I was thinking about the following hypothetical the other day:
Let's assume that bitcoin goes to 100-300K (let's say, 200K average) this cycle and somewhere along the line you sell a substantial % to invest in property, luxuries, etc ( whichever you choose).
In 10 years afterwards, bitcoin goes to 5 mil, which means that you only "captured" just 4% of the potential value.
How would you feel about it? I guess, it would also depend on the remainder (that you didn't sell), but still.
Personally, I know that years later, I am not particularly fond of my decisions to sell AMZN, AAPL and TSLA early, even though I made very nice gains on them.
Sometimes, I consider these occurancies as my investment follies, but, again, you cannot be 100% efficient.
Of course, it is possible to NEVER sell btc and, basically, put this decision on the shoulders of descendants, but you cannot guarantee that they would be wise about it, right?
At least, I can't.
At some point, I would have to start to spend btc and this point is coming relatively soon.
Alas, to spend even a relatively small amount of btc on things like kitchen remodeling causes a bit of mixed feelings on my part as I contemplate the scenarios described above.
That could be one expensive kitchen 5-10 years down the road.
Withdrawals from IRA are taxable and I put all my stables back into the market during 2023.
I would probably do a mix of "things", but don't want to take on HELOC or anything like this.
Decisions, decisions...
Let's assume that bitcoin goes to 100-300K (let's say, 200K average) this cycle and somewhere along the line you sell a substantial % to invest in property, luxuries, etc ( whichever you choose).
In 10 years afterwards, bitcoin goes to 5 mil, which means that you only "captured" just 4% of the potential value.
How would you feel about it? I guess, it would also depend on the remainder (that you didn't sell), but still.
Personally, I know that years later, I am not particularly fond of my decisions to sell AMZN, AAPL and TSLA early, even though I made very nice gains on them.
Sometimes, I consider these occurancies as my investment follies, but, again, you cannot be 100% efficient.
Of course, it is possible to NEVER sell btc and, basically, put this decision on the shoulders of descendants, but you cannot guarantee that they would be wise about it, right?
At least, I can't.
At some point, I would have to start to spend btc and this point is coming relatively soon.
Alas, to spend even a relatively small amount of btc on things like kitchen remodeling causes a bit of mixed feelings on my part as I contemplate the scenarios described above.
That could be one expensive kitchen 5-10 years down the road.
Withdrawals from IRA are taxable and I put all my stables back into the market during 2023.
I would probably do a mix of "things", but don't want to take on HELOC or anything like this.
Decisions, decisions...
Borrow against your bitcoin, no capital gains tax either. That is how rich people do it I am reading. Now I would not trust some random new startup to facilitate this but fine against IBIT in your brokerage account.
sounds like a not-your-keys-not-your-coins situation to me...
What, you selling your corn including covering for CGT?
Well, I think that's exactly the thing. I have corn, you have an IOU (ETF).
And do you think it's possible to go from real BTC into an ETF without selling BTC first? I suppose you'll have to pay CGT there too right?
That being said I actually might consider risking part of my stash for a never ending credit... as long BTC goes up forever... Laura
No you don't have bitcoin when you sell it for dollars. And you would have to sell more of it to cover for taxes. Borrowing against your assets is how rich people do it, you do you as with your previous sales of AMZN, AAPL and TSLA.
Since we are into the subject of IOU's you seem to dislike, can you explain what a dollar is?
I think you mistake me for Biodom. I have never sold any "AMZN, AAPL and TSLA"
I even said I'd consider using a small part of my stash to get repeating credit.
But let's play this through...
1)
As you have the credit running (which is lifetime in the "rich" people's game) you'd have to be lifetime in a not-your-keys-not-your-coins situation in order to provide collateral.
2)
The NYKNYC situation even intensifies, because you probably have to over-collateralize because of BTC volatility. For example, to get a 2M$ credit you may need to post 8M$ in BTC or even more. Means when I sell 2M you have 8M in limbo..
3)
We have seen many rug pulls in BTC (collapsing exchanges, lenders etc.). What happens in that case? You have to pay back your credit and worse you have lost x-times the collateral.. in our example, I sold 2M you lost 8M+....
So let's say I'm hesitant. But again, I'd consider a small amount.
Basically, I think BTC is built so that you can self custody, and that is what you should do as a private person. It's built as a "number goes up" thing, enough so that you don't have to borrow against it and can live from it by selling bit by bit. Ask Bob.
And you would have to sell more of it to cover for taxes.
again, it's the same when selling BTC for IBIT.
.