My Retired Uncle's Gratuity Invested on Bitcoin

[348Judah]

My Retired Uncle's Gratuity Invested on Bitcoin

The Introduction

I see it a great opportunity for me to make impact in bringing people to know and understand the benefits of bitcoin from fiat and I'd thought about how to get started not until i realize the need to begin with my household, i know the benefits and risk involved in bitcoin investment just with my little experience in it, last weekend was my Uncle's retirement party as a Civil Servant retired from the Federal Civil Service Commission (FCSC), then i remember i could engage on a conversation with him considering our level of relationship and his trust in me.

My First Step

I went straight to him after the whole events when calmness was restored in his privacy, that i have a question i will like to ask him but shouldn't take it an insult on his personality because I'd never take my relationship with him for granted, and i asked sir, what is your plan and next move after your retirement? he looked at me and sighed with a deep thought nodding his head, he said nothing until after about 20 seconds before he responded and said "I don't even know what's good for me right now cousin!" but all i know is that I've been given my gratuity fund the government could have hold down against me.

His Plan

He further explained to me that his only plan with his gratuity is to save it up in the bank on a fix deposit and when his pension arrives, they will be adding an incentive from the fix deposit to his monthly pension and he will be using them all together for his basic daily needs, then here comes my opinion as an advice for him and he admitted i should go ahead, i told him i have three basic plans i would like him to take from me over his retirement, i advised he should divide his gratuity fund into three segments, and then i will expose him to how he will be making a good return instead of spending from it.

My Advise

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin, then i begin to discuss with him about bitcoin and how he can invest in it instead of having his gratuity with bank, i took time to explain to him many reasons why he needs to invest in bitcoin, i went through some search on the forum for related topics about bitcoin, and i clarified him the differences bitcoin has from other cryptocurrencies.

I used my experience as well in explaining to him and gave him some online materials to read about bitcoin investment, he finally agreed, come into symphony with me and asked me to give him some time to think about it, but to my greatest surprise he called me the third day to say all my ideas were all accepted, that he related everything we discussed with a family friend after his second thoughts over it and all the outcome he concluded about it was a good and welcome idea, he told me he has heard about bitcoin before now but don't know anything regarding it, sometimes he sees the billboard or handbills on bitcoin and heard news about bitcoin, but all that never draw his interest in knowing better about it nor give a try, then i explained to him about bitcoin, how to acquire it, differences between centralized and decentralized exchanges, bitcoin price speculation, what volatility means, advantage of digital currency (bitcoin) over fiat or CBDC, and introduced him to bitcointalk.org forum to know more about bitcoin from the community.

 I also explained the types of wallets and recommended electrum wallet for him and asked him to safeguard his keys away from everyone including me, right now he has invested in bitcoin taking the current advantage of the dip in bitcoin price and set in with the exact 40% from his gratuity fund while other project plans where in progress just as advised.

My Motivation

There's a slogan that says charity begins at home, if you're thinking about seing bitcoin adoption a global responsibility then it begins with you right from where you are.

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[Upgrade00]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin,

It's always great to teach someone about Bitcoin, as they have the opportunity to get interested in it and understand its utilities.
They need to also be aware of the risks involved, not just in Bitcoin investment, but also the other investment plans; There's more to agriculture than understanding of seasons, and a roadside bar comes with a lot of logistics which you need to consider.

Another point to note, is the calculation sums up to 100%, which is the entire gratuity. So, your uncle is investing his entire stash into high risk assets, which has potential for high returns, but also the risk of losses.P.S, I'm not shitting on your ideas, they can possibly be profitable overtime, but it would be wise to do your due diligence in research on all the suggested investment ideas and draw up an investment plan over a period of time, rather than going all in.
You should take this more serious if he does not have more savings besides the newly gotten gratuity.

[Lucius]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin, then i begin to discuss with him about bitcoin and how he can invest in it instead of having his gratuity with bank, i took time to explain to him many reasons why he needs to invest in bitcoin, i went through some search on the forum for related topics about bitcoin, and i clarified him the differences bitcoin has from other cryptocurrencies.

It's up to you if you think it's good to share financial advice with family members, but no matter how much we believe in Bitcoin, I would still be careful about advising someone to invest 40% of their money in something as volatile as Bitcoin. The way you wrote it, it seems as if there is an obligation for people to invest in Bitcoin, and we all know very well that this is not the case, and people should first understand what it is about, and only then invest in something.

I also explained the types of wallets and recommended electrum wallet for him and asked him to safeguard his keys away from everyone including me, right now he has invested in bitcoin taking the current advantage of the dip in bitcoin price and set in with the exact 40% from his gratuity fund while other project plans where in progress just as advised.

I got the impression that it is a large sum of money, and then Electrum is a bad choice unless it is set up as cold storage. A hardware wallet would be a much better choice because it provides a much better level of security than desktop hot wallets.

[jakelyson]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin, then i begin to discuss with him about bitcoin and how he can invest in it instead of having his gratuity with bank, i took time to explain to him many reasons why he needs to invest in bitcoin, i went through some search on the forum for related topics about bitcoin, and i clarified him the differences bitcoin has from other cryptocurrencies.

It's up to you if you think it's good to share financial advice with family members, but no matter how much we believe in Bitcoin, I would still be careful about advising someone to invest 40% of their money in something as volatile as Bitcoin. The way you wrote it, it seems as if there is an obligation for people to invest in Bitcoin, and we all know very well that this is not the case, and people should first understand what it is about, and only then invest in something.

I agree with this. I can introduce and teach my family members about bitcoin. Maybe give them the positive and negative point of owning bitcoin. I will not give them financial advises though. We do not know how people will react to losses so giving them financial advise on something that we know is very volatile can backfire to us. It may ruin the relationship with them if they cannot take the losses when bitcoin price goes down.

If they understand bitcoin and they already know how to protect their assets, then they can choose on their own to invest or not. In understand, I mean the bitcoin as the technology not the financial asset that others are pushing. The way I see it, your uncle is already old and most old people are not tech savvy and sometimes they can be easily scammed. So it is vital that he understand and know by heart how to properly store and protect his bitcoins. I hope you discussed it thoroughly to him the utmost important of security here since he is the only one who can protect it.

[kamvreto]

~snip~If they understand bitcoin and they already know how to protect their assets, then they can choose on their own to invest or not. In understand, I mean the bitcoin as the technology not the financial asset that others are pushing. The way I see it, your uncle is already old and most old people are not tech savvy and sometimes they can be easily scammed. So it is vital that he understand and know by heart how to properly store and protect his bitcoins. I hope you discussed it thoroughly to him the utmost important of security here since he is the only one who can protect it.

Broadly speaking we have to explain about bitcoin security, about how to access and store the private key. It needs a very detailed explanation so that the uncle understands and applies it and keeps the private key safely. the type of wallet used must also be safe, the recommended electrum is not bad, but there are other wallet options such as hardware wallet ledger or trezor.

[noormcs5]

~snip~If they understand bitcoin and they already know how to protect their assets, then they can choose on their own to invest or not. In understand, I mean the bitcoin as the technology not the financial asset that others are pushing. The way I see it, your uncle is already old and most old people are not tech savvy and sometimes they can be easily scammed. So it is vital that he understand and know by heart how to properly store and protect his bitcoins. I hope you discussed it thoroughly to him the utmost important of security here since he is the only one who can protect it.

Broadly speaking we have to explain about bitcoin security, about how to access and store the private key. It needs a very detailed explanation so that the uncle understands and applies it and keeps the private key safely. the type of wallet used must also be safe, the recommended electrum is not bad, but there are other wallet options such as hardware wallet ledger or trezor.

Also, keep in mind that he is retired from his job and must be over 60 years of age. At this stage of life, people do not understand new technology very easily and crypto is even more difficult to understand as any carelessness with the private key can make him lose his hard earned pension. I would advise if his son or daughter can take care of crypto if he agrees with the plan.

[kryptqnick]

Investing 40% is Bitcoin might be a good idea, especially given the current market and Bitcoin's price, but why not also leave a part in a bank with a low but steady interest rate? If it's a good bank, and he needs to ensure at least some of this money doesn't get lost in the process (and investing in Bitcoin means one should be ready to lose), I'd say it's okay. As for businesses (snack bar and agriculture), I don't know how risky it is, and I probably wouldn't try to find out. I do know that starting one's own business is pretty risky and few make it to profits. It's also a labor-intensive thing, while buying and hodling Bitcoin is not.

[m2017]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin, then i begin to discuss with him about bitcoin and how he can invest in it instead of having his gratuity with bank, i took time to explain to him many reasons why he needs to invest in bitcoin, i went through some search on the forum for related topics about bitcoin, and i clarified him the differences bitcoin has from other cryptocurrencies.

It's up to you if you think it's good to share financial advice with family members, but no matter how much we believe in Bitcoin, I would still be careful about advising someone to invest 40% of their money in something as volatile as Bitcoin. The way you wrote it, it seems as if there is an obligation for people to invest in Bitcoin, and we all know very well that this is not the case, and people should first understand what it is about, and only then invest in something.

Giving advice is always very easy, because it doesn't burden the adviser in any way. Giving financial advice means taking responsibility for yourself, because there are always risks and it is very bad to endanger others financially. I hope OP warned his uncle about the volatility of bitcoin, otherwise it might make him nervous or he may sell at a loss. In general, I approve of OP's initiative, but you need to do such things carefully so as not to harm relatives.

I also explained the types of wallets and recommended electrum wallet for him and asked him to safeguard his keys away from everyone including me, right now he has invested in bitcoin taking the current advantage of the dip in bitcoin price and set in with the exact 40% from his gratuity fund while other project plans where in progress just as advised.

I got the impression that it is a large sum of money, and then Electrum is a bad choice unless it is set up as cold storage. A hardware wallet would be a much better choice because it provides a much better level of security than desktop hot wallets.

Especially, for newcomers, as the retired uncle on this story. OP would do well to talk about hardware wallet to him, since we are talking about investing in bitcoin 40% of his savings, which can't be a small amount.

[Lucius]

Giving advice is always very easy, because it doesn't burden the adviser in any way. Giving financial advice means taking responsibility for yourself, because there are always risks and it is very bad to endanger others financially. I hope OP warned his uncle about the volatility of bitcoin, otherwise it might make him nervous or he may sell at a loss. In general, I approve of OP's initiative, but you need to do such things carefully so as not to harm relatives.

When it comes to money, all borders and barriers fall, and money is often the cause of great family tragedies. I learned a long time ago that there is one important rule, and that is not to influence anyone when it comes to money - because a person who does not know what to do with his money often seeks advice from other people - but in case something goes wrong, he blames everyone else but himself.

I'm not saying the OP was wrong because he probably had good intentions, but if his uncle has already agreed to invest a significant amount in Bitcoin, he should make sure that Bitcoin is safely stored.

[ethereumhunter]

I see you are on the right track in explaining bitcoin so he can open his mind to accepting something new they never thought of before. Frankly, it is very difficult to explain something, even a simple one, especially if he does not want to open his mind to accept the new thing.

You already explained about bitcoin and I think you also need to explain more about bitcoin, especially about the downturn that is happening in the market right now, because as a person who is new to bitcoin, a feeling of panic will be in his mind. But hopefully, he won't panic because I'm sure you can explain to him.

[Rruchi man]

I asked him to invest 30% of his gratuity fund into agricultural farming business ...another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin,

I find it surprising that your uncle would take financial advice from you especially the one that regards something as important as his gratuity. if you would ask me I would say an investment in the agricultural business and bitcoin is more appropriate, keeping out the snack bar idea which may require a good amount of the gratuity to set up and sometimes may turn out not as profitable as you expect considering that there is competition in the market and you may not know how to handle it well considering it is your first time in a food business, except it is not.

When it comes to money, all borders and barriers fall, and money is often the cause of great family tragedies.

This kind of money - Your uncle's long expected and important gratuity has the potential to cause this kind of problems if the market downturn begins to have an effect on it and it starts to look like he is loosing the money he invested. So i really hope you have and will continue to keep your uncle in the loop about the developments in bitcoin and crypto, so he develops a tough skin to ignore the market even when the price seems to be going down.

[348Judah]

They need to also be aware of the risks involved, not just in Bitcoin investment, but also the other investment plans

thank you and this will be be out into consideration as very important.

Another point to note, is the calculation sums up to 100%, which is the entire gratuity

no, if you take in consideration on what i explained, he is investing only 40% on bitcoin while the remaining 60% is going on agricultural farming business and roadside snack bar which are 30% each respectively.

It's up to you if you think it's good to share financial advice with family members, but no matter how much we believe in Bitcoin, I would still be careful about advising someone to invest 40% of their money in something as volatile as Bitcoin.

i so much believe on bitcoin long term investment to be less risk, moreso it's not an investment that could wipe away all his entire invested amount, there will be ups and downs within this said period of long term investment and that's why many go into investing on bitcoin for 2 or 4 years minimum range, here there will be an experience in both rise and fall of bitcoin price while the halving event will be the major concern to this happenings with ATH remain constant to set a new one within this same range.

The way you wrote it, it seems as if there is an obligation for people to invest in Bitcoin, and we all know very well that this is not the case, and people should first understand what it is about, and only then invest in something.

thank you for your this advise and base on what i wrote, the investment in not done only on bitcoin alone, but the opportunity in the current dip is ceased just to invest on bitcoin, which is buying at dip, he is also going by other two available investment or business to say, farming and a roadside snack bar, this two already takes more than the half of his entire gratuity fund already, i think the idea i adopt here is not to take all eggs on thesame basket, of which i believe they were better options than having the fund with the bank.

I got the impression that it is a large sum of money, and then Electrum is a bad choice unless it is set up as cold storage. A hardware wallet would be a much better choice because it provides a much better level of security than desktop hot wallets.

very importantly, this will be noted as well, thanks for the recommendation.

[Upgrade00]

no, if you take in consideration on what i explained, he is investing only 40% on bitcoin while the remaining 60% is going on agricultural farming business and roadside snack bar which are 30% each respectively.

And 60+40 sums up to 100%, which is what I was pointing out. All of the gratuity would be going to high risk investments.
When investing, even when you diversify, you should factor in amount you can afford to lose, cause just as one investment can go bad, so can another.

Good luck to you and your uncle!

[darkangel11]

Another point to note, is the calculation sums up to 100%, which is the entire gratuity. So, your uncle is investing his entire stash into high risk assets, which has potential for high returns, but also the risk of losses.

I wouldn't call these high risk investments. Farming is actually pretty safe these days, especially when we could be facing shortages in Europe, which can have impact on the whole world. Buying agricultural land is one of the best things you can do if you have a lot of money lying around in a bank.

As far as bitcoin goes, I don't consider it to be high risk after over 60% correction from the high price. If we were in an uptrend, 100% above 200 week MA, we could say it's high risk, but we are at the level where bitcoin used to be only a few times in its history and those were always low price points.
Chances of us going to 100k next halving are very high and compared to that you have inflation higher than what any bank can offer you. If what his uncle has is for instance 100k USD, he's going to be losing 5% a year, no matter where he keeps the money, unless he puts it to work in a business, buys some art or real estate.

[GeorgeJohn]

I will advice not use all the gratuity for Bitcoin investment because the regulations of bitcoin is not stable and is been control by anyone. And secondly, it's advisable to invest into cryptocurrency when you properly have undergoes the primary and tertiary observation and the rudiments of cryptocurrency. Investing in cryptocurrency is a welcomed development especially for people who knows the roots of Bitcoin and people who can exercise patient when cryptocurrency is in the state of bearish.

[Mpamaegbu]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin

Let me start here: don't advise anyone to go into commercial farming if their interest isn't there. Farming isn't an easy business to indulge. It may look simple to the eyes as one would think it's just putting crops in the soil and watch them grow or just buying a few birds from the hatchery and allow them roam around, feed and grow. Farming is like taking care of life. Crops and birds die the same way humans do too.

I've mixed reaction on the invest in Bitcoin thing for elderly people. I feel elderly people should learn how to relax and have a feel of life through nature. Watch birds sing. Everything isn't about making money. Old people should steer clear of Bitcoin. It's volatile and erratic. That won't be good for their frame of mind, as most of them are prone to high blood pressure disease.

[chaser15]

Definitely a good retirement investment plan but regardless of how you define "risk" regarding bitcoin investment, do you explain well all the associated-risk in anything related to bitcoin when it comes to investment? You used the word "investment" therefore to make it profitable in the future, it needs a serious hands-on touch.

Agricultural business is not a joke and it also needs a serious approach to everything starting from minor concerns to major ones. It also needs a big dedication to raise this investment and more time should be dedicated here.  It's not just a simple planting plant, raising animals and so on.

The other business, Snack Bar, also has lots of concerns to deal with and in order to have this investment successful, it should also be hands-on, as always.

What I'm saying is, with these various investments that will be executed at the same time, agricultural, snack bar, bitcoin - do you think it can be handled properly along the way? If yes, then good luck with your Grandfather's or family's investment.

[dunfida]

I asked him to invest 30% of his gratuity fund into agricultural farming business since we are in the raining season, planting of arable cash crops like vegetables could be a good business with high demands,  another 30% into starting a roadside Snack Bar, while the last advise was to make an investment with the 40% left in Bitcoin

Let me start here: don't advise anyone to go into commercial farming if their interest isn't there. Farming isn't an easy business to indulge. It may look simple to the eyes as one would think it's just putting crops in the soil and watch them grow or just buying a few birds from the hatchery and allow them roam around, feed and grow. Farming is like taking care of life. Crops and birds die the same way humans do too.

I've mixed reaction on the invest in Bitcoin thing for elderly people. I feel elderly people should learn how to relax and have a feel of life through nature. Watch birds sing. Everything isn't about making money. Old people should steer clear of Bitcoin. It's volatile and erratic. That won't be good for their frame of mind, as most of them are prone to high blood pressure disease.

Since they are old then it would be understandable that they are really having those issues with health and its true that whenever you do reach out into this particular age level then money wont really be the main

priority but rather making yourself relaxed after all the years you've been into and trying out to face up lots of challenges just to raise up your kids and make them grow and live their own lives.

Your responsibility is already done and enough and aiming for more money is somewhat pointless on this particular time.Its not bad to aim for money but it should be on that certain extreme extent.

[Franctoshi]

Your retired Uncle has actually made a wise decision by choosing to invest in Bitcoin and he's lucky getting into the market when there's currently big opportunity In the market , Old people getting to dip their hands in Bitcoin is now becoming quite interesting . I guess some of them seeing the high inflation in place are beginning to see what we saw before and they are now buying the idea of seeing Bitcoin as an investment .