Dafar (OP)
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December 06, 2013, 12:23:51 AM |
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I promised him I will return the money to him by the end of 2014 with an extra $100k (10% interest). It took me a lot of convincing but I somehow managed to convince him without telling him exactly what I would do with the money. He thinks it's for a start up. I did not tell him that I'm gonna throw it all into bitcoins because I'm not exactly sure he understands or knows about it too much. If he found out about the price volatility of bitcoins I really doubt he would let me invest. But I am pretty confident that the price will at least rise up above where it is now before it crashes (if it does crash). I really think it would at least go back to where it was (~$1240/btc) at its highest point once more before going down for good. That would at least be a nice ~$200k profit and I feel like it's almost guaranteed.
Which brings me to my questions...
1. Am I being really stupid and optimistic to think this way? How much of a chance/risk do you think it is for the price to not go up any higher in 2014? IMO, it almost seems guaranteed the price will at least hit $1200-$1300/btc sometime next year.... or is there a risk that I'm not aware of?
2. I have a coinbase account and it only lets me buy a max of 50 BTC at a time. Is there a place where I can buy as many as I want w/o any limits?
3. Will I even be able to buy $1mil worth of BTCs? Does it depend on who's selling right at the moment I'm trying to buy some? How does this work?
4. Will I have to pay taxes on capital gains? I don't wanna pay shit to the US gov, how would they know how much I made off BTCs?
I'm thinking of putting an automatic sell order right when BTCs hit $1500 in 2014.... is that too high or should I put a lower limit? I want to guarantee some profit before I get too greedy and potentially lose my dad's money. I figured if I sell at $1500 it would be a nice $400k profit for me, I could quit my job and chill in Miami and Ibiza for a year until I need money again.
Serious advice only please, I'm not fucking trolling
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ANX_Service
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December 06, 2013, 12:31:07 AM |
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Hi Dafar,
Well done with securing that arrangement with your father.
1. I (personally) do not think this is "stupid" concept. Note this is my opinion and does not reflect the views of ANX.HK. 2. With appropriate verification, we can offer you generous limits which would satisfy your requirements. 3. [I have sent you a private message] 4. I unfortunately do not specialize in US taxes, though we may have to cautious of the FATCA regime next year, for our US customers. Right now however there is no regulatory obligations on our behalf.
Cheers, Asia Nexgen - Your Bitcoin Connection ANX.HK
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proudhon
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December 06, 2013, 12:34:07 AM |
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Well, taking you at your word, I'll say this much, before you buy $1m worth of bitcoin with your dad's money (if you end up deciding to actually do this), you better be goddamn sure you know how to secure bitcoins.
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Bitcoin Fact: the price of bitcoin will not be greater than $70k for more than 25 consecutive days at any point in the rest of recorded human history.
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BitOrca
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December 06, 2013, 12:37:05 AM |
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Haha, if you are not trolling congrats on having the capital. HOWEVER don't just put it all in, buy slowly and even look into buying on here with trusted users, not to inflate the price. You don't want to lose more than you can afford to. If I were in your shoes, I wouldn't invest the million. Why not try at 100k, have you ever thought of getting into trading? Spend some on professional training to become a better trader. Also don't lie to your Dad about it, he has put trust in you for this startup, why not think of actually setting up a startup? Hell, you could even buy some btc in bulk and set up a site to sell it like bittylicious or even on here. A lot of people would love to be in your shoes, but not if you lose value. 1 million in BTC can very quickly see higher losses as well as profits. Think this through, take the advice of others and make your own decision. best of luck
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StevenS
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December 06, 2013, 12:40:57 AM |
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1. Am I being really stupid and optimistic to think this way? How much of a chance/risk do you think it is for the price to not go up any higher in 2014? IMO, it almost seems guaranteed the price will at least hit $1200-$1300/btc sometime next year.... or is there a risk that I'm not aware of?
There is one correct answer to this question: "Nobody knows." It's kind of like the stock market, and kind of like the currency exchange market, and nobody knows which direction those will go either. 3. Will I even be able to buy $1mil worth of BTCs? Does it depend on who's selling right at the moment I'm trying to buy some? How does this work?
Yes, it depends on who's selling, but many people on the exchanges have limit orders that will stay around until they are fulfilled or cancelled. When you place on order to buy, the exchange finds the lowest-priced orders that will meet your quantity. This means that when you buy a higher quantity, the price will be higher, because the lower-priced orders are "used up." 4. Will I have to pay taxes on capital gains? I don't wanna pay shit to the US gov, how would they know how much I made off BTCs?
Yes. If the IRS audits you, they can see your bank accounts, which presumably will show money coming in from an exchange. I'm thinking of putting an automatic sell order right when BTCs hit $1500 in 2014.... is that too high or should I put a lower limit?
See the answer to question number 1.
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t1000
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December 06, 2013, 12:41:49 AM |
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Hi Dafar, - Do not entrust your money with a single exchange. Use multiple exchanges.
- Do not keep unnecessarily high amount of funds on exchange.
- Do not buy all at once. Do not fly into the sell side. (As an investor I don't mind if you do.)
- Do not sell all at once. Do not fly into the buy side. (As an investor I hope you don't.)
- Do it in stages, and time it well, preferably at dips.
- Keep a reserve for buying in at flash crashes.
Best of luck
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Did you find my posts helpful? Did I say say something nice? Your generosity is much appreciate. BTC: 1G7chBLoYqGfdyfkrox53yDn6sS65PgFYk LTC: LiYeFdbv5oxin9S3Wmn4v84LuGZ9nsE4XZ
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robozombie
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December 06, 2013, 12:42:02 AM |
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Well, taking you at your word, I'll say this much, before you buy $1m worth of bitcoin with your dad's money (if you end up deciding to actually do this), you better be goddamn sure you know how to secure bitcoins.
Yes to that! You don't know what would happen if you lose those Bitcoins. What would you tell your dad? ![Shocked](https://bitcointalk.org/Smileys/default/shocked.gif) Better be cautious... I'd definitely find a secure way of putting them in a very safe place.
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EmberMike
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December 06, 2013, 12:43:45 AM |
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Man if only you had tried doing this 6 months ago, just think about what that million would be today. ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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Chang Hum
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December 06, 2013, 12:44:08 AM |
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spoilt bastard!
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Serge
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December 06, 2013, 12:46:20 AM |
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put in 100k and go chill in miami or ibiza for a year or better yet acquire some skills. come back year later to 100k x 10 with the rest of saved money which would be roughly 600-800k assuming more or less moderate spending during chilling ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif)
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p2pbucks
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December 06, 2013, 12:46:25 AM |
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![Grin](https://bitcointalk.org/Smileys/default/grin.gif) Before buying tons of BTC , it seems you need to know how to cold storage your bitcoin . BTW: 1 million USD invest in BTC is not a bad idea
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Dafar (OP)
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dafar consulting
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December 06, 2013, 12:48:25 AM |
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Hi Dafar,
Well done with securing that arrangement with your father.
1. I (personally) do not think this is "stupid" concept. Note this is my opinion and does not reflect the views of ANX.HK. 2. With appropriate verification, we can offer you generous limits which would satisfy your requirements. 3. [I have sent you a private message] 4. I unfortunately do not specialize in US taxes, though we may have to cautious of the FATCA regime next year, for our US customers. Right now however there is no regulatory obligations on our behalf.
Cheers, Asia Nexgen - Your Bitcoin Connection ANX.HK
Anyone know if this dude is legit? I feel like I'm being scammed. Well, taking you at your word, I'll say this much, before you buy $1m worth of bitcoin with your dad's money (if you end up deciding to actually do this), you better be goddamn sure you know how to secure bitcoins.
I currently have some BTCs in coinbase that I bought with my own money. Is it not secure? I still don't quite understand the concept of putting it in a "wallet" that resides in your harddrive.... I feel like that is more risky. What if the file accidentally gets deleted or my computer crashes? Haha, if you are not trolling congrats on having the capital. HOWEVER don't just put it all in, buy slowly and even look into buying on here with trusted users, not to inflate the price. You don't want to lose more than you can afford to. If I were in your shoes, I wouldn't invest the million. Why not try at 100k, have you ever thought of getting into trading? Spend some on professional training to become a better trader. Also don't lie to your Dad about it, he has put trust in you for this startup, why not think of actually setting up a startup? Hell, you could even buy some btc in bulk and set up a site to sell it like bittylicious or even on here. A lot of people would love to be in your shoes, but not if you lose value. 1 million in BTC can very quickly see higher losses as well as profits. Think this through, take the advice of others and make your own decision. best of luck I don't really want to day trade, like I said, I rather buy at the price it is now before it slowly starts going up..... not only is that lost profit but it would make it more likely that the price will go down. Right now I feel like it has to at least surpass where we already were. Of course no one knows but it's just my gut feeling. Why not invest in a startup? I have nothing in mind... no opportunities at all. BTC might be the only way I will "make it big" in life. I feel bad about lying to him but if I actually make a lot of profit I can tell him the truth and he will forgive me.
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BitcoinBarrel
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Fill Your Barrel with Bitcoins!
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December 06, 2013, 12:50:10 AM |
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Your dad will be very upset when he finds out his money was wasted on some new digital currency.... IMO now is not the time to buy when there is a lot of Hype and the price jumped nearly 10x in such a short amount of time.
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Soulfap
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December 06, 2013, 12:50:35 AM |
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Alright so, i'm not sure where i stand on this thread, but my spider-senses tells me you are an obvious troll. Mostly backed by my impression of how you seemingly toss $1 million around like it's salad, yet you say things like this: I could quit my job and chill in Miami and Ibiza for a year until I need money again.
Serious advice only please, I'm not fucking trolling
However, i'll give you the benefit of doubt and actually answer your questions to the best of my ability, just in case you're the real deal here. 1. Personally, i believe bitcoin could exceed your ambition of $1500/BTC easily next year. However, only time will tell. - There is an ever-pressing concern of political influence and potential bad news that could crush or limit bitcoin in the future. These facts should be of great concern when you're considering investing $1m 2. There are services out there who would take your offer seriously, and thus i propose you look for some more information regarding this. I'm not a specialist on investments of this magnitude, so i'd make sure i do proper research on this subject before even attempting to make contact with any site or third party. 3. Depending on where you want to spend your $million, there will be a long list of sell-orders waiting for you to purchase. If you were to use sites like Coinbase, Bitstamp or Mtgox, you'll have to expect the average price per bitcoin to be up to ~5% higher than the current price for those last few hundred bitcoins of your $1million purchase. An example: A few days ago i saw someone buy out 940BTC from Mtgox. This order ate up every sell-order from $1040 all the way up to $1070, thus driving the price up $30. I would consider buying in portions. Perhaps buy ~100BTC every hour for 10 hours or so? 4. You should make sure the government knows of your investment whenever you plan on cashing out (if ever, of course) - avoiding capital gains tax of this magnitude is serious trouble. - It is also the right thing to do, as with any other legal investment. A few last notes here. I would strongly recommend reading up on bitcoin some more. You seem like someone with an okay understanding of bitcoin, but i'm sure there is plenty you have let to discover and learn. Make sure you are confident in your investment before you decide to go on with this, and don't hesitate to ask questions on these forums, or other forums for that matter. - Personally, i would have perhaps waited for $1500-1600, as you say you intend, and then cash out for $1.1million (thus satisfying your deal with your father) - and keep the rest in bitcoin, if things still look good with the stance of bitcoin at the respective time. I sincerely hope you are not some troll wasting our time, but i'll give you the benefit of the doubt and wish you good luck, and make sure you do your research!
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msc
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December 06, 2013, 12:54:33 AM |
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4. Will I have to pay taxes on capital gains? I don't wanna pay shit to the US gov, how would they know how much I made off BTCs?
Yes, you have to pay capital gains on the profit. If you cash out through an exchange, they could report you to IRS, or your bank could report you if they think your transactions are suspicious.
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robozombie
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December 06, 2013, 12:55:38 AM |
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Oh, one more thing: STAY AWAY FROM SCAMMERS! Now that you've made public you've got lots of cash to buy BTCs, they'll come around you with outrageous claims/offers. If those offers/claims seem too good to be true, they're DEFINITELY TOO GOOD TO BE TRUE! ![Shocked](https://bitcointalk.org/Smileys/default/shocked.gif)
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takagari
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December 06, 2013, 01:00:25 AM |
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Storing a million on any exchange for selling is just stupid.
Figure out how to make a super secure offline wallet.
Get a safety deposit box, store a copy there, encrypt a second copy to all hell and secure it on some sort of data centre.
Than buy slowly and transfer to your offline wallet/wallets. I woudnlt entrust that much to any exchange lol
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Chang Hum
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December 06, 2013, 01:01:46 AM |
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Oh, one more thing: STAY AWAY FROM SCAMMERS! Now that you've made public you've got lots of cash to buy BTCs, they'll come around you with outrageous claims/offers. If those offers/claims seem too good to be true, they're DEFINITELY TOO GOOD TO BE TRUE! ![Shocked](https://bitcointalk.org/Smileys/default/shocked.gif) + 1 for security immediately create a cloud wallet and load your funds. Make sure you create an ultra strong password I'd be happy for you to send me the first half of this password by pm then I'd recommend you sending the other half of the password too ultralegitescrowman@gmail.com (wait 30 mins as I don't think he's set up this email yet). This way you know you're secured peer to peer in the spirit of Bitcoin itself.
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Kyune
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December 06, 2013, 01:02:10 AM |
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Well, taking you at your word, I'll say this much, before you buy $1m worth of bitcoin with your dad's money (if you end up deciding to actually do this), you better be goddamn sure you know how to secure bitcoins.
I currently have some BTCs in coinbase that I bought with my own money. Is it not secure? I still don't quite understand the concept of putting it in a "wallet" that resides in your harddrive.... I feel like that is more risky. What if the file accidentally gets deleted or my computer crashes? Taking you at your word...this won't end well. Even if the price of bitcoin does rise in 2014.
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BTC: 1K4VpdQXQhgmTmq68rbWhybvoRcyNHKyVP
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adamstgBit
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December 06, 2013, 01:03:42 AM |
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spoilt bastard!
Go fucking die spoiled bastard! FTFY lol this i'm so jealous...
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