I watched a video recently about a guy who had a million dollars in bitcoin, and wanted to know what to do with it.
And the advice was all about selling it, and getting back into cash in the bank. And then buying real estate, bonds and stocks. What the advisor was correct about is that "you have a million dollars", you are set for life. You can stop working.
What the advisor was not correct about is that the old system is going away. Leaving your wealth in bitcoin is one of the best, safest, future proof, places to leave your wealth.
Of course, the advisor was afraid of crypto going to zero. And believe me (and many others on this platform) that 90% of cryptos out there are going to zero. They are a scam, a meme that didn't take off, or a project that never got enough support. No matter, they will be gone, cleaned out.
That said, crypto is the future. Fiat dollars are the past. And the fiat, if it doesn't hyperinflate into nothing, will just become forgotten.
Its a new world, and we need to think of investing in new world terms.
The old, safe assets, are going, going, gone
Stocks - All the large, mostly evil, corporations will be gone within 50 years. Many, much sooner. BigPharma will go soon. BigBanks soon after. So, investing in the stock market is just waiting for the collapse, and then the obliteration.
Bonds - People are already talking about defaults. Govern-cements are going to start breaking up. The fiats around the world are collapsing / inflating to nothing. Putting money into bonds is just waiting for the biggest rug-pull
Rental Property - Komifornia is already passing rent controls, and this will make rentals worthless, as in, unable to be sold, because you can't profit off them. So, they will end up owned by the state. (or Black Rock) And with boomers selling off, all of sudden, there will be a glut of vacancies on the market.
Derivatives - Do need say much? They are an economic time bomb. There is nothing there. Just a matter of time, and then foop.
Commodities - This one takes a bit to explain. What happens is that the COMEX is going away, and thus, your investment will go away. The commodities themselves will still be commodities, however the market is going to restructure, and if you are sitting on a commodity that requires the structure to sell/move/use it, then it becomes fairly worthless. And, as i have said in another post, "Don't bet on other people's food". Buying and sitting on a wheat contract, while people are starving, because the price will go up… there will be a lot of bad karma. And you will probably lose your wheat through theft.
Gold - This one will probably stick around longer than the others, but gold will fall to the value of a pretty, yellow metal. Several things will happen. First, we will find out just how much gold is laying around in vaults. 10 - 100x the amount that is stated as "all the gold in the world". Next, we will see a technology where gold is just vibrated out of rock. And, lastly, crypto is mathematical scarcity, and easy to keep and send all over the world. Gold, as money, will lose its luster.
All of these "safe assets" are places you do not want to rely on for a retirement fund.
They are as safe as "money in the bank". Which will be shown to not be safe at all, here shortly. So much bank money will go foop.
How can you take profit from crypto?
This is a difficult question, because they only new asset that is really known is crypto. There will be a lot of new technology coming out, and you could invest in those, but by the time they get to the big corps, newer technology will already be upon us. So, basically, you need to find individuals actually making the things.
The nice thing about this coming tech is that it will allow you to live off-grid anywhere in the world. So, you can invest in a homestead, and a power source, and a water source, and an internet source. And, then, basically, you will be set for life (after you build and farm your greenhouse)
So, all i can say is to take crypto profits into the sure-thing cryptos.
Watch for the ones that are actually being used.
A strange question: "What will happen to Tether when the dollar starts really inflating or collapsing?"
Will Tether lose its peg to the dollar as the dollar shoots further and faster to zero?
If a financial crisis happens where the bank dollars are lost, locked up or stolen, then Tether may be worth far more than a dollar. (and may stay that way as Tether can't keep up with the dollars self-destruction)
Many people sure have this mentality that Crypto is going to zero and what they forget to note is that since all this while it’s still going up and up each cycle. I do agree with your sentiments about taking profits and living off the grid as you’re set for life. For me id keep investing into other assets like tether because I don’t think it’ll be able to collapse like the dollar even though it’s pegged with it.
The majority of people believe that cryptos are a fad, a niche, magical internet money that geeks love…
They do not see it as the future, or the thing that could "End the Fed" tomorrow.
But, since it is soooo very volatile, where do you take profits? How do you take profits?
We just have to avoid giving back all our gains to the Fed.
I agree with you.
I sometimes fall into that category of thinking crypto might go to zero lol. It's still relatively new and many of them seem to lack fundamental value. The space as a whole will definitely evolve in unexpected ways in the future, hopefully there will be pockets of sustainable value that will keep existing for a long time.
Love the answer to the strange question about Tether. It's definitely something that I ponder about :)
It is really easy to fall into old ways thinking.
You know, invest in a well diversified portfolio of stocks and bonds…
All of us would like to take profits and keep those profits.
However, we could be three months from a full bank collapse.
All your fiat dollars go poof. (of course it could be a year and three months…)
So, it is a whole different field. A whole different question.
Where do you store your money?
We don't get the luxury of just falling into old ways.
Meaning we have to find new ways, potentially building them from scratch. I think this will be a pressing issue for those in the crypto space next year, where to store the profits made from the bull market.
Some however, have already made the decision that it will be on Bitcoin, given its institutional adoption and inherent features.
With 1 mln being set for life ?
You gotta be old
yes, i am.
I can remember 2008
However, i could retire on 1m if the financial system would stay the way it is today
I hope so