Selling All Fiat In Bank For BTC?

[jerry0]

So I have heard a lot of people say this.  Such that they are going to withdraw all of their money from the bank and buy BTC.  And things like will sell their car and house and possessions and all that to buy btc.  Many say they will do this and be all in with BTC so to speak.



First off, this doesn't make any sense.  You have to have fiat so you can spend it on food and fiat in the bank to pay for bills and property taxes if you own a house etc.  So when people say they are all in on BTC, they obviously still mean enough cash in the bank for your basic bills things?  Like they still have at least 2k usd or 5k usd or 10k usd in the bank?  Or for people with lot of money, well still at least 500k usd in the bank right etc?  


Now say someone has 50k in the bank.  Say their house is worth 500k and they sell that.  Well if they do, let say they have around 525k in the bank after taxes for selling their house.  That person owns nothing else.  Well you going to have to rent an apartment since you need a place to stay.  So how can this person even be all in with BTC then?  I mean they surely will still have at least 50k in the bank still like previously right?  But now that 475k or so from the proceeds of selling the house will be sent to an exchange to buy like 10 btc?  So this person's net worth now in terms of btc to their cash would literally be like almost 90%.  Isn't this very risky for someone who converts cash to crypto in terms of risk?  

[jerry0]

Also can someone explain to me why people say the dollar will collapse and what that means?  I know the dollar is worth less every single year because it buys less than it did back then.  I understand that.  But I don't understand what they mean when the dollar will collapse.  That obviously doesn't mean anyone that has dollars whether physical cash or money in the bank... that money will be worth nothing right?  They way it's phrased, it would sound like the US dollar would be collapse where it isn't worth anything but that's not what it means right?  I recall a youtube video mentioned how the currency of many dollars collapsed where nobody wants to hold that currency because it lost a lot of it's value and people want USD there.  I forgot what that country was but I think one of them was Lebanon and another is Argentina?  There is another country but I forgot the name of it.  It had someone saying like $10 USD would get you 10 million of that currency and that currency is like bricks of money but it was worth $10 USD.  Anyone know that country I'm talking about?


Also what do those rich investors on TV mean when they say they don't own any cash and recommend you the same?  They seem to recommend buying gold and property and stocks and bonds.  Then you have some that say crypto as well.  But are these people right or wrong?  This is what has me confused.  If a regular person could have 2 million dollars in the bank after taxes from selling their crypto, stocks and house and whatnot, isn't that more than enough to retire and live a frugal live even in the US as long as it isn't an expensive state?  Like if someone had a lot of crypto and sell it all and still ahve 2 million dollars after taxes.  They could literally buy a house for 500k.  It could be 2 families and they rent half of it to someone.  So that person's rent they collect would easily pay the person's property taxes and a good portion of it would be on their own electricty and utilities as well.  They now have 1.5 million dollars in the bank.  This person could put 1 million dollars in the bank and earn 5% interest and earn $50,000 a year.  Assuming they are frugal and buy just 1 vehicle... couldn't this person just retire as long as they aren't buying many expensive things and don't go on lavish vacations?


I am very confused why people hate fiat.  I mean if I had 2 million dollars in the bank after tax, I would feel set for life.  Sure I can't buy multiple cars, or go on lavish vacations, but I surely can go on a few vacations and not work if I'm earning $50,000 in interest a year right where any property taxes are paid off by the person renting half of my house where the house would already be paid for?  Yes I used 500k for a 2 bedroom house which is lower than the average amount in the US.  Say you make the number 800k for the house... well you could still have $700,000 in the bank for CD and still earn $35,000 a year from interest alone.  Is my logic wrong here with fiat?  I never understood why people hate cash.  I mean... isn't cash the ultimate endgoal?  And cash I mean cash in the bank.  With btc... yes you have btc, but if you can't convert it to cash, well how you going to pay your bills and food.  Or is my logic here wrong?  I don't get how you have rich people with 100 million dollars say I don't want cash.  I want gold and property and stocks.  Can someone explain what I"m missing here?

[franky1]

your posts belong in the economics category.

by the way a $500k house(10% deposit) on a 15yr mortgage is ~$4k a month = $48k a year
if you are earning $50k a year. your mortgage is literally your income... 99%
it should be 30%

also a $500k home is not $500k total paid.. after 15 years you would have paid $140k in interest. meaning the house break even would be (if inflation was ZERO for 15 years) $640k sell price just to break even
however inflation changes how many loaves of bread you can buy.
so after factoring how much money (without repairs) you put into the house you better hope house is able to sell for $780k in 15 years just to break even to monetary value of spending power

however
selling house. and using the cash in an investment which will appreciate faster in next 2 years is better then holding onto debt for 15 years paying 99% of your income on debt payments

moving into a low cost rental for $1200 a month also free's up alot of spare cash per month. your literally paying yourself $3000 extra to yourself that you are not pushing into some bankers debt balance

[Cantsay]

Do you ever make any post that’s not difficult to understand? All your post I’ve replied to are just simple question that were made complicated due to the wall of text that you usually use when writing them.

First off, this doesn't make any sense.  You have to have fiat so you can spend it on food and fiat in the bank to pay for bills and property taxes if you own a house etc.  So when people say they are all in on BTC, they obviously still mean enough cash in the bank for your basic bills things?  Like they still have at least 2k usd or 5k usd or 10k usd in the bank?  Or for people with lot of money, well still at least 500k usd in the bank right etc?  

When they say “withdraw all their money” they don’t mean to the last penny that’s in their account.

Okay let’s use this as an example, before I got into bitcoin I use to keep all my money in my account and at the end of each year their their actually no difference between when I deposited that money meanwhile banks are constantly using it for their own benefit like giving it has a loan to investors who in turn make more money and return the amount borrowed and use the rest to invest meanwhile you that have millions sitting in your account is not profiting off of it. So that’s why most people have decided to remove their money from bank (the ones they won’t be needing anytime soon) and invested in bitcoin, at least they’ll be able to see profit if the price should increase rather than just let the money sit in their account and lose its value due to inflation.

It won’t be wise for one to just withdraw all their money from the bank or converts all their money to bitcoin, if they should do that, what then will they use for payment in their day to day life?

[DubemIfedigbo001]

So I have heard a lot of people say this.  Such that they are going to withdraw all of their money from the bank and buy BTC.  And things like will sell their car and house and possessions and all that to buy btc.  Many say they will do this and be all in with BTC so to speak.

This is the statement of an illiterate, if someone makes this statement, he obviously knows less or nothing about bitcoin. He need to learn more about it. Bitcoin can never replace fiat and for now, fiat is more widely accepted than bitcoin, so its very important to have fiat alongside bitcoin to be able to cover properly for your daily expenses.
If you plunge ask your money into bitcoin, when you have needs, you'll still liquidate the bitcoin to fiat in order to meet up your needs. That's your loss because you will pay transaction fees which is unnecessary expenses on your part. Possibly, sure to the volatile nature of bitcoin, the value may have dropped as compared to when you bought, making your loss more significant.
Finally, bitcoin is a long term investment and if you can't invest for a long term, the aim of the investment is defeated and you shouldn't have invested in the first place

[Captain Corporate]

I am pretty sure that when people say sell "all" they do not mean the money they are going to buy milk with next day, that's not the point. Most people have two separate accounts, one where they invest, and one where they spend. You may have 800 dollars in your spending account, while also have 8k dollars in your savings, two separate places and not at the same place, could be even different banks and in this case could be bitcoin too. When they say they want to sell it all, they mean the savings, the investment, could be interest account, could be stocks, could be gold, doesn't really matter, just have money in your account for living, and rest all goes to bitcoin, and I have been like that for 7 years now.

[TimeTeller]

I am pretty sure that when people say sell "all" they do not mean the money they are going to buy milk with next day, that's not the point. Most people have two separate accounts, one where they invest, and one where they spend. You may have 800 dollars in your spending account, while also have 8k dollars in your savings, two separate places and not at the same place, could be even different banks and in this case could be bitcoin too. When they say they want to sell it all, they mean the savings, the investment, could be interest account, could be stocks, could be gold, doesn't really matter, just have money in your account for living, and rest all goes to bitcoin, and I have been like that for 7 years now.

That is true, you can't use all your money to buy btc as you also have other basic needs to address in order to survive.
So selling all your fiat is not really true at all. How can you survive if you have no other means of paying even for your food.
That is why I can agree that when you say you are selling your fiat, it is your extra or spare money that you feel you don't have immediate need.

[Renampun]

sell the house to buy bitcoin - borrow from the bank to buy bitcoin, well at least think about everything carefully first, because investing in bitcoin requires a good strategy, especially those that apply the DCA method. Be wise when investing in Bitcoin, the sentence must be emphasized, investing in Bitcoin cannot be dangerous, you must not make excessive sacrifices and you must prioritize important things first. Also think about how you get money to meet your daily living needs, because if you can fulfill this then you will be able to continue investing in Bitcoin safely and peacefully.

[Stepstowealth]

So I have heard a lot of people say this.  Such that they are going to withdraw all of their money from the bank and buy BTC.  And things like will sell their car and house and possessions and all that to buy btc.  Many say they will do this and be all in with BTC so to speak.

First off, this doesn't make any sense.  

Fiat is still the accepted currency for Many transactions, to only want to have btc without fiat is not a good plan because.it will not work. Invest in bitcoins but also keep money in fiat for expenses. if you decide you want to only have bitcoins without fiat, you will not be able to hold just bitcoins comfortably without being tempted to change some occasionally back to fiat.The wise choice is to keep more money in BTC than fiat.

[oktana]

I’d warn that no one shouldn’t entirely convert all their funds and assets to Bitcoin. In as much as I pay the idea of Bitcoin, I wouldn’t want to watch people shoot theirselves in the leg. Bitcoin has not gotten to that level where every store accepts it. If it had, you can convert everything you own to Bitcoin and still make your payments like nothing happened.

[jerry0]

your posts belong in the economics category.

by the way a $500k house(10% deposit) on a 15yr mortgage is ~$4k a month = $48k a year
if you are earning $50k a year. your mortgage is literally your income... 99%
it should be 30%

also a $500k home is not $500k total paid.. after 15 years you would have paid $140k in interest. meaning the house break even would be (if inflation was ZERO for 15 years) $640k sell price just to break even
however inflation changes how many loaves of bread you can buy.
so after factoring how much money (without repairs) you put into the house you better hope house is able to sell for $780k in 15 years just to break even to monetary value of spending power

however
selling house. and using the cash in an investment which will appreciate faster in next 2 years is better then holding onto debt for 15 years paying 99% of your income on debt payments

moving into a low cost rental for $1200 a month also free's up alot of spare cash per month. your literally paying yourself $3000 extra to yourself that you are not pushing into some bankers debt balance

The assumption here is this person's 500k house is already paid off.  Now they want to sell it someone so whoever they sell it to, well the seller is going to get at least $475,000 total at least after selling fees right?


I mean if this person sells their 500k house and wants to put that into btc.  So since they have no house now, well they can rent an apartment whether a cheap one or average one or what not.  But if they buy btc with it, they could buy like 10 btc or so, so now their net worth in btc would be a lot.  So imagine someone sells everything they have, such as house, stocks etc... well let say they have 50k in the bank.  This person could literlaly have 1 mllion dollars or more in btc and now their net worth in btc compared to their money in the bank could be 95% or more.  So people who say they are all in with btc... obviously they don't mean like all in where they don't have cash to pay for their bills and food.  But wouldn't that mean they are like at least 90% net worth in btc at least assuming they sold all their houses if they have more than 1 and any stocks or bonds etc and just renting?


The thing is I thought the end goal was to have cash in the bank.  I don't really understand people who say I won't sell any btc no matter what.  I mean if btc goes to 1 million dollars, and a person has 10 btc, but has 50k in the bank, that wouldn't make any sense correct?  You need cash or fiat in the end to buy things since you cannot buy most things with btc. 

[The Cryptovator]

Cryptocurrency investments are always risky investments. If you put all your assets in Bitcoin, you are a gambler, not a professional investor at all. No matter if you are a billionaire, you should always have fiat to survive. Its because cryptocurrency would dump anytime and you would suffer. It's always advisable to invest in something you can afford to lose. Otherwise, you'll have to live with the consequences of a hard dump. Don't think crypto or bitcoin investment is a quick-rich method.

[Dr.Bitcoin_Strange]

In this modern generation, I don't believe that anyone will be crazy enough to sell off all their property to invest in Bitcoin, or perhaps. Making references to selling houses, I don't think anyone will be so foolish as to sell off their house, invest in Bitcoin, and rest in a different apartment, which will still require them to pay rent. Meanwhile,  if it were their own house, they would not have to pay for house rent. After taking such a decision, how does the person think he or she can be able to hold their investment successful without having any financial need, and they will still sell some Bitcoin in order to solve the need.

[franky1]

The thing is I thought the end goal was to have cash in the bank.  I don't really understand people who say I won't sell any btc no matter what.  I mean if btc goes to 1 million dollars, and a person has 10 btc, but has 50k in the bank, that wouldn't make any sense correct?  You need cash or fiat in the end to buy things since you cannot buy most things with btc.  

the question should never be "sell all" or "hold all"
those extremes can both go wrong
the answer is to calculate a reasonable middle ground of selling some holding some

money in a bank is only this year became 4-5% yet many many fiat share investments average 7-12%
and deflationary assets can be more

you do not need to become a caveman  eating only beans for many years. so dont think you have to go to extreme poverty to invest large

if your lifestyle is of a $50k a year income life. if you did have a mortgage.. then that house is too much house for your income. you would downsize
how much you would then invest into one asset is then a math question of risk tolerance

for instance, lets use bitcoin market history of last few years

$70k ATH
$60k
$50k
$40k
$30k
$20k
$10k

dont buy
buy some you can afford to not need access to soon, nor afraid to lose
buy as much as you can afford to not need access to soon, nor afraid to lose

remember to buy low sell high

as for selling. its again not a question of sell all ASAP or hold all forever. its again a math question
calculate a conservative multiplier for the next 2 years leading to the ATH

lets say todays calculation expectation ATH is a conservative $150k max in 2 years

$150k
$140k
$130k
$120k
$110k
$100k
$90k
$80k

sell as much as you want
sell some
dont sell

[sheenshane]

I don't really understand people who say I won't sell any btc no matter what.  I mean if btc goes to 1 million dollars, and a person has 10 btc, but has 50k in the bank, that wouldn't make any sense correct?  You need cash or fiat in the end to buy things since you cannot buy most things with btc. 

That's what people most anticipated, to gain profit from Bitcoin, to store value.
There's no need to put in risk your daily life at risk by investing in Bitcoin selling all your property hoping to double in Bitcoin because there's no promising time on it when you will have to make a profit.  If you've enough funds that be willing to wait for a certain time, that's a good decision to invest in Bitcoin.

The real reason why Bitcoin was created was slowly forgotten.
Instead of the purpose of peer-to-peer transactions, they store value and make a profit.

[suzanne5223]

In this modern generation, I don't believe that anyone will be crazy enough to sell off all their property to invest in Bitcoin, or perhaps.

Never say never. Some people strongly believe in the potential of Bitcoin and also know what the interest of BlackRock will impact on the BTC market. If someone like CZ could quit his job, sell his house, and into BTC 10 years ago and Theymos once said he had most of his fund in BTC.
We still have some people who can take the risk especially now that most giant investment organizations are interested in BTC.

[hatshepsut93]

 Isn't this very risky for someone who converts cash to crypto in terms of risk?  

Selling your house to buy BTC is not just risky, it's pure idiocy. Having one house is a basic need, if your basic need is not covered you will have very difficult and stressful life, you will need to spend money on rent or live with other people. If BTC crashes then this state will be locked in. The potential gains of owning an equivalent of 3 houses is not worth the risk of ruining your life. It's better to build the wealth slowly and steadily and only take the risks that will not destroy your life - that's what "investing what you can afford to lose".

[Darker45]

In short, don't believe people who are saying they're all-in on Bitcoin. While there have been news of a certain family or persons who are living life fully in Bitcoin, I doubt it's easy. Or perhaps they're not really completely living with Bitcoin alone. For all we know, even lots of shops and stores that are accepting Bitcoin are actually accounting and reporting sales in fiat.

It's common to hear about living on bare minimum after going all-in on Bitcoin on social media. I guess that's more of a meme than reality. Those are obviously exaggerations and even misplaced. And you can't make a commitment or a risky life decision based on those.

[jerry0]

The thing is I thought the end goal was to have cash in the bank.  I don't really understand people who say I won't sell any btc no matter what.  I mean if btc goes to 1 million dollars, and a person has 10 btc, but has 50k in the bank, that wouldn't make any sense correct?  You need cash or fiat in the end to buy things since you cannot buy most things with btc.  

the question should never be "sell all" or "hold all"
those extremes can both go wrong
the answer is to calculate a reasonable middle ground of selling some holding some

money in a bank is only this year became 4-5% yet many many fiat share investments average 7-12%
and deflationary assets can be more

you do not need to become a caveman  eating only beans for many years. so dont think you have to go to extreme poverty to invest large

if your lifestyle is of a $50k a year income life. if you did have a mortgage.. then that house is too much house for your income. you would downsize
how much you would then invest into one asset is then a math question of risk tolerance

for instance, lets use bitcoin market history of last few years

$70k ATH
$60k
$50k
$40k
$30k
$20k
$10k

dont buy
buy some you can afford to not need access to soon, nor afraid to lose
buy as much as you can afford to not need access to soon, nor afraid to lose

remember to buy low sell high

as for selling. its again not a question of sell all ASAP or hold all forever. its again a math question
calculate a conservative multiplier for the next 2 years leading to the ATH

lets say todays calculation expectation ATH is a conservative $150k max in 2 years

$150k
$140k
$130k
$120k
$110k
$100k
$90k
$80k

sell as much as you want
sell some
dont sell

Yea in this example, it would be like having money and assets already where you would then sell all of it and have little cash and live like a caveman. 


But in the other example in the other thing I mentioned, that is much different right?  Like if someone invested small but the btc went up a lot and they still living like a caveman, that would be stupid right?  Or it still makes sense.  Assuming again that person makes low income to cover living expenses and crap apartment and been doing that for years and also 5k in the bank.  And not even selling any btc they could possibly be in the mid 6 figures even because they don't want to cash any btc out.  That would be dumb or not?  Obviously if you have an emergency, you have to sell btc.  But like imagine the caveman person not wanting to spend anything and just living in their crap apartment etc. 

[franky1]

In short, don't believe people who are saying they're all-in on Bitcoin.

there is context to any statement
did you know that when people only put in their 7.5% pay into a pension..
when they reach 65yo and see their bank account is only $10k.. be on minimum wage but their pension pot is after 40 years $900k meaning their salary is 3% of pension.. their savings is 1.1% of pensions.. so technically they are "all in on pensions" because over 95% of wealth is in their pension
however it only represents a small percentage of actual spending towards that pension over time

so in bitcoin terms some may have invested small amounts in previous years but has not multiplied to be alot more then X years salary/savings though it did not cost them that much to invest initially
..
some say they are "all in" if majority of invest amount is in bitcoin. again it does not mean everything but a tin of baked beans went into bitcoin. it just means they have not diversified their investments into multiple assets
..