Who's brave/stupid enough to invest their life savings into Bitcoin?

[Flashman]

The core inflation rate really over estimates inflation because people will adjust their habits when prices adjust. For example when the price of chicken increases they will buy beef instead, or when the price of gas goes up they will consolidate their trips to the store

Riiiiight, if there's no bread, let them eat cake.

[picolo]

I don't care what official figure is, it's BS.

Could be wrong about what you can actually get in a savings account though, if I've seen 2% it's probably one of those $50,000+ term deposits.

According to bankrate the highest interest rates that are publicly available (that they know about) is 1.05% APY on savings accounts. It lists one offer for a 5 year CD with a $100,000 minimum deposit with a APY of 2.4%.

The core inflation rate really over estimates inflation because people will adjust their habits when prices adjust. For example when the price of chicken increases they will buy beef instead, or when the price of gas goes up they will consolidate their trips to the store

People spend less if price have gone up and spend more if price have gone down.

[Q7]

If I will lose anyway by playing safe, why should I play safe?

That's true, I think headline inflation is massaged, and it's truly more like 5% PA, leading to losing nearly half the value of your money in 10 years, meanwhile you can get a maximum of about 2% interest in "high yield" savings accounts.

I am pretty sure both of your numbers are overstated. Inflation over the past year has been roughly 1.7% and interest rates on savings accounts tend to max out well under 1% (probably closer to .5%).

The return on things like bonds and stocks however are vastly exceeding inflation so if you invest your money in these kinds of investments (as you should if you have a long term timeframe) you will overall gain money after inflation

Yes and no. But over the years ive noticed purchasing power with the fiat that i own getting weaker. You can say average inflation is 2% but if i measure using basic necessities like for example eggs which cost probably like 15 cents a year ago and is now 20 cents, that doesn't actually reflect annual inflation of 2%

[leex1528]

Why is everyone so concerned about what inflation is doing?  The rate inflation is going up compared to what the average salary is a joke.  There is a reason we are struggling to make a living in America, it is a complete joke, the minimum wage should roughly be 12/hr with everyone making a lot more in general, economy sucks!

[adaseb]

I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

[slaveforanunnak1]

I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

thats very stupid and scary.
people, provide a service for BTC FFS

[picolo]

I actually know a few people locally that invested all their life savings OR maxed out their credit cards buying BTC or buying GPUs or ASICs. Its sad actually.

thats very stupid and scary.
people, provide a service for BTC FFS

It was very risky and a bit foolish but they could end up making a fortune in a few years.

[Sergios]

No to investing in "Bitcoin" is in "the currency". Buyuing up Bitcoin to invest in Bitcoin companies and start ups, that is a different story Bitcoin itself is good for day trading if you have enough of it.   

[leex1528]

Tons of people went way over board with trying to buy Bitcoin, I told them it was silly and to only buy what they don't care about losing in fiat.  A lot of people took that is they don't care if they lose everything in Fiat.  Well you still got bills to pay and all that, and if something crashes you would rather be safe than sorry...

[Muuurrrrica!]

I bitcoined my entire bitcoin in bitcoin and all I can bitcoin is that it's been bitcoin

+1

[dmugetsu]

Too much risk to take

So....Nope

[Wendigo]

The guy that posted the reddit story about turning his savings into coins after losing his job is famous but I doubt it he is still on the bitcoin bandwagon and probably converted most of it into fiat.

[picolo]

The guy that posted the reddit story about turning his savings into coins after losing his job is famous but I doubt it he is still on the bitcoin bandwagon and probably converted most of it into fiat.

When did he convert his savings to bitcoins? Before November 2013?

[leex1528]

The guy that posted the reddit story about turning his savings into coins after losing his job is famous but I doubt it he is still on the bitcoin bandwagon and probably converted most of it into fiat.

If he converted anytime after like December of 2013 he lost tons of money.  That hopefully isn't the case and he got tons of money but I don't know the actual story.

[Daniel91]

The guy that posted the reddit story about turning his savings into coins after losing his job is famous but I doubt it he is still on the bitcoin bandwagon and probably converted most of it into fiat.

If he converted anytime after like December of 2013 he lost tons of money.  That hopefully isn't the case and he got tons of money but I don't know the actual story.

You never know what really happened (I hope that this guy earned good money).
It seems that people who joined early and cash out early, made huge profit but people who joined later and waited, now don't have any profit.
Of course, this can change if bitcoin start to rise again this year, but I doubt that it will be possible to earn so good money with BTC as early adopters could in the begging.

[picolo]

The guy that posted the reddit story about turning his savings into coins after losing his job is famous but I doubt it he is still on the bitcoin bandwagon and probably converted most of it into fiat.

If he converted anytime after like December of 2013 he lost tons of money.  That hopefully isn't the case and he got tons of money but I don't know the actual story.

You never know what really happened (I hope that this guy earned good money).
It seems that people who joined early and cash out early, made huge profit but people who joined later and waited, now don't have any profit.
Of course, this can change if bitcoin start to rise again this year, but I doubt that it will be possible to earn so good money with BTC as early adopters could in the begging.

You probably won't make 100 000% on your money in 2 years but you could make 1000% if Bitcoin goes up to a market capitalisation of 30 Billions and you buy now.

[cakebet]

There was a post on r/bitcoin about a guy who did this and we never heard back from him..

[picolo]

There was a post on r/bitcoin about a guy who did this and we never heard back from him..

It was in April 2013 : http://www.reddit.com/r/Bitcoin/comments/1kpsi5/i_put_all_my_life_savings_into_bitcoins/ http://bgr.com/2013/04/05/bitcoin-retirement-investment-414950/

So he paid around 100$ per BTC and may have cashed out some at 500$-1000$; he is massively up.

[leex1528]

There was a post on r/bitcoin about a guy who did this and we never heard back from him..

It was in April 2013 : http://www.reddit.com/r/Bitcoin/comments/1kpsi5/i_put_all_my_life_savings_into_bitcoins/ http://bgr.com/2013/04/05/bitcoin-retirement-investment-414950/

So he paid around 100$ per BTC and may have cashed out some at 500$-1000$; he is massively up.

That is awesome!  I don't think I would ever have the balls to do that, I just couldn't imagine if he ended up losing everything, he would be bankrupt!  Well hopefully everything worked out great for me, say he bought around 100per BTC.  He would have had roughly 300BTC and if he sold at 500, Low balling, he would have ended up with $150,000 for a $120,000 worth of profit....wow. 

[Demille]

There was a post on r/bitcoin about a guy who did this and we never heard back from him..

I think investing so much money in bitcoin is very very risky and I personally wouldn't do it, but without risks in business or investments you'll never get anywhere. I still think there is massive potential for profit from bitcoin so if he's still holding he could make big gains in the future.