One man's trash is another man's treasure. Don't discount the possibility of trash having any value just because you believe it should not. They do. While we all believe they should be zero ... it's currently above zero for now. If you know how to take advantage of it, you probably would try. If not, then it's just as well to keep whatever value you need in just bitcoin.
Of course.. no need to either fuck around with shitcoins nor talk about possible hopenings of them here... so go take those kinds of nonsense ponderings about the possibility of value in trash.. blah blah blah... somewhere else.
Oh yeah, I just found a can in that trash, and I could recycle it.. .. blah blah blah..
i.e... "subjective value is value too" blah blah blah..
We (royal of course) are not concerned about the truth of the matter asserted.... anything but bitcoin is shit, in case you were wondering.
#nohomoI remember seeing that video a while back... ... it is even funnier now.. upon watching it again...
He even told me to withdraw that 0.17 BTC from Kraken and keep it in a paper wallet, so that he won't be tempted to "play" with shitcoins again.
May I suggest a normal wallet like, say, Electrum. Then write on paper the seed phrase. I understand paper wallet also means private key written down but that can get confusing in the future and you might inadvertently use a different address format that is not native segwit.
Of course, done on an air gapped cold machine, if possible.
Yes, good idea, thanks. He's not very good with technical stuff, so I should keep things as simple as can be. A vanilla paper wallet (without a seed) can be dangerous. The seed is a human-readable version of the private key, so I should use that instead.
Yes... I understand that peeps are quite reluctant to spend
$150-ish whoops, they went up in price $200-ish for a hardware wallet, such as a Trezor Model T - and yeah.. I see that they are now claiming to support 1,200 shitcoins.. so that could end up causing too many temptations to hold onto shitcoins.. so kind of understandable, that. Maybe I am just confused by paper wallets and traumatized by some of my previous electrum experiences when I was trying to figure out if I could claim my bcash through electrum in 2017.. so surely sometimes experiential limitations might inform choices.. and even show my own needs to learn and experiment with other wallets to have some better knowledge and comforts... like wallets that allow for transacting through lightning network, too (more of a "me" thing rather than considering the situation of your kind of coiner friend).
By the way would be good to get your friend into DCA investing.. fucking powerful to have DCA investing.. and hardly even notice how powerful it tends to become. $20 a week or whatever.. or just lump sum with $80 per month to save on some fees..even though I am kind of more inclined towards weekly purchases.. and
Swan bitcoin would surely be good for that.. if the amounts are relatively small, then once a year or so, send from Swan to cold storage wallet... I know.. more involved, but still.. fuck the laziness of just ONLY sitting on BTC... and your friend has already shown that he needs something to keep him busy as long as he knows that the rules are
not to fuck around with selling, just accumulation and HODL only...
Yes.. I know that you are suggesting that your friend could have had 5 BTC over the past 5 years, but
the power of DCA shows that $20 per week over the past 5 years would have gotten the guy about 1.87BTC.. which would have been $5,220 invested.
I am going to presume that if we multiply by three to $60 per week, then maybe your friend could budget 3x higher than my $20 starting suggestion.. especially since he is more experienced, and he seems to potentially have a higher budget.
Over the past 5 years, $60 per week would have generated 12.25x in profits on an investment of $15,660 that would have added up to the accumulation of about 5.6 BTC.
Sure so, even if that $60 per week DCA method is not getting to the 30x returns that you are saying that he could have had gotten (presuming lump sum front-loading investing), it is still a very good return.. and somewhat passive.
Note: I am going to admit that lump sum investing can surely be better than DCA in terms of actual front-loading price performance, but you are saying that your friend is already doing a certain amount of front-end lump-summing with his $6k. Furthermore, if someone such as your friend is actually somewhat burnt out on the whole investing in "crypto" situation, he might be more able to swallow the medicine of practical investing (rather than gambling) with DCA-ing that is kind of more under the radar in terms of just ongoing investing of relatively small amounts that he should be able to afford without any major sacrifices in his expected ongoing lifestyle.
Thanks for this Jay, these are some great ideas for him to consider, and I will let him know. DCA is a good investment strategy, and DCA+Bitcoin is just awesome. Just thinking of the amount of profit one can achieve by only regularly contributing pocket change amounts really. I also liked the ease of use of the Swan app. This will surely make the process much easier than logging in to Kraken, setting up orders, etc. In fact, it sounds kind of good for me too. What's wrong with putting $50 per week or month in Bitcoin? Hell, even Bob does it! Many people consider $50 to be far too small to even bother investing in Bitcoin, and wait to accumulate larger chunks of fiat. I do that too. I've never transferred amounts less than $1000 to an exchange for buying BTC. The key word here is regularity. $50, or even $10, when converted to BTC regularly, say, every week or month, can lead to unbelievably large gains. It's so tempting...
About that video, yeah, it's funny. I made it by chopping clips from
a longer video of this guy talking about how he got scammed by Bitconnect. It's sad really, if you think about it. So many people falling for this "cryptocurrency shit". I guess greed is so strong that it can overwhelm logical thinking and drive people to do crazy things. I mean, just look at Bitcoin's performance over the years. What more could anyone want? How much better? But people, especially noobs, want an even faster way to reach "fuck-you" status, and then they get "fucked-up" by those scams. In a funny way, they did achieve a kind of "fuck-you" status, except they were the ones being fucked up.
My above mentioned friend can also be considered one of those people. He started with $6k, when 1 BTC = $1k-1.5k. He could have bought 4-5 BTC then. But he thought "it's too expensive" as usual, and played with shitcoins instead. Non-stop. For almost 5 years! Sure, he ended up with nearly 3x of his initial investment (from $6k to $16k), which sounds kind of OK. But to do this, he made countless buys/sells between dozens of shitcoins. His Kraken account once reached a 30-day volume of more than $1M. He even installed a PC+monitor in his bedroom (I wonder what his wife thought of this), just to be able to observe the charts 24/7. So much work for a measly 3x gain? If he had bought 5 BTC and had just forgotten about it (no work, no chart observing, no trying to catch the market, etc., just HoDLing), he would now have $160k which is around 27x of his initial investment. I think this is what he has now realised, and he just wants to withdraw his profits. At least he's keeping his initial investment ($6k) in BTC, just under 0.2 BTC, and he intends to HoDL it for many years he says.
The lesson learned here is that investing in Bitcoin requires patience, it's a slow process, not a get-rich-quick scheme. For me, an important element that empowered me to HoDL strong and not sell or do any other crazy shit, is understanding the tech. When one understands how Bitcoin works and what gives it its superiority over any other shitcoin out there, then it's much easier to keep HoDLing, even through tough times such as 2018-2019. No need to be a rocket scientist, there are features in Bitcoin that are so easy to understand, such as the concept of Halving. This is what made me purchase my first coins in late-2015. Because I knew that the upcoming 2016 Halving would drive the price up. It's simple supply-demand, no need to be an expert or anything, just common sense.
So, to sum things up, I'd say, if you have a big chunk of fiat, buy Bitcoin now. If not, do it the DCA way, as you eloquently described above. Either way is a winning strategy. I know some of us here are playing with shitcoins, and that's OK if they know what they're doing, or if the end target is BTC. But for those (like me) who want peace of mind, and don't want to be glued to a screen observing charts 24/7, Bitcoin is an almost sure bet, that will take its time, will have its ups and downs, its Saylors and its Elons, but will greatly reward us in the end, whatever that end may be for each one of us.
Poll
