Like most people, I have wished to one day become financially free. Not just able to get by and be happy but also to have enough that I can make whatever financial decisions in a moment's notice while still being able to send my child to college. I haven't yet had such a dream because I... A) was never filthy rich before, B) I am a hard worker at my job and mostly enjoy doing what I do, and 3) always thinking about being filthy rich does not repeat in my head every day.
Considering how unsaturated the bitcoin market is today, there is still many of the world's working class and wealthy corporations not yet vested into bitcoin. But once they do, we very well may see $10,000 per BTC... $100,000 per BTC... and yes, even...
per BTC!!!
This is according to the swiss-based bitcoin wallet CEO of Xapo who has predicted today that in 10 years we can expect to see one bitcoin to be worth that much! :)
HOWEVER, you would have to think at the negative impacts that would make to cryptocurrency trading:
- one satoshi would be worth $0.01. That means that if you spent $50 of your paycheck to invest into cryptocurrency, you would only be able to afford a few alt coins with it. Don't even dream about buying a STEEM coin!
- think about all of the pumps and dumps that will occur.
- a bad decision on a 1 BTC trade can cost you your house, your dog, and your marriage!
OUCH!!!
The hardest part of a crypto-windfall is deciding at what point you divest and having some type of plan for doing so.
True story - I bought several thousand ETH in the ICO for next to nothing. Sold them all at about $12 to buy STEEM and other investments. The decision was considered and rational: I had booked an excellent ROI, the ETC fork had just happened and the future of ETH was in doubt and most importantly - I could no longer see a compelling reason to stay invested in a platform that is not seeing significant adoption and is rapidly becoming irrelevant.
Despite the 100x bump in wealth, had I hodl, six months later I would have been a millionaire.
BTC will go to $100k in <5 years. Lesson learned from ETH experience: I will sell 20% at $10k/BTC, 20% at $50k/BTC and 20% at $100k/BTC. The proceeds will go in to a variety of traditional investments (debt, equities, metals etc.) for diversification and income. At this point the capital should be earning enough income to pay the bills.
As for the 40% left over, who knows. Some for the kids/grandkids, some for fun, some for reinvestment, some for holding to $1M/BTC.
The point is to have a plan for when, not if, your crypto wealth shoots up 100x. Cause the train has left the station and everyone currently on board is going to be wealthy. Those that thrive with the wealth are the ones with a plan.
Wow. That sux. :( Im glad that you are moving on and not feeling too depressed about making an early eth sale.
Definitely worth the risk to have some coins tucked a way for a distant day in the possiblenfuture :)
I think the bigger kixker would not be cryptos failing completely...but having known of the huge upside potential and having resisted to make at least a few long term plays!
Steem On!
Agreed. Right now it's not a bad idea to trade cryptos because if you lose a bit trading altcoins, the appreciation of BTC is a decent safety net.
Agreed!
:)
Steem On!
Your article caught my attention because I have recently spent time thinking about what it would be like to be 100X more wealthy...
Specifically, I conjectured on steem going to $100. I don't see this as being beyond the realm of possibilites. A number of altcoins have broken through the $100 milepost; Ether, Zcash, Gnosis, Dash, for example. They all have different stories than Steem, but the only point I'm making is that $100/token is not impossible for an altcoin like steem which has a very big, active community, open source and many other edges over those $100 tokens.
While having $100,000 after taxes etc. sounds great, in reality it is not a ticket to financial paradise. If I'm frugal, I could buy a car, do a little traveling and have a nice savings account.
I'm 68 so health insurance is expensive and a stint in the hospital for an illness could wipe out much of the $100,000.
Finally, I do think it is wise to envision having a great deal of wealth because studies have shown that thinking about something helps in making it become a reality. I plan my tax returns, how much to save, where I want to keep it and whether I would want to continue with Steemit if there was a windfall profit. Who, just last year, thought Bitcoin would hit $2300 by this June?
Allow me allay some of your fears...
Even if Bicoin Core staunchly sticks to haveing the Satoshi as the smallest unit, times will change. There will be inventions like Shapeshift's Prism where you can manage an altcoin portfolio without actually owning the coins. It would be trivial to create units smaller than the Satoshi for trading small amounts of Bitcoin via smart contracts.
Indeed there will be zillions of P&Ds as there have been all along even in the traditional stocks and bonds arena for centuries. By all means watch out for P&Ds, but it's like dog feces; you watch where you step but you don't make avoiding it a big deal.
Good luck in your financial life! Let's hope Steem goes to the moon...Or how about even to Mars!?
lol! I hear you. Only time can tell what happens how cryptocurrencies evolve. Steemit is a good platform and I welcome whatever direction it takes as long as it remains its focus on the users: us. I keep hearing that we're still in the early post pubescent stage of crypto and it excites me to no end. :)
To me, "early post pubescent stage of crypto" is way off; more like it is embryonic! Ask 50 people if they ever heard of Bitcoin, the grocer, drug store clerk, cab driver, cousins,etc. and see if anyone ever heard of it . Then subtract the ones who really didn't but did not want to sound dumb. I've done it and am amazed at how un-mainstream cryptocurrency really is. And we are not talking the more obscure altcoins either, but Bitcoin the leader.
I'm really excited too! Spend most of my time at it. It is already a vast world where no-one knows it all. The trick, as I see it, will be to find your niche in the cryptocurrency ecosphere and mine it (pun intended) to your advantage.
Buy a few and pull it offline! I am going to attempt to do some crypto trading with money from my etrade account. I will post an update on what that is like! lol
Its not a bad idea to trade altcoins in this current market. Good luck, be smart about it, and have fun!