Man borrows $325000 USD to buy Bitcoin, but is he mad?
There is a rumour going round (and I have no more evidence), that someone has bought $325000 worth of Bitcoin in a mortgage against is house, but is he mad?
Everyone has an investment profile, for some people, like me, I quite like high risk, high profit investments (which basically means I’m pretty impatient). 99.999% of these, when it comes to Bitcoin are simply scams. As you’ll see from my evidence here.
This guy obviously has a lot of faith in Bitcoin and Cryptocurrency, but has he done the right thing?
For me personally, it sounds like a great idea, he says according to my sources that he’s going to sell when Bitcoin get to $10,000 per coin. Well that’s quite shocking, because they are at $1000 or so now. So if he gets a return like that he’ll be working away with 3.2 million.
What problems will he have?
- Liquidating the money, he’ll have to find some HUGE exchange to get dollars out for that amount, but maybe by then it will happen
- TAX and government intervention, I wonder if they’ll find a way to charge him for money laundering?
- Bitcoins could fail, although now I think there is little chance of that happening, especially since no one has yet managed to hack the blockchain
- The dollar could rally higher than Bitcoin price. So what he’s not factored in is what would happen if the Dollar rallies in price at the same speed as Bitcoin, this is called Inflation, so he might end up with 3.2 million, but because of inflation it’s still realistically only worth $325,000, because prices have increased to match…. or maybe not
What would I do?
I think for me I would invest in a number of Crypto currencies at once, spread the risk, just in case one of the moons (goes up in value). I have this set up at EOBOT, with my tiny home mining pool. I love the idea of buying Bitcoins and I’m doing the same thing, but on a much smaller scale with money that frankly I can afford to lose.
Only time will tell if he’s mad.
But so far, things are looking good.