Post
Topic
Board Economics
Re: choose an option
by
Grizzly888
on 31/10/2023, 14:22:34 UTC
I choose option C "$480,000 in BTC"

Now let me explain why. Option-A is bad because you lock a huge money for 8 years, during this period of time real value of each $1 goes down (due to the inflation). Therefore, as a result, after 8 years I will have less purchasing power with $480k. Option-B is similar to A, you receive fiat, in each country process of getting money differs, but it doesn't change the main point, except the tax on the win you also may receive some extra attention from the media, because of the win in the lottery, what is not good for obvious reasons. Option-D also has many drawbacks, in some countries after you have sold the house you need to pay the taxes on the money that you got, and the most important - your house might cost $480k because of the bullish housing market, but when situation returns back to normal, you may loose XX% of the house value + it takes time to sell house for a good, fair price. Therefore, as you see, here is loads of work to do before you get your money. Option-E is also bad, because there is no specific info about type of business, explanation of reasons why business worth $480k, maybe it's due to raw materials that it has, which might be not liquid enough to sell them and get cash. Also business requires good management experience in the industry in which business operates (possibly you get the restaurant business, but you do not have any experience in that field and here appears a big chance of ruining the business and therefore any another option from the list makes much more sense). Option-F with the gold is also not the best, but probably second I would choose. Gold is established asset with high liquidity, but it requires some expenses related to storing it somewhere (in the bank for example), therefore you need to choose what to do. First option is to sell it, quickly get the money and start thinking what to do with it. Second option continue storing it, but with expenses, which you will not have if you choose to hold Bitcoin. That's it, I think. My option-C gives huge range of choice, you may quickly sell some/all BTC and get your dollars (by the way, you can even cash out anonymously what is difficult to do with house, gold, lottery etc.), you also may continue holding it without any expenses related to its storing. So for me option-C is definitely the best.