A lot of Bitcoiners are waking up to find themselves rich these days, and I suspect that most of them have little experience handling significant amounts of money. And so, having been around the block a few times, I think I should pass along some lessons.
Shut your mouth. Seriously. Tell your spouse, of course, and if there’s someone else you trust deeply, but after that shut up. If asked (your friends must know that you have Bitcoin) be vague. And do not be the schmuck who buys the Lamborghini. Repeat these words: Low Profile.
Go ahead and buy a house. You’ll always need somewhere to live, so go ahead and buy a home. But notice that I said a house, not mansion. (Again, Low Profile.) Buy a nice, comfortable place where you can live pleasantly. Make sure you’ll have good neighbors. Think about maintenance. Think long term.
Buy assets. An asset is something that brings money in. A boat, for example, is an not an asset, it’s an expense. A functioning business is an asset. Buy assets.
Put your extra Bitcoins to work building the crypto-economy. We need an entire, functioning, cryptocurrency ecosystem, and Bitcoin was just the start. Find a project you can put your heart and soul into (or start your own), and pursue it.
Understand that money management is a skill. If you haven’t spent years building up that skill, be clear on the fact that you don’t have it. Find professionals to help you. Don’t give anyone “the keys to the kingdom,” and don’t give away any of your decision-making power, but do get advice from experienced people.
Don’t get cocky. Having more money than your friends can make you over-estimate your genius. Your money came from both insight and luck, not from insight alone. Don’t forget that. Now your job is to earn your luck.
Don’t let money define you. If you start thinking about status… if you start enjoying people paying deference to you because you have money… you’ll get sucked into a miserable life of “he has a yacht and I don’t.” It never ends and it’s a miserable way to spend decades.
So, decide right now who you want to be, how you’d like the world to be, and how you’d like to be remembered. Use your money for those things. Start getting wise. It takes time and effort, but you’re as able as anyone else.
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10 thoughts on “Advice To Bitcoiners Who Are Finding Themselves Rich”
My pleasure. 🙂
Your advice seems to ignore the tax liabilities that will be incurred.
In the US, Bitcoin appreciation is considered a capitol gain. And presuming it came from BTC owned 6 months, that’s roughly 25% But, as always, talk to your accountant.
The advise on spending the money is good, people need to learn how to live within their own means , you may want to add not to use it as a down payment on a depreciating asset . I am also opposed to intangible assets , the only thing to invest in is Hard Assets , if you want gold , take delivery , don’t let some investment banker keep it in an account .
I recently started looking into Bitcoin when I found out my son invested in that and the stock market . I use to be a stock broker and know a little about investments. I told him to dump all his stocks and explained the reasons , Number one reason is he bought expensive stocks and didn’t get enough to take a good position . After research on bitcoin I told him to dump that too and take his profits because it was going to drop (it was shooting up at the time) , I told him he could rebuy after the drop , he didn’t then it dropped and he sold on the way down and made only a tiny profit . Bitcoin value is completely based on Speculation , and it is not a currency , it’s value is tied to US Dollars only , the currency exchanges don’t value it , the price is only in dollar price world wide no matter what money you trade it in for. If there was a way to make a cyber currency based on Gold (or something) it may be a winner , but it is based on Nothing , at least if you buy stock the business has assets of value .
The stock and bitcoins he bought were all done on line with no broker , this is a BIG Problem , why because everything he invested in would have been ILLEGAL with a broker . Why ? because he is considered a Unqualified buyer , his Net Worth and income are almost nothing . A stock broker would be in big trouble to run his trades if he lost money . Bit coin on the other hand is not regulated by anyone so anything goes , all the sites I looked at used Buzzwords and made projections that would be ILLEGAL if it were a stock.
Now here is the other issue if bitcoin takes off , The federal reserve will Kill anyone who becomes their competition including presidents. Anyone can become a coin miner , right? What if the FED or some rich person sets up miners to have more than 51% of the mines ? Then all of them separately hack and alter the systems check and balance system and since they have 51% they could claim the other 49% are hackers , the computer will decide based in the signals of the 51% being right.
You are presenting a very dark view of Bitcoin. And the Fed is not almighty.
Hope we can agree to disagree on the bitcoin thing . I subscribed because I agree with most of what you have to say , especially issues on Christianity , it seems like we are identical twins or clones on that subject.
“Hope we can agree to disagree on the bitcoin thing .”
No problem at all.
“I subscribed because I agree with most of what you have to say, especially issues on Christianity , it seems like we are identical twins or clones on that subject.”
Thanks for carrying the torch! As a green & red anarchist with 20 yrs working fighting environmental racism and developing regenerative agroforestry systems inspired by indigenous practices, it is great to see another wing of anarchism shining. For so long, anarchists(free people) have been deprived of access to resources, survived, repressed, and worse; so to see a secure currency and passive technology for creating wealth and safe spaces is truly liberating. Looks like the cats out of the bag, society will be transformed within 10 years. So stoked…of course I wish I heard about it sooner, lol.
I very much appreciate your kind words, DE. Thanks.
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