Hi guys. I have a friend who's parents are looking for alternatives and want to invest money into something other than their IRA account. They have a fixed IRA with about $100K, but they are unsatisfied with the miserable amount of interest they're getting. I mentioned to them that bitcoin is a possible alternative and one they can look into. Do you agree? Do you guys consider bitcoin a reliable and stable investment for long term holding(5-10yrs)? Is it safe to assume the only direction(barring a few dips here and there) bitcoin will eventually go from here is up? Do you foresee it going below $10K, or even $9K ever again? Is it even possible to see the lows we saw a few months ago(ie $3500) ever again?
Please give me your thoughts. IRA or Bitcoin for the long term?
both. 80% ira 20% btc. 80k + 20k
my logic is as follows.
btc will bust or grow like mad.
ira will grind out 1 to 2% a year.
so in ten years if btc goes 3x you have 60k
if ira grinds 2% a year you have 96k
total of 156k
if btc busts or does really bad. it may be only 10k a loss
but the ira grinds out the 2% and you have of 96k this plus 10k means 106k
so the two cases above are 156 + 106 which is 262 / 2 = 131 average
if you do all 100% ira at 2% you get 120
so a gain of 31 in two cases averaged 6 on the low side 62 on the high side.
or a gain 20.
so I would hedge 80 ira 20 btc.
and review in. 10 years.
note disclaimer
i am not a professional. my writings are not advice.
so if you do all ira and are angry at a failure i am not to blame
if you do 80 ira + 20 btc and are angry i am not to blame.
if you do 20 ira + 80 btc and are angry i am not to blame.
lastly if do 100 btc and are angry i am not to blame.
but for me 80 ira 20 btc is my personal choice for myself.