Would you advise a friend in the same way?

[Alone055]

I find nothing wrong giving a financial advice and besides you're the one sharing an opinion, your opinion is not wrong but first the money is an organisational money like a company money so my question is how long can this company invest in bitcoin without wanting the money for something else cause bitcoin investment is for the long term plan, if you're telling your friend to invest for just a short term profit then it's not right. I don't like a situation when I tell a friend about bitcoin and it turns out to be a bad advice especially when you over hype bitcoin and they actually expected more. I will always say bitcoin is a good investment choice but your friend should understand about bitcoin first before investing.

Agreed. Giving advice where the result can sometimes go the other way can put you in a bad situation because your friend might be thinking that you are giving him the best advice and his company and the money would grow over time, though it can through Bitcoin investments. Still, we also need to understand that Bitcoin is a volatile asset and when we say volatile, we mean both positive and negative movements. So if Bitcoin can go from $30k to $60k in a couple of months, it has the potential to get back to the same point within a month if market situations change.

One more reason that I always keep in mind when advising people about such things is not to become the target in case the investment doesn't work out or they face losses instead of gaining anything over their investment. If you tell your friend to make this investment, and he does that, however, after the investment, Bitcoin starts dropping in value and your friend sees the value of his company's funds dropping significantly, he will be worried and mad and he will be mad at you for giving him this advice of investing the money in Bitcoin.

So, because of these reasons, I always prefer not advising people to make investments in cryptocurrencies or any volatile and unpredictable assets including Bitcoin. If they do it themselves, well and good, but if they ask me, I will tell them straightforward that Bitcoin is good but it has its risks, so do your research before you do anything.

[1715189930]

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[CageMabok]

If what you’re saying is that he should use a fraction of what the company has, then that makes sense. But if you’re just advising him to invest everything then I don’t think it’s a good idea because the company should have its own funds and not use all of it on investments. Also, just leave him with the advice. If his thoughts keep telling him not to invest it, then don’t talk about it anymore. This is just in case it happens that there’s a price dump tomorrow, you don’t have to be blamed.

Suggesting good things is not wrong for anyone, but when it comes to giving advice, there is no need for pressure that is so excessive that it can disturb someone's thoughts. Because everyone still needs to think after receiving advice from others in order to make a little evaluation with the funds they have, because it is true as you said that we don't need to tell them to invest everything in anything. If those who receive advice still have to take care of the funds they currently have because the funds from the company must be clear and well maintained so as not to make the company go bankrupt when bad things happen.

[Ryu_Ar1]

I don't recommend it if it's a holding company that was inherited from his parents because even though being in bitcoin is a good thing but don't involve any form of business to bitcoin let alone try to follow what Saylor did because in the end we don't know how your friend's company is running because what Saylor did was proportional to the stability of his company but what if your friend's company is not as good and stable as that because it will only make your friend bother himself in the end.

I agree that in the end bitcoin can be one of the good investment options but if you are too imposing just because you see rich people like Saylor who become bitcoin maximalists, in the end we will not be able to follow it especially if the company funds are not that much in cash flow.

[_BlackStar]

I can say your financial advice is quite good so far - but have you considered your friend as someone who has the ability to make wise decisions regarding finances and investments?

Let's say your friend has $1M in his father's company savings in the bank - that's the only source of finance for the company he runs. If your friend is interested in investing only because Saylor made huge profits from bitcoin - then is he ready to face the consequences if his expectations do not match reality?

Bitcoin is certainly worth considering as an investment asset that has performed well so far - but its price volatility is likely to unbalance the company on its balance sheet. 20% of the company's total budget is probably still okay to invest - but if the percentage is higher, then the risk will also be worth it. But of course - with the right strategy.

[MarjorieZimmermanGinger]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

This is complicated and if we are trying to describe a company your friend should not take over the company because his parents are old. We also have to know whether he previously worked in the same sector or whether he was already in that company.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

What field does the company operate in and what financial resources did they manage previously? You shouldn't misrepresent MicroStrategy's success because different environments are definitely not the same. In fact, when he insists on doing what you suggest and when he doesn't understand Bitcoin, it will make his father's company even more chaotic.

Understand first how his father managed the company because his style may be different from the advice you are trying to give. It's even worse if your friend doesn't understand Bitcoin and when he tries to practice it will be much more difficult to develop. You have the right to make suggestions but he should make decisions based on his father's considerations and direction.

[Humblevirus]

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Bitcoin has proven to be a very good investment, according to its history, so investing is a good idea. But if someone wants to invest in Bitcoin, it is advisable to use the money that is not ready to use in the near future due to the volatile nature of Bitcoin. The price is always up and down; if someone invests the money that it may use in a closer time, the price may be down that time you want to use it, and selling it at that time may turn out to be a loss. But investing the money someone will not use in a closer time can really help to hold onto bitcoin for a long period of time, like experiencing one or two bull runs before planning to sell it and by time someone should make profits.
 
So given your friend advise to invest company money in bitcoin is not a good idea, I see it at risky. company need some reasonable amount for backing up, the money in the bank account may not have anything doing there according him  but true that money may save good purpose later if anything happen to the company, your friend just take over the company it may not understand how many things are being running in the company, so if your friend invested all those money in the bank account to Bitcoin and some problem later rise in the company and the Bitcoin price was down that time. how will it do, your friend can invest his own personal money that it can afford to lose but investing company money it is big risk. 

[Yatsan]

Well, given that we are in this industry, we know how profitable Bitcoin is as a digital currency and how profitable it is especially during bull market. However, running a company is just different and that funds of it should be properly alloted. Obviously, Bitcoin's market price is volatile; if the company will be in a sudden in need of money for maintenance and other necessities, and the price of Bitcoin  happened to be down by that moment, How would he resolve the situation? It is good that you give him an advice or suggestion because that's his primary need based on the scenario. It will still depend into him whether he would choose to do so or not to. He should just take consideration that he is running a business and adding a risk to a risk will be tricky on his end.

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

In short-term you're probably right about giving that advice but in the long-term, there's a possibility that the business would see some unforeseeable events that could lead to something really bad which would end up with you having nothing but the chances of being blamed. I think that you need a spare money that's never moved or meddled in any way in a business because expenses that aren't expected are expensive especially with business not to mention that the foreseeable things that might happen is even higher because your friend took over a company and we all know how it feels when it comes to changes in the management, a lot of people would have a hard time adjusting and some might not even like the new management that could lead to them quitting which is a big possibility.

If he happened to follow this advice, he could easily do a short term and long term action, however profit will never be assured. But what's best to do is to ask from who he inheritted it from for what's best to do if that person is still alive 'coz for sure he would know what's best for that company.

[justdimin]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

I would say that is not a bad investment advice, he could definitely do well, but what we need to remember is that companies may need urgent money and that means if he puts the money in bitcoin and urgently need some money he will have to cash out his bitcoin and if bitcoin is down at that moment then it would be a bad idea.

What Microstrategy does is not putting ALL their cash into bitcoin, they do have some in bitcoin and some in other stuff, but they do have liquidity that allows them to do fine, which is why I believe that they are not going to end up with any trouble. If your friend puts 50% of the cash into bitcoin that would be better, keep the other 50% in something simple, like interest, that way he will be fine.

[Frankolala]

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

You should only tell people about bitcoin, and allow them to make their decisions if they will invest or not so that if things didn't work as expected, you will not be the one to be blamed. You don't need to use MicroStrategy as an example to him, because Micheal Saylor is the owner of his company, and he understands how bitcoin works before he started buying. MicroStrategy must have all called some business experts and get advice from them before he took the bold step of investing part of MicroStrategy funds into bitcoin investment.

Your friend lack business management, and I believe that he is new in running his father's company, which makes him not yet knowledgeable on how to manage the company's funds. This is why you don't need to advice him to use the company's funds to invest in bitcoin, because company needs funds to keep the company running incase they are faced with big challenges that can affect their productivity. Your friend is a novice to bitcoin and should not bother investing with the company's funds, until he has understand the in an out of the company funds management.

If he must invest, let him use only 10% of the company's funds, because bitcoin investment is a long term thing.

[KiaKia]

Don’t ever give any financial advice to anyone. If the advice turned into profitable, then they will praise you, but by chance , if it ends in loss, then they will be the one who will blame you. Hence you can give suggestions, but don’t financially advise them. It’s their own money, hence they should be responsible for where to invest or where to not. As a second person you should always avoid these types of situations.

I've landed myself in similar situations before and till today I am still blaming myself for even sticking my neck out for someone in such way.

You can never know people completely, even if you spend a lot of time together, it's a whole new experience if it involves money, I was helping this person but it was a very big mistake.

To make passive income through crypto I invested some money on mining, and friends and family do love the idea of making a few dollars every day so they started to disturb me, saying they wanted to do the same, at first I tried to avoid them but later I started hearing rumour that I don't want anyone to rise up like I did.

I went ahead and helped a brother, he had not much idea about setting up the rigs and I helped him, we went to local store together to buy the needy hardwares but in the end they got faulty even before he made his ROI back, he got pissed and he forget about all the warnings I gave him, he still start saying things about me, putting all the blame on my head.

Since that day I have learned to always maintain my lane, the risks you can take can be too heavy for others, do not stick your neck out for anyone even when they are begging you to, someone humans just can't withstand losses.

[betswift]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Your advice about investing in Bitcoin, inspired by MicroStrategy's approach, has proven successful for MicroStrategy itself, which saw a 116% gain and a portfolio increase to $13.2 billion. This strategy positioned MicroStrategy as a leading corporate adopter of Bitcoin, significantly benefiting from the digital asset's potential.
However, investing in Bitcoin or any cryptocurrency carries risks, including market volatility. It's crucial for your friend to consider these factors and possibly consult with a financial advisor before making such investments..

[Ultegra134]

I've landed myself in similar situations before and till today I am still blaming myself for even sticking my neck out for someone in such way.

You can never know people completely, even if you spend a lot of time together, it's a whole new experience if it involves money, I was helping this person but it was a very big mistake.

To make passive income through crypto I invested some money on mining, and friends and family do love the idea of making a few dollars every day so they started to disturb me, saying they wanted to do the same, at first I tried to avoid them but later I started hearing rumour that I don't want anyone to rise up like I did.

I went ahead and helped a brother, he had not much idea about setting up the rigs and I helped him, we went to local store together to buy the needy hardwares but in the end they got faulty even before he made his ROI back, he got pissed and he forget about all the warnings I gave him, he still start saying things about me, putting all the blame on my head.

Since that day I have learned to always maintain my lane, the risks you can take can be too heavy for others, do not stick your neck out for anyone even when they are begging you to, someone humans just can't withstand losses.

That's exactly how I feel. Even though the OP didn't give him bad advice, from how I see things, he could have avoided getting into details and should have stuck to the fact that money sitting on a bank account is losing value and perhaps offered a few sources on what to look for. I'm not saying that the OP was wrong in any way; it's just that people don't tend to take responsibility for their own mistakes and usually want to blame someone else for their misfortune. I've had my fair share of experiences that didn't necessarily only involve crypto, and I currently prefer to avoid having these conversations. I prefer to mind my own business and provide generic advice if someone is persisting.

[Bravut]

You gave him an advice to invest in Bitcoin, rather than providing a possible investment options which gives room for him to choose and make his decision. When it comes to investment everyone should be entitled to there own opinion, don't think how your friend, relative or anyone should invest. Your own role should be giving an idea which you think can work not how they go about risking there money into the investment.

He doesn't necessarily need to invest in Bitcoin, there are several options, investing  in Bitcoin requires patience and a long term view, of which you ain't sure about how long he could hold and stay unfazed in such volatile market.

In a Nutshell let him decide for himself and the best opinion you could offer  would have been him re-investing those money back into the company which will be of great benefit since he would soon take over, thus expanding the business and taking the passive or reserve gotten overtime, then he can diversify.

[Woodie]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Personally I say this wasn't sound advice considering you telling your buddy to mix company business with personal business which is wrong! If your friend wants to take extra investments or diversify his portfolio in things such as crypto, better he does this from his personal pay because time will come to make a big investment such as non current assets and funds won't be available how will he explain this...and by him taking over the operations of the company does that mean his also the accountant managing the companies finances??? Anyway I know you mean well but don't mix business with pleasure/friendship, just draw that line and you will be okay.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Don't mix friendship with business, for me bad advice...if he wants to invest in crypto let hisms use his salary to do so...if he so needs to use that money improve the company, let him have new assets acquired such as a utility vehicle, buildings painted, or acquire new office space to expand to help write his legacy...

[JunaidAzizi]

As a friend, you did the right thing by giving your friend advice. It's a generous quality that many people lack. However, I don't think your advice is suitable for your friend or yourself. Your intention is good as you want your friend to make more money, but suggesting that your friend should invest the company's money in Bitcoin is not wise. Instead, you can explain to your friend the investment plan to invest his own money in Bitcoin and tell him about its strength and potential. Bitcoin is highly volatile and its prices change frequently. If your friend invests the company's money on your advice and faces losses, he will blame you for it, and the company may suffer.

[Lanatsa]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Its not really that bad to make out some recommendations, the only thing that you shouldnt do is not to make out some guarantees about that sure profits and always that mentions about the risks.
Somewhat its impossible that your friend isnt aware of the risks involved when dealing up with any investment which it isnt really that only talking about Crypto/Bitcoin but also in other options as well.
It would really be that so hard on making yourself that handling a company which inherited of yours and since that there are some extra money that is sleeping on the bank then i would definitely be thinking about using of those funds on trying to have that expansion or doing other physical business that i could make on. This is what i do prefer on doing so.

Next, i would really be reconsidering on making investment with crypto which we know that diversification would really be that always best because once the other one investment
fails then you do have the back up. So the more the better as always.

[Makus]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Op, irrespective of the fact that you told your friend about Bitcoin and gave him the merits of Bitcoin investment, it would have been better if you also talk to him about the demerits of Bitcoin investment so that, he would not put all the blame on if any thing goes wrong. Because most times due to lack of enough knowledge, some beginner make the mistake of having a consciousness of trading rather than investing for long term and after all their experience with the loss encountered they begin to put the blame on you who taught you were doing them good.

I know so many persons would disagree, but before you invest in Bitcoin I advise that you have a concrete knowledge of the basics of Bitcoin investment. Basic term like Bitcoin network, Blockchain, wallet, seed phrase.....  It's better to know what you are getting your self into than to make your moves based on  hope or other people's consent. I believe this is were "knowledge is better than Faith" can be applicable.

[AYOBA]

offering advise to friends is usually a good idea, but occasionally you also need to exercise extreme caution to avoid offering a buddy bad advice before you do so. However, as he is the one who approached you, he assumed control of his father's business because he was already elderly and realized that there was an excessive amount of money in his account that was sitting idle. If I were to give him any advise, the first thing I would say would be to take over his father's business how force him to supply the resources that company needs to make the company stay afloat.

After that, I would advise him to consider starting a different company that will provide more revenue for stucco. It's also a fantastic idea that you suggest he buy Bitcoin. He can make a ton of money if he follows your suggestion and invests a portion of that cash in Bitcoin, holding it for an extended length of time.

[kawetsriyanto]

You actually only need to tell him about another way of investment. But you never advice him or even force him to invest in Bitcoin. Let him decide himself whether he wants to invest or not. It is not easy to handle the financial of a company. We can't compare MicroStrategy and his company. It is probably too much different.

If you advice him, he has the right to blame you when he fails in Bitcoin investment. But if you only tell him a successful company in Bitcoin investment without giving any advice, you have no responsibility even if he fails in the future. TBH, I won't advice him to invest if I were you. I prefer to tell him about some successful companies in Bitcoin industry.

[cr1776]

Is this the wrong advice? A friend of mine took over his father's company because he is so old already and he told me about the money thats available doing nothing in the bank.

I told him to think about investing that money if he wants to keep the company growing, I told him about how MicroStrategy is doing so well using Bitcoin as a strong backbone of the company, I believe that even a small company can turn big if they use Bitcoin as their main investment.

Or am I wrong? I need to know if this advice is a good one or a bad one, I gave him this advice because we are very close and also because I will do the same thing if I am in his shoe, this is the best thing i can think of right now.

Where is he located?  People in Cyprus in 2010-early 2013 would've done well to put their money in bitcoin, not just because of the MSTR effect, but because they locked down the banking system in March 2013.  Then stole a huge percentage of their assets.  (They called it a haircut, but it was theft.)   Bitcoin would've preserved their wealth.

Is your friend in a country with high inflation?  Capital controls?  Statists (socialist, communist, dictators etc) in control?  

So yes, he could have a good use case.  Not to mention the potential for appreciation.