I'm All In - Sold My House!

[TERA]

I don't think this is a good diversification strategy. Bitcoin is still so young that you shouldn't need to invest a fortune to get rich if it realizes its potential.

[GigaCoin]

Good luck, ur young and u can take risks.

I would tell u not to go all in, u have some decent amount of money try to diversify that. U can for example go 80% bitcoin and 20% in other investments if u really want to put most of ur money in bitcoin. Keep in mind that bitcoin has already been around for 5 years bull run still has life in it but the risks are higher now and rate of returns will be lesser and slower compared to the past. A 50% - 50% portfolio would be more ideal.

Of course its ur decision. Some went all in in the past and are millionaires now.

[Cassius]

Hi Tay,
I'd like to do a feature on this for BitScan magazine. Can you PM me if you're interested?
Thanks!

[raid_n]

It only looks like a gamble if you don't understand the fundamentals.

I am by no means a bear and believe that bitcoin has the potential to become something huge.
But I feel that it is important to counter-balance these insane claims.

Clearly you do not understand the fundamentals, not one bit.
Bitcoin is two things. It is a protocol for securely transferring ownership of bitcoins and it is an abstract representation of value.
The first part is formally provable which is why we place trust in bitcoin.
The second part is a perception of its utility now and in the future.
Bitcoin's value fluctuates so much because of the uncertainty about the future outcome.
It is highly arrogant to believe that only you can see with certainty how bitcoin will succeed and everyone else is oblivious to the technological significance. If it were that clear that bitcoin will succeed the price would have quickly converged on what it should be in the future.

There is the very real possibility of a bitcoin fork or an entirely different project to ultimately succeed.
Look at the Linux world. Can you say with certainty that only one distro is "the one"?
You are making projections into the future and as such they inherently are uncertain. To call this anything but a gamble is a fallacy.
The real question that one should ask is what are the odds.
I personally believe them to be about 50%

In my eyes OP is too focused on the potential value. This is a sign of greed and that rarely leads to great decisions

[Ibian]

It only looks like a gamble if you don't understand the fundamentals.

I am by no means a bear and believe that bitcoin has the potential to become something huge.
But I feel that it is important to counter-balance these insane claims.

Clearly you do not understand the fundamentals, not one bit.
Bitcoin is two things. It is a protocol for securely transferring ownership of bitcoins and it is an abstract representation of value.
The first part is formally provable which is why we place trust in bitcoin.
The second part is a perception of its utility now and in the future.
Bitcoin's value fluctuates so much because of the uncertainty about the future outcome.
It is highly arrogant to believe that only you can see with certainty how bitcoin will succeed and everyone else is oblivious to the technological significance. If it were that clear that bitcoin will succeed the price would have quickly converged on what it should be in the future.

There is the very real possibility of a bitcoin fork or an entirely different project to ultimately succeed.
Look at the Linux world. Can you say with certainty that only one distro is "the one"?
You are making projections into the future and as such they inherently are uncertain. To call this anything but a gamble is a fallacy.
The real question that one should ask is what are the odds.
I personally believe them to be about 50%

In my eyes OP is too focused on the potential value. This is a sign of greed and that rarely leads to great decisions

Greed is one of the fundamentals. It's why miners mine. It's why investors invest. It's why traders trade. And it is why we won't see a fork or a 51%.

[raid_n]

Greed is one of the fundamentals. It's why miners mine. It's why investors invest. It's why traders trade. And it is why we won't see a fork or a 51%.

[edit] I think you didn't understand what I meant by forks. Every altcoin that is based on the bitcoin client is a fork. I didn't mean forking of the bitcoin blockchain (we could debate on whether the continuation of a fork of the blockchain should also be called an altcoin)

Exponential growth and the S-curve. It needs to be sustained to work.
Bitcoin has aspects of a pyramid scheme. By definition if it succeeds then those that move in last are the ones that lose/profit the least.
All you need is some alt that offers enough incentive to gain strong traction and hold it.
If the profits there are higher than in bitcoin your greed comes to bite you.

Just a hypothetical example: ZeroCoin offers better privacy and the Bitcoin devs can't / won't implement a zero knowledge proof for bitcoin
For some reason people are incentivized to desperately want that added privacy (taxes, repression, you get the idea).
All it really takes is for an alt to be as widely used/accepted to become a real danger.

I personally believe that before that happens the protocol would be adapted. But like I said this is predicting the future and therefore a gamble

[Ibian]

Alts are already priced in, so big deal there. Facebook stocks have aspects of a pyramid scheme. This has been debated far too many times and is a boring argument. And the fiat economy is a ponzi.

[knightcoin]

Pehaps OP went all-in because his believes that bitcoin is the fact a new model to build finance systems, not excacly because greed only ...

Hope he is rigth, hope ...

"we're building a house on the cliff" Matthew 7.24

Water Symbolism
http://youtu.be/BT1Za7dHxmM

OP: Dream is important, but dont let dreams takes you complete out of reality, I think in one year time is fair enougth have check, check before go all-in. Wish you lucky  

[Xenophis]

I will be waiting for the next ATH when this article / sale will resurface and make headlines. Not a bad time to take the plunge into BTC, good luck!

[koryu]

whatever will happen, this thread will be up'd again.

i wouldnt be surprised if 1 btc will be 10000$ but i also wouldnt be surprised if 1 btc will be 10$ again.
but i would be surprised if there were no decentralized currency in 10 years.

good luck

[knightcoin]

whatever will happen, this thread will be up'd again.

i wouldnt be surprised if 1 btc will be 10000$ but i also wouldnt be surprised if 1 btc will be 10$ again.
but i would be surprised if there were no decentralized currency in 10 years.

good luck

+000 or 000

philosophizing with my noodles (1010101001010 ) lol ...zeropoint of crypto maths ...  depends of how fast its converge to central point, if you decide that there is a central point ...

[sgbett]

Do remember to come back in three years time and post about how lucky this guy was.

totally different scenario to the early adopters in many ways....

....not least of all that you or I could have become near millionaires by investing a small amount of capital. As it turns out, you invested an absolute pittance and I invested jackshit/spent all my single digit Bitcoins on Silk Road.

This guy is investing a small fortune. Totally different fkn ball game at a totally different phase of Bitcoins development. Can you really say that we aren't yet going to test the $266 April 2013 high? I doubt it, but with Bitcoin anything is possible so I wouldn't be writing that off.

Bitcoin is overblown. Simple as that. Hyper-inflated value derived from from a speculative mania based entirely upon hoarding, restricted supply, and lack of market liquidity. Reverse any of these factors (such as having around 500K stolen coins looking to convert themselves into USD and Bitcoin could easily go in the opposite extreme.

Bitcoin might go to $5K within the next 18 months. But it also may just hit the $200s, or even less depending on how some totally unpredictable events happen to play out. As they say, don't go putting yer house on it.

You are a slave to your own assumptions. You constantly talk in absolute terms "small amount of capital", "small fortune" ... by who's standards? What that $300k would mean to you in your personal position, isn't the same as what it would mean to other people.
. How do you know what this guys circumstances are, I am fairly sure from the way the story was phrased this house was *spare*. So why is he "out of his mind" exactly?

Until you can see the world from other people's points of view you are about the least qualified person on here to make judgements about anything. You are hamstrung by your own belief that the way you see the world is the way it is.


I would have thought that someone who spent so much money on silk road would have a deeper understanding of the essential nature of things and the role of their own perception in understanding the universe around them.

[MatTheCat]

You are a slave to your own assumptions......

Ahem.

Will have to stop you right there and remind you that the OP stated that he was 'all-in'.

'All-in' to me, sounds like every spare bit of capital that he has. Wouldn't you agree?

[Paashaas]

Do remember to come back in three years time and post about how lucky this guy was.

totally different scenario to the early adopters in many ways....

....not least of all that you or I could have become near millionaires by investing a small amount of capital. As it turns out, you invested an absolute pittance and I invested jackshit/spent all my single digit Bitcoins on Silk Road.

This guy is investing a small fortune. Totally different fkn ball game at a totally different phase of Bitcoins development. Can you really say that we aren't yet going to test the $266 April 2013 high? I doubt it, but with Bitcoin anything is possible so I wouldn't be writing that off.

Bitcoin is overblown. Simple as that. Hyper-inflated value derived from from a speculative mania based entirely upon hoarding, restricted supply, and lack of market liquidity. Reverse any of these factors (such as having around 500K stolen coins looking to convert themselves into USD and Bitcoin could easily go in the opposite extreme.

Bitcoin might go to $5K within the next 18 months. But it also may just hit the $200s, or even less depending on how some totally unpredictable events happen to play out. As they say, don't go putting yer house on it.

Again one of those typical guy who thinks that Bitcoin will not grow and stays where is stays from now. Very short thinking, totally no clue how technology rolls out.

[Vigil]

There are obviously risks with Bitcoin, I just don't think the risks are as great as some of you would like to pretend they are in the name of being on the safe side.

[sgbett]

You are a slave to your own assumptions......

Ahem.

Will have to stop you right there and remind you that the OP stated that he was 'all-in'.

'All-in' to me, sounds like every spare bit of capital that he has. Wouldn't you agree?

Sure, I'll agree, because whats most important is that you are right. So long as you are right, who gives a damn about anything else. 

[kkaspar]

I hope you didn't like the house very much and you own another place to live. It would be stupid gamble if you actually sold your home and moved into an rental, just to gamble with bitcoins. At the current situation, it would make more sense to play the money at the roulette table, since probability tends to lean more and more to the bitcoin price dropping.
I would recommend to sell your bitcoins now and buy back when there is more certainty that the price will actually rise.

[gizmoh]

Just HODL ! You are going to be rich !

^^ That's the mantra of the bitcoin cultists!

There will be blood! ( or champagne  )

[st4nl3y]

Just HODL ! You are going to be rich !

MagicalTux would say... more or less

[Dragonkiller]

I hope you didn't like the house very much and you own another place to live. It would be stupid gamble if you actually sold your home and moved into an rental, just to gamble with bitcoins. At the current situation, it would make more sense to play the money at the roulette table, since probability tends to lean more and more to the bitcoin price dropping.
I would recommend to sell your bitcoins now and buy back when there is more certainty that the price will actually rise.

Idiot.