Bitcoin is 10k again what are you going to do now?

Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes

Just curious what other investors think. Is this just another hype deal or is this a new reality for possible rent collection?

Side note, I tried to sell a house for bitcoin in 2013 with no takers or even one response.

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Terrell Garren

Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes

I'd sooner rent to a convicted felon with a 400 credit score, a tattoo on his forehead and a stolen car than deal with Bitcoin.

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Dave DeMarco
Rental Property Investor · Pittsboro, NC · Member since 2016 · 97 posts · 85 votes
7y
Originally posted by @Bryan Devitt:

Originally posted by @Zeke Tessmer:
Imagine a global currency that cannot be manipulated by a government. No one can print more of it. It is of a finite quantity. This is not standard. This is not what you have been conditioned for. This could decrease the control over the powerful and open the world up in ways unimaginable. Are you scared? You should be. Are you excited? You should be.
Umm but that isn't true. More Bitcoin are printed ever day, they call it mining. There are also many things in this world that are finite and hold zero value, there are also things that are finite and hold value that you should actually put money into like …. real estate!
0 Reply
Dave DeMarco
Rental Property Investor · Pittsboro, NC · Member since 2016 · 97 posts · 85 votes
7y
Incorrect.
There are approximately 21,000,000 Bitcoin. Most have been bought or lost. Once the remaining Bitcoin are mined, that’s it. There will be no more. It’s NOT like the US dollar that can keep being printed again and again. Not exactly like gold in that you may be able to dig deeper to find more.
Limited supply of an extremely useful technology = DEMAND.
4 Reply
Zeke Tessmer
Rental Property Investor · Australia · Member since 2019 · 36 posts · 44 votes
7y
It sounds like many may be missing the bigger picture. The greater benift of cryptocurrencies is not to take advantage of a quick gain. It is a revolutionary way exchange. If we consider how this could change the world for all of us, not just ourselves, it becomes much bigger.
3 Reply
Tiwanna Wallace-Agbenyegah
Member since 2019 · 9 posts · 6 votes
7y
@Terrell Garren Awww...that’s too bad, I’ve made over 6k off of my investment in bitcoin, in just the last month 🤷🏽‍♀️
2 Reply
Terrell Garren
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
7y
Originally posted by @Tiwanna Wallace-Agbenyegah:

@Terrell Garren Awww...that’s too bad, I’ve made over 6k off of my investment in bitcoin, in just the last month 🤷🏽♀️
Wow, what a great argument you made. First opportunity I’ll sell my RE and buy Bitcoin.
5 Reply
Storm S.
Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
7y
@Zeke Tessmer you mean gold? Bitcoin in theory can be manipulated.
0 Reply
Tanner Marsey
Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
7y
Nothing.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Dave DeMarco:

Originally posted by @Craig Jeppesen:
I will stick with real estate and stocks. I am an investor not a speculator. Good luck.
Not to pick on you Craig but an "investor" should be riding this bull market to some ABSOLUTELY RIDICULOUS PROFITS. ;)
My ROI so far is 52.5%. It has CRUSHED my dividend portfolio. Started buying at $3700 near the bottom through shear dumb luck. Been taking profits along the way and will do so until the trend ends. I plan to pull my principle investment sometime soon and keep a balance of it. If any of you are traders (day or swing) you have missed a wet dream.
I would highly suggest looking into the technology and at least making an attempt to understand it. This technology is very interesting IMO.
probably a dumb question but do you pay tax on the gain.. I know I made some money on the Loonie over the years with currency arbitrage.. ?? just curious how that works.. so if you pull any out you have to pay tax you just cant pull your basis out.. right ?
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Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @Bryan Devitt:

Originally posted by @Matt R.:
Originally posted by @Bryan Devitt:

There is zero chance in hell I would take rent in a "currency" that can have 2X swings in a month. Who would ever think basing your business and income off of something so volatile is a good idea? In the next year the odds of it hitting $2k and $20k are about the same, I'll take a hard pass on it until it is stable
Right on, although I think there are payments systems that convert to USD on the spot, but IDK tbh. From what I understand that is how it works for the NYC landlords/schools or Lambo dealers and Tesla that take bitcoin.
There are apps to convert to USD immediately at the going rate, minus fees but then you're not paying in Bitcoin, you're paying in USD, so why have the Bitcoin in the first place?
I hear ya, I think the fees are negligible but I guess it would be a option not to convert or convert portion.
0 Reply
Will Dixon
Accountant · Corte Madera, CA · Member since 2018 · 73 posts · 88 votes
7y
@Bryan that’s almost insulting to compare your friends buying bitcoin at 20k on credit cards to Dave’s story. May as well draw the parallel that nobody should invest in real estate because SWIM bought a house in 07 and was underwater shortly thereafter
1 Reply
Will Dixon
Accountant · Corte Madera, CA · Member since 2018 · 73 posts · 88 votes
7y
@Tiwanna “already made” sounds like you’re still holding it. Unrealized gains =/= making money
3 Reply
Morgan PorterBusiness Member
Property Manager · Richmond, VA · Member since 2018 · 36 posts · 19 votes
7y
@Matt R. Collecting rent in bitcoin is different than holding a ton of bitcoin. I’d accept bitcoin if that’s how they want to pay however I’d charge a slightly higher conversion rate and convert it into USD right away, so I’d come out on top. It’s very liquid and easy to exchange with Coinbase or one of the other exchanges. To date, though, I’ve never had a tenant ask to pay with bitcoin.
FYI I am holding a small amount of bitcoin and other alt coins, but not much. Most of what I hold actually came from a short stint of mining years ago. Overall, it’s paid off for me but I wouldn’t recommend anyone buy in at these prices. Most likely the prices will swing down again soon.
3 Reply
Matt Millard
Lewisville, TX · Member since 2015 · 344 posts · 264 votes
7y
I can’t wait to see how it transforms real estate with blockchain tech. I have used it mostly transactionally & made several grand buying things off Amazon. I still hold some smaller ones to follow like litecoin but am much more of a silver & real estate Invdstor.
0 Reply
RC Lupton
Contractor · Denver, CO · Member since 2019 · 12 posts · 4 votes
7y
@Matt R. He who controls the Media....He who controls the Media
and the Currency? Have fun living in a Fiefdom fellow Serfs
2 Reply
Jonathan R.
Investor · Wichita, KS · Member since 2017 · 584 posts · 813 votes
7y
Will it perform like digital gold? That is the question. Someone mentioned in a previous post- what will happen to it when the economy pulls back? Will people be rushing into Bitcoin, or will they be selling their Bitcoin to have some cash? Or both. Physical gold is hard to beat when it comes to the level of security people feel when they own it during a crisis, at least for now.
For the record, I have a Coinbase account and have been in and out of crypto over the last couple years. Now is probably not the time to fomo (fear of missing out) into Bitcoin, wait for a pullback. There have been many pullbacks, there will be many more. Buying at year long highs right now is dumb. I like @Dave DeMarco approach of staggering in every few weeks, but right now the space seems more like trading than long term investing, at least with any meaningful amount of money. Right now if you have money in I’d ride it, when the next disaster is announced I’d take money off the table, when it stabilizes near what you think is a bottom get back in, if another disaster is announced sell and take a small loss, rinse and repeat. You have to keep your eye on the total market cap and compare that to news that is being announced in real time, it can be exhausting. It’s a very small asset class right now for any feeling of safety. It may get big or stay small for a long time... I for one can’t wait to see how the next financial crisis (which I think is coming fairly soon) impacts the Bitcoin/crypto market.
@Jay Hinrichs yes, you are supposed to pay taxes on gains, though it’s like the wild Wild West. How hard is it to determine where you are at when you sell one crypto and move into another, then sell that one and move into another and another. Coinbase (the major US crypto exchange) did send some kind of notice to me but I don’t think it was very specific. And I don’t know whether I’m up or down to be able to report properly... lol.
PS it does appear there is a trend that many are turning into what is called a Bitcoin maximalist, meaning Bitcoin is the big dog crypto and all or most of your investment in the space should be in Bitcoin. Though I do also like the platform crypto’s like Etherium, Stellar Lumens, etc. They allow other crypto currencies to build and launch on their platform (like Facebook in that businesses build their businesses on Facebook). You want to learn what you can about what you are buying, just like you would any other investment.
1 Reply
Ryan Siwinski
Specialist · Fort Washington, PA · Member since 2018 · 16 posts · 7 votes
7y
@Matt R. Not buy it whatsoever.
2 Reply
Kris L.
San Antonio, TX · Member since 2019 · 930 posts · 836 votes
7y
I would rather accept payment in chickens and cows than Bitcoin.
3 Reply
Geraldine Roa
Member since 2019 · 1 post · 1 vote
7y
I refused to invest my hard earned money on something so skeptical like bitcoin. You don't have any way to predict the future shift
1 Reply
Account Closed
Real Estate Agent · Charlotte, NC · Member since 2018 · 4 posts · 1 vote
7y
@Matt R. There’s a company called Propy that uses cryptocurrency and blockchain to handle real estate transactions (From start to finish). The National Association of Realtor has actually been investing money into the company and have started to work with them.
1 Reply
James De Stefano
Real Estate Agent · Houston, TX · Member since 2017 · 292 posts · 233 votes
7y
Originally posted by @Zeke Tessmer:

Imagine a global currency that cannot be manipulated by a government. No one can print more of it. It is of a finite quantity. This is not standard. This is not what you have been conditioned for. This could decrease the control over the powerful and open the world up in ways unimaginable. Are you scared? You should be. Are you excited? You should be.
This sounds like a disaster. Government is full of corruption and drama through out history.
But putting the future of currency fully in the hands of corporation and hackers.... welp...... good luck with that after 10 years
0 Reply
John Macharia
Flipper/Rehabber · Richardson, TX · Member since 2019 · 4 posts · 2 votes
7y
@Matt R. Am not ready for it yet..too much of a risk
1 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
Is never accept Bitcoin for any payment. Cash is still king!!
0 Reply
Bryan Devitt
Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
7y
Originally posted by @Zeke Tessmer:

It sounds like many may be missing the bigger picture. The greater benift of cryptocurrencies is not to take advantage of a quick gain. It is a revolutionary way exchange. If we consider how this could change the world for all of us, not just ourselves, it becomes much bigger.
It will get there at some point in the future but how many coins are out there now. Maybe it is Bitcoin, maybe it is Facebook's that they just started but unless you can see the future, you're gambling way more than you would be with other investments right now
0 Reply
Bryan Devitt
Contractor · Oxford, MA · Member since 2018 · 807 posts · 745 votes
7y
Originally posted by @Jonathan R.:

Will it perform like digital gold? That is the question. Someone mentioned in a previous post- what will happen to it when the economy pulls back? Will people be rushing into Bitcoin, or will they be selling their Bitcoin to have some cash? Or both. Physical gold is hard to beat when it comes to the level of security people feel when they own it during a crisis, at least for now.
For the record, I have a Coinbase account and have been in and out of crypto over the last couple years. Now is probably not the time to fomo (fear of missing out) into Bitcoin, wait for a pullback. There have been many pullbacks, there will be many more. Buying at year long highs right now is dumb. I like @Dave DeMarco approach of staggering in every few weeks, but right now the space seems more like trading than long term investing, at least with any meaningful amount of money. Right now if you have money in I’d ride it, when the next disaster is announced I’d take money off the table, when it stabilizes near what you think is a bottom get back in, if another disaster is announced sell and take a small loss, rinse and repeat. You have to keep your eye on the total market cap and compare that to news that is being announced in real time, it can be exhausting. It’s a very small asset class right now for any feeling of safety. It may get big or stay small for a long time... I for one can’t wait to see how the next financial crisis (which I think is coming fairly soon) impacts the Bitcoin/crypto market.
@Jay Hinrichs yes, you are supposed to pay taxes on gains, though it’s like the wild Wild West. How hard is it to determine where you are at when you sell one crypto and move into another, then sell that one and move into another and another. Coinbase (the major US crypto exchange) did send some kind of notice to me but I don’t think it was very specific. And I don’t know whether I’m up or down to be able to report properly... lol.
PS it does appear there is a trend that many are turning into what is called a Bitcoin maximalist, meaning Bitcoin is the big dog crypto and all or most of your investment in the space should be in Bitcoin. Though I do also like the platform crypto’s like Etherium, Stellar Lumens, etc. They allow other crypto currencies to build and launch on their platform (like Facebook in that businesses build their businesses on Facebook). You want to learn what you can about what you are buying, just like you would any other investment.
Bitcoin cheerleaders claim it is replacing gold, but it moves in the opposite direction. Gold has value for many reasons, it is useful and (kinda) rare and for ages everyone has decided that it has value. People claiming that it is rare and controlled, therefore it is valuable can go collect Beanie Babies again and tell us how it works out. Things only have value as long as enough people agree it has value and are willing to bid against each other to obtain it.
0 Reply
Chris Gray
Rental Property Investor · Orlando, FL · Member since 2016 · 22 posts · 17 votes
7y
Absolutely nothing.
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