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What would you do with a bitcoin windfall? (lemmy.world)

submitted 3 months ago* (last edited 3 months ago) by EvacuateSoul@lemmy.world to c/asklemmy@lemmy.ml

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I'm not a true believer in crypto, but I used to play around with it. I have received a 5-figure USD sum of bitcoin from the MtGox settlement, and I'm considering my options. It is a true windfall. It was worth maybe $100-200 when I used to play daytrader and shop silk road with it.

We are on track for early retirement as it is, but my "smart money" intuition says pay the long-term capital gains and invest in funds, how we do everything else. More money earlier is always good.

My gambler side says to withdraw some maybe, but split the rest into a half dozen likely candidates for someday real world crypto use which may take off. I don't stay up to date on them anymore, so this would take some real research.

The weird Trumpy stuff going on with BTC makes me think it couldn't hurt to hold through the election in case prepper types panic buy it lol.

My wife says it's unexpected so just leave it as a high-risk part of our whole portfolio, but I worry she underestimates the risk and scamminess of it all.

Update: I sold the account down to 0.1 BTC today. I may sell more later on. Thanks everyone for your input.

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[–] kambusha@sh.itjust.works 4 points 3 months ago

I'm not sure how much the bitcoins compare to your overall wealth, but it's generally ok to put 1-5% into high-risk ventures. Bitcoin is worth something at the moment, because people trust that it is worth something. It doesn't matter that you can't really use it for anything at the moment (i.e., it's not more efficient for transactions, or moving money across borders, and you definitely can't eat it, or make anything with it). Given that major institutions and retirement accounts (and even countries) are investing in bitcoin via ETFs or directly, you could say that there is a level of trust in bitcoin that it will maintain & increase in price.

Long story short, it's ok to have a small portion of your overall portfolio in a high-risk/high-reward venture. So you may consider keeping some of it in bitcoin, and converting the rest into low-cost index funds.