Convincing My Cousin to Invest $20,000 in Bitcoin

[Rengga Jati]

I would still say $20k is a big amount and your friend should not really have trusted you with this big sum. Investing in bitcoin can definitely make us earn really good profits if compared to other financial sources but we can never ignore the risk involved. People like your friend like to play safe. These people would consider investments to be safe in any centralised asset like gold or stocks but when it comes to bitcoin, they would always have the benefit of doubt.

He convinced his cousin to invest Bitcoin, he didn't say to convince his friend. I think you need to read the thread first, bro.

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin.

I agree, $20k is quite big amount of money. However, his cousin finally agreed to invest in Bitcoin. So, OP actually succeeded to convince his cousin investing in Bitcoin.

He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

His cousin invested in Gold, but he was not really sure with Bitcoin because of its level of risk. However, his cousin finally realized the advantage of Bitcoin because he agreed with OP.

If this is his first investment, maybe he could have started with less than 10% of the total available funds. Even 10% seems a lot to me because I can only afford to risk 3% tops on any single trade/investment. Now, your friend has all eggs in one basket.

Yes, it was likely the first time his cousin investing in Bitcoin. If he has invested in Bitcoin before, he won't be doubtful with Bitcoin. Anyway, his cousin has invested his money $20k in Bitcoin. So, it is useless now to advice him to invest 10% only into Bitcoin.

[Zigabel]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

For someone who has all of this skepticism for Bitcoin, that start up capital is quiet big, it may even be a reason for him to doubt even more, if he does have some good amount to invest with,  he could start with a thousand and when he sees the profit and is pleased with the dynamics,  he could scale up using DCA, that way it will appear more transparent for him and get him to build more confidence in Bitcoin,  clearing all skepticism.  Convincing someone on matters as this is highly not recommended,  I mean it will be better you suggest it to them, and if they show interest in getting to understand what it's all about,  you can aswell go further to teach them, and allow them make a decision based on what they have learnt,  keeping in mind the risk involved and the whole dynamics of Bitcoin, that way some sense or responsibilities will be embedded in them and not falling back at you tomorrow,  just incase.  It's better to suggest it than trying to convince them to invest in Bitcoin,  always have this in mind.

[Nothingtodo]

It was a good initiative to convince your cousin to invest in Bitcoin but you also need to understand that if your cousin faces a big loss from Bitcoin or some unfortunate situation happens where the wallet gets hacked, your cousin will blame you. So whatever you say, it is better to leave all the consent and investment matters to your cousin. But remember that the security of the wallet comes first. In this case, if you properly explain the risks to your cousin and if he understands it properly, then it is okay but it is not right to force him to invest just by convincing him.

[DanWalker]

This is why I don't like recommending Bitcoin as an investment to other people but if someone asks me about it, I'll share my thoughts.
I avoid taking the initiative to tell them to invest in it,  not just because I don't want to be blamed later if things don't turn out as expected, but also because I feel that I have to be responsible for it if I try to convince others to invest in bitcoin.
Even if we don't explicitly recommend a specific amount, we will still feel guilty if things didn't turn out well for them if they started to invest because our recommendation.

I'm not that scared of getting blamed tbh, cause I believe any grown adult knows what they're doing and owns their own financial decisions.

Same as you, what worries me more is when they invest on my advice and things don't pan out for whatever reason.  They could end up in a tough financial spot, while we might not be in a position to help them get through it or make up for their losses.

Even if they never blame me, I'd still feel guilty that my advice had a hand in their decision. To me that's a lot scarier than getting blamed.

[Makus]

It was a good initiative to convince your cousin to invest in Bitcoin but you also need to understand that if your cousin faces a big loss from Bitcoin or some unfortunate situation happens where the wallet gets hacked, your cousin will blame you. So whatever you say, it is better to leave all the consent and investment matters to your cousin. But remember that the security of the wallet comes first. In this case, if you properly explain the risks to your cousin and if he understands it properly, then it is okay but it is not right to force him to invest just by convincing him.

Exactly, I don't think op actually knows this, his friend is going to blame him if he incurs losses because he isn't mature enough to handle it mentally, that's the reason why I think that he should not have allowed him invest such an amount. $20,000 is actually a lot even for someone that is rich. Introducing more people to bitcoin doesn't mean convincing them to invest a huge amount of money when they are still beginners.

[Rengga Jati]

It was a good initiative to convince your cousin to invest in Bitcoin but you also need to understand that if your cousin faces a big loss from Bitcoin or some unfortunate situation happens where the wallet gets hacked, your cousin will blame you. So whatever you say, it is better to leave all the consent and investment matters to your cousin. But remember that the security of the wallet comes first. In this case, if you properly explain the risks to your cousin and if he understands it properly, then it is okay but it is not right to force him to invest just by convincing him.

If OP has explained the challenge and the risk of Bitcoin investment, his cousin must be aware of the potential losses. OP also should ensure his cousin to decide everything based on his cousin own consideration. So, his cousin won't blame OP once he gets losses in the future. Basically, any investment must be based on an individual own decision, it can't be based on other people's advice. It is because each individual uses their own money, so any risk will be borne by the individual himself. I personally think OP doesn't need to persuade his cousin. OP only needs to share the information about Bitcoin investment. In this way, OP will be safe and won't be blamed if there is bad thing happening with the Bitcoin investment.

[Solokan]

Many people are hesitant to invest in BTC because it certainly carries risks, and we don't know for sure what will happen to BTC in the future. However, if we look at the BTC cycle, many people have been very fortunate due to long-term investments in BTC, as BTC always creates new ATHs. However, I think you've done a good thing because if money isn't invested, it's potentially subject to inflation. By directing your cousin to invest in BTC, I think it's a good idea, as long as he's prepared to take the risks of investing in BTC for the long term.

However, I'm curious if your cousin's $20,000 is money he's prepared to lose or not. I believe investing in BTC requires money he's prepared to lose to feel comfortable.

[ndutndut]

This is why I don't like recommending Bitcoin as an investment to other people but if someone asks me about it, I'll share my thoughts.
I avoid taking the initiative to tell them to invest in it,  not just because I don't want to be blamed later if things don't turn out as expected, but also because I feel that I have to be responsible for it if I try to convince others to invest in bitcoin.
Even if we don't explicitly recommend a specific amount, we will still feel guilty if things didn't turn out well for them if they started to invest because our recommendation.

I'm not that scared of getting blamed tbh, cause I believe any grown adult knows what they're doing and owns their own financial decisions.

Same as you, what worries me more is when they invest on my advice and things don't pan out for whatever reason.  They could end up in a tough financial spot, while we might not be in a position to help them get through it or make up for their losses.

Even if they never blame me, I'd still feel guilty that my advice had a hand in their decision. To me that's a lot scarier than getting blamed.

What you said I quite understand and it is indeed scary. So the feeling of moral burden is indeed much heavier than the fear of being blamed especially when it comes to finances in this case investing in bitcoin.

Indeed, anyone who steps into the world of investing is responsible for their own decisions, but when we invite them or give advice, our suggestions become one of the factors that push them to take risks, so the feeling of guilt can still arise if the outcome is bad especially when they suffer significant losses even though it's their own mistake.

So the best approach is really to never take the initiative to get someone to invest, let alone guide them in making decisions. It's better to share knowledge or educate others about investing only if they're interested themselves or if they ask for it, and always talk about the risks rather than just the benefits so they can be more careful in making decisions. That way we can be honest in sharing our views without carrying unnecessary emotional or moral burden.

[Shinpako09]

Of course, after all it's bitcoin. He will see profitable results soon as long as he holds. But I just hope you have educated him about almost everything, like how it's normal for his $20k to become less when the price drops. Because if he can't control his emotions and decides to cut his losses, I'm pretty sure he will blame you for his losses.

As for me, I won't convince anyone near me to invest. If they approach me and are interested, I will explain it, but whether they invest or not is up to them.

[Emeraldo]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

As you have convinced your cousin to invest in Bitcoin, you should not forget to also convince him to learn about Bitcoin.
The price of Bitcoin will surely go up and down and this is the part which you have to explain to him so that he doesn't think that Bitcoin investment reward is easy to be made.

You need to educate your cousin how to protect his Bitcoin asset from scammers and third parties from having access to his wallet. You need to tell him what he needed to know to be a proper Bitcoin investor not only by buying and holding Bitcoin while waiting for profit. There are other things he needed to put into practice to protect his asset.

[Swordsoffreedom]

Many people are hesitant to invest in BTC because it certainly carries risks, and we don't know for sure what will happen to BTC in the future.

Bitcoin is just like gold or stocks. They all come with risks, and nothing is guaranteed down the road. Some people are hesitant to invest because not everyone is comfortable taking that risk.

However, if we look at the BTC cycle, many people have been very fortunate due to long-term investments in BTC, as BTC always creates new ATHs. However, I think you've done a good thing because if money isn't invested, it's potentially subject to inflation. By directing your cousin to invest in BTC, I think it's a good idea, as long as he's prepared to take the risks of investing in BTC for the long term.
However, I'm curious if your cousin's $20,000 is money he's prepared to lose or not. I believe investing in BTC requires money he's prepared to lose to feel comfortable.

Bitcoin has rewarded plenty of longterm holders in the past, but that doesn't guarantee it'll do the same going forward.
To me, the point isn't to talk people into buying BTC. It's to help them understand the risks and make their own call based on their financial situation.

[Bitcoin_people]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

If you explain to him well about the volatility and risks of Bitcoin and later he agrees then it is okay. And if you just lure him to invest in Bitcoin then I would say it will not be right at all because in every case of Bitcoin you have to tell him that if he understands everything and invests then it is his own will. If you force him then it will not be good at all if he plans to invest on his own will then of course it depends on him. I think as a new investor if he invests a lot of money and later if the market enters a recession then he will definitely become very emotional. So he must invest with a small amount of money in the beginning and gradually move his control and his mental state towards patience. When investing in Bitcoin, it should not be done for a short period of time but it is most important to invest for a long period of time. You can advise him on Bitcoin for investment and tell him without forcing him if he agrees and he takes his own risk then of course it is okay.  I think Bitcoin is a very volatile currency, so every person should be thoroughly explained about it before giving investment advice.

[Comeacross]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

AFAIC, you gave him the best options available for now. The problem is how long is he willing to let go of that money? Did you mind asking him how long he is willing to overlook the amount he want to invest? Because that's what will determine his profit in bitcoin. If he's after quick profit and can not hold for a long time, he should not consider bitcoin as option. Bitcoin is less risky if you have a long time mindset but the risk is high if you are investing with money you can not afford to lose or can not overlook for at least a full cycle. You don't need to convince him to invest in Bitcoin. Since he already has idea about Gold investment, he should go for that instead.