What can you do with 200k$?

MrNimbus said:

Which countries is this possible/legal for westerners and non-residents?

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Chimerat said:

Buy apartments in your thai girlfriend's name and jump

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splishsplash said:

I put 50 to 70% of my liquid wealth into bitcoin.

People will be asking the question you've asked for the next 5-10 years, then finally, they'll decide to buy some bitcoin. Meanwhile, all the institutions and wealthy families will have bought up a ton of it and the media will announce that bitcoin is a sure thing, and all the scared people will buy in at that point and make small 10% returns per year on their savings at best.

What's amusing is that people will throw their life savings into shitcoins that their favorite influencer promotes, but are highly skeptical of the most technologically mature crypto coin in existence that has grown year on year for the past 14 years. Completely missing everything going on behind the scenes like the financial accounting standards board voting a new rule into place that mandates companies to now use certain cryptocurrencies on their balance sheet at fair-value, among which bitcoin is one. This completely changes the game for public companies since even if they had the capability to buy bitcoin, it was deterimental for them because it had to be written up as an intangible asset.

Here's a quote from deloitte that elucidates on why this is bad.

"According to US GAAP, acquired digital assets (intangibles) should be accounted for at cost, subject to subsequent impairment, as appropriate. That means that when the asset is impaired, the company must write down the value on its books. The converse, however, is not true. The value of such an asset cannot be written up when, and if, the price goes up or a previously written-down asset subsequently recovers. As a consequence, for accounting purposes, it is virtually impossible to book any ROI on digital assets held as investments." - https://www2.deloitte.com/ch/en/pag...-should-bitcoin-be-on-your-balance-sheet.html

In practice bitcoin was accounted for as an indefinite-lived intangible asset. This means it isn't subject to amortization. Instead, every year an assessment must be done for impairment and the book price adjusted.

Here's a snippet from a pdf talking about how to do accounting for bitcoin. It's complex, but if you want to really understand what's going on, take the time to understand it.

Full url - https://www.bdo.com/getmedia/f4154f...-and-Receipt-of-Cryptocurrencies.pdf?ext=.pdf

The summary is as follows :-

Company bought bitcoin at $30k to $27k per coin.

Because of volatility, they have to now report a lowered book value due to impairment.

This means, bitcoin is higher than they bought it for, but on their books, they have to report it as lower, so it looks like a loss.

For a public company, this is not good. It'll affect their share price.

Now, they can account for it at fair-value accounting, which is the actual price it's trading at.

Other problem for public companies is how do they hold bitcoin? Physically, how do they do it? Do you give the wallet to the CFO? Bit dangerous, no? The CEO? The chairman of the board? Who?

This makes it very difficult for public companies to deal with.

This problem now is: how do public companies physically buy it? They couldn't really. At least not easily..

But..

https://cointelegraph.com/news/blackrock-spot-bitcoin-etf-nasdaq-clearing-firm
Oh, what's that..

The biggest hedge fund in the world has been approved for a spot bitcoin ETF..

What does that mean?

It means public companies can now buy bitcoin, by investing in an ETF at blackrock.

Ah, but, but.. What if bitcoin goes to 0, zomgs!! I'm not sure, uh, I'll wait.. OMG ELON IS TWEETING ABOUT A NEW DOG COIN!!! WHERE IS MY CREDIT CARD.


NOTE:

This is a BIG NOTE.

Don't fucking go panic buy and go into a FOMO-frenzy.

The reason bitcoin is up 20% is not because of the ETF. It's because of the NEWS ABOUT THE ETF.

Bitcoin is NOT going to surge to $330k as this hype-article proclaims - https://www.thestreet.com/crypto/ma...says-approval-will-drive-330000-bitcoin-price

This is shite. This is not how the world works.

There are not "insiders" who just happen to spill the beans to retail traders. What the media says is ALL PLANNED to manipulate you.

What is more likely is bitcoin is being hyped up for a crash so the institutions can buy in lower.

What will ACTUALLY happen is a slow adoption of bitcoin by institutions, causing an increase in the growth of bitcoin than we've seen to date, driving it well beyond any status of a hype coin as it becomes the global reserve asset class of institutions.

It wouldn't have reached $1mil-$10mil without this. It's been held up by a steady amount of whales in it that have been holding for a while, but without institutional adoption, it would never reach the level that was originally hoped for and eventually, everyone would lose faith and it would crumble.

The institutional investors are CRUCIAL. The money is in the corporations.

There's also other advantageous I could briefly write about here as to why public companies will want to buy.

Basically, cash is trash. If you're a public company with $500 mil in cash, you're going to be losing about $40 mil per year in buying power with current USD inflation rates. Real inflation is about 8%, not the reported 3-4%.

This means companies do one of three things.

1) Stock buyback (Apple does this)
2) Acquisitions(most do this)
3) Dividends(very few do this)

Dividends don't drive the stock price up. That's why companies don't do it. There's very little advantage for them. They're returning cash to investors.

Stock buybacks, they buy up stock, so this pleases early investors who want to cash out. They then destroy the stock, reducing the total supply, and this forces the stock price to go up, making current investors and past investors happy and bringing in NEW INVESTORS. Keep the merry round going.. Round and round it goes.

Acquisitions are risky and can and do backfire on companies. It's also annoying and not the purpose of the company. It forces a company to grow bigger and more unwieldy. Harder to run. Big companies often fall. Very few of them survive for a long time. You just THINK they do because you're all young. If you were 200 years old you would have a different perspective. (I'm not 200 btw. Or am I?) From your perspective companies have been around your whole lives, and that creates the illusion they are unbreakable and forever. They are not.

Bitcoin as a capital reserve asset lets companies safely make profit, save it, increase the value of the company as it grows, and beat inflation. They are far more stable and not subject to failure due to being overleveraged. They have the money to invest WHEN they need it and not just to get rid of a deflationary currency.

Another thing to point out is that stock buyback rewards investors who hold for a long time. Dividends reward all investors including new ones.

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