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What would you do with a bitcoin windfall?

I’m not a true believer in crypto, but I used to play around with it. I have received a 5-figure USD sum of bitcoin from the MtGox settlement, and I’m considering my options. It is a true windfall. It was worth maybe $100-200 when I used to play daytrader and shop silk road with it.

We are on track for early retirement as it is, but my “smart money” intuition says pay the long-term capital gains and invest in funds, how we do everything else. More money earlier is always good.

My gambler side says to withdraw some maybe, but split the rest into a half dozen likely candidates for someday real world crypto use which may take off. I don’t stay up to date on them anymore, so this would take some real research.

The weird Trumpy stuff going on with BTC makes me think it couldn’t hurt to hold through the election in case prepper types panic buy it lol.

My wife says it’s unexpected so just leave it as a high-risk part of our whole portfolio, but I worry she underestimates the risk and scamminess of it all.

stoy ,

Whenever I have got a big lump sum of money I get worried, I have put it into my savings account to not accidentaly spend the money untill I know it is mine, just incase it was given by mistake.

So let’s say that I had mined 12BTC right when bitcoin was started.

That would be worth 765702 Euros today…

I’d probably sell it off in peices, which would probably lower the value since I am flooding the market in a relatively short ammount of time.

Then I’d have to report my profits to the tax man, and since I didn’t buy the BTC I’d have to check with them how exactly to report it, if it is anything like stocks where you don’t know the purchase price, I’d have to pay 30% tax on 80% of the total ammount sold.

So for simplicity lets say that I managed to get 700 000 Euro for my 12BTC, I would need to pay tax on 560 000 Euro, meaning I would pay 168 000 Euro, giving me 532 000 Euro to play with.

Untill I got the all clear from the tax office, I would not touch the money.

I’d put 400 000 Euro into my retirenment right away, and use 80 000 Euro to try my luck at investing in lobg term funds.

I’d then have 56 000 Euro as fun money…

Most of it would just stay in my savings account, increasing my buffer, but I would spend part of it on a new camera and lenses, new monitors for my home computer and a new Ducky keyboard.

Nothing huge.

candle_lighter ,
@candle_lighter@lemmy.ml avatar

Too be honest I don’t see a future in any crypto except for Monero. I’m not a crypto expert but it’s the only one anyone actually uses as currency because it’s designed to be more stable and transactions are kept private.

kambusha ,

I’m not sure how much the bitcoins compare to your overall wealth, but it’s generally ok to put 1-5% into high-risk ventures. Bitcoin is worth something at the moment, because people trust that it is worth something. It doesn’t matter that you can’t really use it for anything at the moment (i.e., it’s not more efficient for transactions, or moving money across borders, and you definitely can’t eat it, or make anything with it). Given that major institutions and retirement accounts (and even countries) are investing in bitcoin via ETFs or directly, you could say that there is a level of trust in bitcoin that it will maintain & increase in price.

Long story short, it’s ok to have a small portion of your overall portfolio in a high-risk/high-reward venture. So you may consider keeping some of it in bitcoin, and converting the rest into low-cost index funds.

InternetCitizen2 ,

New motorcycle

subignition ,
@subignition@fedia.io avatar

I had to do a double take, I thought you said a 5 figure amount of BTC at first.

Cash it all out and shove it into a high yield savings account, or use it to increase contributions to your retirement accounts if you don't have any immediate need.

TootSweet ,

I just sold all my Bitcoin like less than a month ago. (It took me a week for it to sync before I could actually sell it. It was a royal PITA. And people say this is the future of currency?)

I didn’t have anywhere near the amount you’re talking about, but like you I don’t believe there’s ultimatley any future in blockchain.

I agree with what others are saying here. Sell it. It could well go permanently to zero at any time. Trying to time the market is how you end up walking away with nothing. Put it in, if nothing else, a savings account.

TheBigBrother ,

Nice try bitch…

Beardwin ,

Take your free money and put into something with real, actual backing value. Ignore the gambler side - it’s just the devil on your shoulder. This is free money. Let it work for you over the next couple decades.

bionicjoey ,

Not financial advice, but what I’d do is just put it in a medium-high risk ETF. Something that should turn a decent gain in the long term but has some real underlying fundamentals unlike crypto.

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