Bank Interest VS Bitcoin profits

[Kakmakr]

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

[quake313]

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

What bank offers 10% interest? Please, I need to know this.

[MiladMax]

He could make more profit if he hold the coins for a few month more...

[Watari]

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

What bank offers 10% interest? Please, I need to know this.

lol, yes

[Zinkin]

He could make more profit if he hold the coins for a few month more...

that is right. I will buy and hold as the price will rise again.

[megynacuna]

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin. After bank fees and trading fees, he made a profit of about $10 000 in a year.

The best interest rate he could get back in January was about 10% per year. So his profit from bank interest would have been +/- $910 for 2016.

Even after Tax has been deducted for Capital Gains, he will still Net a profit of about $7000 for the year. He is a very happy chap now, and I got a expensive lunch out of this deal. ^smile^

#Disclaimer : These are calculations done by him, so I do not know how accurate they are. Just thought I would share it with you.

Would you risk about $10 000 now, to possibly copy his success? Those were very uncertain times, when he had to make that decision back then.

From what I observed from your friend's analysis he bought 20 bitcoins at $455 each that was 20*455=$9,100 , but from today's prices, 1 bitcoin=$1061 and so 20 Bitcoins today will be 20*1061=$21,220. Comparing the two circumstances (January 2016 and now) I don't think it'll be a wise decision to invest $21000 and hope to double it January 2018 because of the current pump. Take a lesson from your friend I guess if he still believed he could make a 100% profit next yer he would have sold his bitcoins to make profit.

[Josepino]

Bitcoin profits are much more than Bank profits. (about 30%-60% in my country).
I can not believe that bitcoin has hit over 1,000$ within 1 month. it's amazing, guys.
This is my most memorable month in the year of 2017.

[podyx]

That man will be in pain a few months from now.

He may be smiling now but just wait.

[maku]

I introduced a friend to bitcoin in 2016 and he bought 20 bitcoins at $455 somewhere in January 2016. He now sold all of them at $1005 per bitcoin.

Well I guess he can be happy at this time. It is huge gain, more that traditional banking, stocks or obligations could bring you.
But in the end he made a big mistake when he thought that $1005 price per BTC is anything close to final value of bitcoin.
If you don't need FIAT for your life expenses - you shouldn't sell your BTC. Ever.

[Roselop]

Ofcourse, bitcoin profits is much more than Bank profits, Guy.
If you buy 1 bitcoin at 800$ or 850$ in the first days of December, 2016 you can get a big profit (more 20%) within month.
the bank profit is about 4%-5%/ year maximum (it means 0.3%-0.41% per month). Bitcoin profit is more than 60 times bank profit.

[Watari]

where do you guys get those bank interests of over 3%??

my bank has like 0.5% right now ...

[Soros Shorts]

where do you guys get those bank interests of over 3%??

my bank has like 0.5% right now ...

His friend is probably not in the US. For example you can easitly find 8% deposit interest rates in crap currencies such as the IDR.

[ArdiPrabowo]

Bank interest in europa country, US and japan
majority under 1%/year is very low and not competitif if your use bank interest to investment
bank only use in saving and transaction

[Kakmakr]

where do you guys get those bank interests of over 3%??

my bank has like 0.5% right now ...

His friend is probably not in the US. For example you can easitly find 8% deposit interest rates in crap currencies such as the IDR.

Correct, and this is on a fixed deposit over 12 months. He cannot touch that money during that 12 month period. You do not have that contractual obligations with Bitcoin, because you can withdraw it, whenever you want and still get that kind of profits without penalties.

His motivation for selling : He considers $1000+ as the top end of the upward movement in the price. We might differ from his perspective, but he might just be correct for now. He also wants to play it safe. < Take some profit now, and re-invest when the price goes down > ^smile^

[bamboylee]

That man will be in pain a few months from now.

He may be smiling now but just wait.

Why would he. The price is rising too fast, the bubble may burst anytime and he will have opportunity to buy another set of bitcoins. Bag the 10K profit and re-invest. I think that is a smart move.

[quake313]

That man will be in pain a few months from now.

He may be smiling now but just wait.

Why would he. The price is rising too fast, the bubble may burst anytime and he will have opportunity to buy another set of bitcoins. Bag the 10K profit and re-invest. I think that is a smart move.

Here's a thought, this rally just started and the "crash" will settle over the old ATH.

[Kakmakr]

That man will be in pain a few months from now.

He may be smiling now but just wait.

Why would he. The price is rising too fast, the bubble may burst anytime and he will have opportunity to buy another set of bitcoins. Bag the 10K profit and re-invest. I think that is a smart move.

Exactly, If he cashed out some coins now, he would be able to show some good profits. If it crashed and it stays at these low levels, he might have to wait for 2 to 3 years to see a profit on his investment. The longer he waits to cash out, the lower his profit percentage in the end.

We do not know what the future will hold, so we can just go with what is happening now. He kept some bitcoins to capitalize on a Moon price. ^smile^

[Hyena]

That man will be in pain a few months from now.

He may be smiling now but just wait.

+1

We all know how this goes. Once the ATH is broken it's time for the next order of magnitude for the next ATH. It has always been like that.

edit:
It is smart to cash out when ahead and in debt to banksters. So pay back the debt in full but keep at least some of the earned profits in bitcoin because the party is just getting started. We're not even in the mainstream news yet!

[Zinkin]

That man will be in pain a few months from now.

He may be smiling now but just wait.

+1

We all know how this goes. Once the ATH is broken it's time for the next order of magnitude for the next ATH. It has always been like that.

edit:
It is smart to cash out when ahead and in debt to banksters. So pay back the debt in full but keep at least some of the earned profits in bitcoin because the party is just getting started. We're not even in the mainstream news yet!

A new ATH could be in the next 2 months.

[BrewMaster]

What bank offers 10% interest? Please, I need to know this.

a bank in a country that has an inflation rate of higher than 20%
i am guessing OP is from India, but i may be wrong.

where i live (a third world country) you can get 18% interest rate since the inflation rate doesn't fit in this comment
There are also some special offers for higher amount of money with rates as big as 25% annually.