Should I Sell my Bitcoin and Other Crypto Assets to Buy a House, or Rent and Get Interest on my Crypto Assets?

[YT3k72Em]

As someone said, this is a buy vs. rent question. Not really about crypto.  If you had the 15 million sitting in a bank or in the stock market would you buy the house?  If you could get a mortgage for most of the value would you buy the house?

 

It's about opportunity cost.  Spend the money up front and lose the ability to invest it, but gain the security of owning your own place. Or, invest the money and use the profits to rent and gain more flexibility.

 

[moldresistant]

I would rather have S&P500 ETFs than the cryptocurrency. Just my opinion.

[Neeranam]

On 8/25/2021 at 1:43 PM, MadMac said:

Has nothing to do with the way you finance it, rent first, try out the neigborhood. Some are loud, some are unexpected. You can always buy later, it's a buyer market. But you will unlikely be able to sell it once you made the decision. So plan wisely.

Indeed, however renting a house 600km from my actual house seems like a big headache. 

I guess I could go ahead and sell it but you wouldn't believe how much furniture and stuff I have after 27 years of hoarding! 

Before buying, I'll be spying on the house at many different hours to check for dogs, loudspeakers, noisy students, etc. 

Maybe they have storage facilities in Hua Hin. 

[ukrules]

On 8/24/2021 at 12:46 PM, Chivas said:

Whilst I certainly do own limited crypto (and I do mean limited) make no mistake one of these days you guys will wake up one morning open the "wallet" and find zilch nada zero there. All gone disappeared

Wrong.

[lkn]

On 8/24/2021 at 12:52 PM, Sharp said:

Unfortunately it would take to much of my time explain how wrong you are but after 1000s of hours learning about Bitcoin, blockchain, fundamentals, utility case and reading the Bitcoin white paper I can assure you that your comment will not age well but you are entitled to you opinion wrong as it may be. 

It shouldn’t take long to explain why something has value (for the foresable future).

 

Bitcoin though has no value, it does not generate a cashflow (like a bond), it does not provide exposure to the global economy (like a stock), it does not provide shelter (like real estate), it does not store energy (like oil or food), it cannot be transformed into pretty things or tools (like precious/metals), etc.

 

The only reason why you can sell one bitcoin today for $49k, is because someone else thinks they can buy it, and later sell it at $100k. But at best, this is just a zero sum game, i.e. if you play poker with your friends, you have a stack of chips, and somebody may make a lot of money at the end of the night, but when you count all the chips, the total amount of money is not higher than what you started with.

 

For bitcoin though, it’s actually worse, because every 10th minute, 6.25 bitcoins are given to some lucky miner / mining pool, and that covers their electricity costs, so in the poker analogy, it would be if the house visited your table every 10th minute and took $313.5M from all the pool of chips.

 

A naive counterargument to the above might be “but after 10 years, and we are still up”. This only means that new money is still entering the system. It took more than a decade for Bernie Madoff’s ponzi scheme to collapse, because most people don’t cash out.

 

Furthermore, in the world of crypto, most of the exchanges are unregulated, this means that a lot of price manipulation can happen, and we know based on forensics that collapsed exchanges (like Mt.Gox and QuadrigaCX) did have trading bots to manipulate price, commingled funds, and did other shemanigans.

 

We also know that Tether, the company behind the USDT stablecoin that is used on many of these unregulated exchanges as a placeholder for real U.S. dollars, have repeatedly been caught lying about their actual assets, and that they refuse to submit to an audit, refuse to reveal who their customers are, what commercial papers they hold, etc., and yet, they have issued tethers for almost $67 billion dollars, this is basically “printing money” as crypto-proponents love to critic, but with zero transparency.

 

If it turns out that Tether does not hold $67 billion dollars in assets (which to be honest, is highly unlikely, especially given that no bank wants to work with them), it’s anyone’s guess what will happen to the crypto market. I must confess, having watched the space for almost a decade, and seen all the scamming and manipulation that goes on, and still “number goes up”, I am not going to predict the downfall of crypto, but I have a really hard time seeing how the collapse of Tether would not trigger a major crash, it would be one of the largest financial scandals of all time, bigger than Bernie Madoff and up there with Enron, yet nobody knows Tether, it’s just one or two guys incorporated in Hong Kong (last I heard) and no actual office or known customers…

[uli65]

many people like cryptos, and many like to invest in the stock market bubble, the biggest ever in history, I guess the nasdaq is the right place for you

[watgate]

It's a tough call but if you listen to the experts they are saying we are in the last supercycle and there is going to be a tremendous run up in the price of bitcoin in the  next year. They are saying there will be little or no bitcoin on the market to buy and that miners and owners of bitcoin are hodling their bitcoin. So the decision is to hold on to bitcoin and hopefully bitcoin will have a tremendous run up in price at which point you can sell and make a killing. I my concern is that the central bankers will do anything to prevent a decentralized currency from taking hold because it would be a direct threat to their monopoly and their rigging of the financial markets. I don't know exactly what they can do, of course with some corrupt legislators, to limit or put a rein on bitcoin. Now that the big money and currency manipulators have entered the picture can they somehow rig the bitcoin market just like they rig the precious metals market with their paper contracts?

[fdsa]

@lkn your post is correct in almost everything, except this one little thing:

 

19 hours ago, lkn said:

A naive counterargument to the above might be “but after 10 years, and we are still up”. This only means that new money is still entering the system

- cryptocurrencies will always grow in price simply because of the infinite fiat money supply (thus new money entering the system)

[Sharp]

Bitcoin , Cryptography , blockchain technology ,smart contracts , digital currency, NFTs , layer ones ,layer twos  the future is bright people for those who embrace it..FIAT world will or collapse.????  

[Sharp]

#Bitcoin is changing the definition of money - New York Times