Investing what you CAN'T afford to lose crew

[empoweoqwj]

Investing borrowed money in highly risky things like BTC is why the suicide prevention hotline post on reddit wasn't stupid. I'm serious. There are people losing their life savings and more(!), esp. when they overreact during a correction. I hope things work out, but really, don't invest more than you can afford to lose.

If you overreact like that during a correction you shouldn't be invested in bitcoins at all. Seriously, look at the graphs, corrections are always happening. If you didn't expect them when you bought, you hadn't done any research whatsoever

[2tights]

I'm all in on fiat debt and bitcoin holding.  Inflation versus deflation is the theory, hope it works out.

What are your plans for the best case scenario and what are your plans for the worst case?

[SilverandBitcoins]

As someone who sometimes goes overboard buying crypto currencies, I say hedging is not a bad idea.  Maybe buy a small amount of gold, or silver - it's kind of cheap right now.  Keep, or grab a little cash - that way if BTC totally shitz the bed, you will still have something to show for your efforts, and you won't need the Redit hotline.

[Dafar]

As someone who sometimes goes overboard buying crypto currencies, I say hedging is not a bad idea.  Maybe buy a small amount of gold, or silver - it's kind of cheap right now.  Keep, or grab a little cash - that way if BTC totally shitz the bed, you will still have something to show for your efforts, and you won't need the Redit hotline.

I'm more likely to lose money in gold than bitcoin

[empoweoqwj]

As someone who sometimes goes overboard buying crypto currencies, I say hedging is not a bad idea.  Maybe buy a small amount of gold, or silver - it's kind of cheap right now.  Keep, or grab a little cash - that way if BTC totally shitz the bed, you will still have something to show for your efforts, and you won't need the Redit hotline.

Like anything, you can't tell if gold / silver is cheap until you know the price tomorrow and next month.

But sure, diversification isn't a bad thing. Just had to diversify when btc goes up in value from $20 to $800 in a year

[mindfulmojo]

Right now, silver is at about the cost of production, so I consider it a good buy.

If you think about it, bitcoin is a good buy for the same reason... 

Costs more to mine it (for most people), than it's actually worth. 

[zSprawl]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

[empoweoqwj]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Totally agree about not living on credit card debt. Its horrendous, especially if you get to the day when you can't pay it back. Been there once, never again.

[Kungfucheez]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot. The people telling you never to invest what you can't afford to lose are just looking out for you is all and just don't want to see you suffer if things don't turn out the way you want them to.

[empoweoqwj]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot

When I was in credit card debt about 10 years ago I used to wake up every morning feeling sick. Its just not worth it

[Dafar]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

About $2400 of my debt is on credit card and I'm not worried about it... I can pay that off pretty easily in the coming months. I may be paying some interest for keeping a credit card balance but I will hopefully make that up with bitcoin where a little interest will be insignificant. If I pay it all off now and miss out on a sharp rise in bitcoin price, I will just look at that as missed opportunity cost.

Everything should be based on ROI.  There's no point in putting money into Bitcoin.  To even see a 10x return on BTC then Bitcoin would have to hit $100 billion market cap ($100 billion is bigger than the monetary circulation of most countries).  Risking $20K on the bet your investment might become $200K is way too high risk, imho.

 That $20K could be spent on 40 start ups and at least one would probably make you a million on paper.



The best coins to invest into are the startups with potential, even if they are obscure.  NxT was sketchy as hell and everyone screamed scam and yet it turned out to be legit and the chance investors who put in $100s each became paper millionaires overnight.   Granted NxT will probably be dead before anyone pulls out $1 million but they still made a good ROI on that coin (putting in $100 and pulling out $100K worth in BTC is a pretty darn good ROI).

I don't get this logic at all... you're saying I can invest $500 in 40 startups and one of them will turn my $500 into a million $? Are you insane?

Or are you talking about creating my own startup with that money? Yeah because I just have so many great ideas...

[happygeorge]

Up-too-late metaphysical question: Is it possible to invest what you can't afford to lose? Or does the act of investing something mean, by nature, that we can afford to "lose" it?

On a more serious note: If you are "invested" in bitcoin - in its meaning, its value, its possibility, then you cannot lose. Even if the value of your investment goes down, the act of investing in something meaningful is in fact a win.

I think this is the BEST answer to the OP's question... and I am quite surprised that no-one else seems to realize that there is a FUNDAMENTAL nature to Bitcoin's purpose way beyond it's potential $$$ return!

INVEST EVERYTHING! What is PEACE worth?  What is an honest, transparent, fair  VALUE-SYSTEM (money-system) worth?  it is measurable is LIVES not in $$$!

Bitcoin has the potential to SAVE LIVES!  So that's it!

I stumbled on this video a few weeks ago.. I think this is the HEART and PURPOSE of Bitcoin... if you happen to gain some $$$ along the way... that is GREAT, but don't make it about that alone... you'll feel ENERGIZED by your investment if you realize, and you will not be paranoid about the potential "risks" and "loses"

https://www.youtube.com/watch?v=G6qTgOto0mU

[whtchocla7e]

Investing something you can't afford to lose is one thing.

Investing something you don't have is another. How exactly does that work? Debt on one hand, uncertainty on the other. What a great combination..

[worldtreasurefinders]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot. The people telling you never to invest what you can't afford to lose are just looking out for you is all and just don't want to see you suffer if things don't turn out the way you want them to.

In March of '13 I got a side job that paid me $2800.  I had a credit card with a balance of about $2500.  I was going to pay off my credit card with that money, but instead I bought BTC at $40 each.  I don't consider myself an idiot for making that move.

[Kungfucheez]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot. The people telling you never to invest what you can't afford to lose are just looking out for you is all and just don't want to see you suffer if things don't turn out the way you want them to.

In March of '13 I got a side job that paid me $2800.  I had a credit card with a balance of about $2500.  I was going to pay off my credit card with that money, but instead I bought BTC at $40 each.  I don't consider myself an idiot for making that move.

Good for you

How does that relate to the OP

[Dafar]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot. The people telling you never to invest what you can't afford to lose are just looking out for you is all and just don't want to see you suffer if things don't turn out the way you want them to.

In March of '13 I got a side job that paid me $2800.  I had a credit card with a balance of about $2500.  I was going to pay off my credit card with that money, but instead I bought BTC at $40 each.  I don't consider myself an idiot for making that move.

Good for you

How does that relate to the OP

If we even see half the growth of last year, then I am definitely making the right choice.

As said in this post:

A lot of people will tell you that you are making a horrible mistake, and those same people will say that you were just lucky if your decision turns at to work huge in your favor.   If you talk to a lot of financially successful people, many of them will tell you that they made a lot of good and bad financial moves in their life, but there were 1 or 2 big risks that they took that actually paid off (many by luck) and led to where they are at today.

I personally have made a few of these moves, and it has changed my life dramatically.  I applaud your risk, but I do think you should hedge some of it, and pull back some profits when you can, and try and just pay off the debt that you owe.   Living debt free, is the best feeling in the world.

[billyjoeallen]

Pay off your debt... living on credit is stupid and you end up spending more than if you budgeted accordingly. Basically if you show some freaking restraint, you can get more for your dollar/bitcoin rather than paying it in interest to "the man".

Listen to this man. Pay off your debts before you start investing. Don't be an idiot. The people telling you never to invest what you can't afford to lose are just looking out for you is all and just don't want to see you suffer if things don't turn out the way you want them to.

In March of '13 I got a side job that paid me $2800.  I had a credit card with a balance of about $2500.  I was going to pay off my credit card with that money, but instead I bought BTC at $40 each.  I don't consider myself an idiot for making that move.

Good for you

How does that relate to the OP

uh, bitcoin went up 50X or 5000% in 2013. if we see growth even 1/10th of last year, your going to do very very well.

If we even see half the growth of last year, then I am definitely making the right choice.

As said in this post:

A lot of people will tell you that you are making a horrible mistake, and those same people will say that you were just lucky if your decision turns at to work huge in your favor.   If you talk to a lot of financially successful people, many of them will tell you that they made a lot of good and bad financial moves in their life, but there were 1 or 2 big risks that they took that actually paid off (many by luck) and led to where they are at today.

I personally have made a few of these moves, and it has changed my life dramatically.  I applaud your risk, but I do think you should hedge some of it, and pull back some profits when you can, and try and just pay off the debt that you owe.   Living debt free, is the best feeling in the world.

[Kungfucheez]

lovely

But your still making an assumption. That's not advise, that's telling people your opinion.

"If you talk to a lot of financially successful people, many of them will tell you that they made a lot of good and bad financial moves in their life, but there were 1 or 2 big risks that they took that actually paid off (many by luck) and led to where they are at today."

And there you have it.

[Dafar]

Maybe I spoke too soon and jinxed my position way too much? I'm actually nervous right now with Ghash.io getting close to having majority hash power and all the FUD that's being spread around. Hold me guys   

[retrend]

I'm all in on fiat debt and bitcoin holding.  Inflation versus deflation is the theory, hope it works out.

What are your plans for the best case scenario and what are your plans for the worst case?

Best case is to sell them for $10000 each in the next 24 months and buy a house in Spain.  I'm not expecting anything like the 5000% growth of previous years though.

Worst case is I lose all my holdings to a hacker or some such and have to work for half a year to pay it off.  I am also quite wary that bitcoins will be overtaken by a superior altcoin, but I think the more likely proposition is that bitcoins usability problems will be overcome by a services running on top of it.  If this does happen it would maybe take me a bit less time to pay off my debts, as I would get a % of my money back from selling them before $0.

I don't see being in debt up to my limit being a real problem due to the way the value of the £ is being eroded by QE.