, so we will be forced to use inflated money.
2. I will cover the BTC I've sold in 1-2 years max., so that inflation won't be that big in that duration.

I'm in a mind mess really.

I want a good investment opportunity.

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