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re: How much should I invest in BTC today?
Posted on 5/7/24 at 9:18 am to dualed
Posted on 5/7/24 at 9:18 am to dualed
quote:
I was thinking of just ripping out 30k of my 401k and going for it.
I'm bullish on crypto and BTC...but I wouldn't do this.
Find the money from somewhere else to invest into BTC.
0
Posted on 5/7/24 at 9:25 am to kc8876
quote:
And why did you wait till it’s right below its all time high to all of a sudden be interested in bitcoin for the long term?
FOMO?
Posted on 5/7/24 at 9:54 am to dualed
I’m probably 75% net worth tied to BTC or BTC related equities and I’d advise not touching your 401k if that’s all the assets you have. Start a new investment into BTC if you want but judging by your comment if losing your arse previously, that tells me you don’t know how to buy and just sit back and wait, so you will probably frick it up again when BTC inevitably drops 50+% again
Posted on 5/7/24 at 10:09 am to dualed
Posted on 5/7/24 at 10:16 am to LSUSLU106
quote:
If you want some exposure to Bitcoin possibly just buy some of it in one of the new ETF's if you have Fidelity the ticker is "FBTC".
Is there a thread that talks specifically about all the new Bitcoin ETFs that one can look at? I have Fidelity, so just looked up FBTC and its $55.84...is that per share like a stock?
Another interesting thing that would be interesting to understand how it works better is the notification on FBTCs page:
"Fidelity Investments is waiving the fee to invest in FBTC. Starting August 1, 2024 Fidelity will began charging an expense ration of 25 basis points"
I'm assuming any FBTC bought prior to 8/1 one get that charge...maybe? And anyone able to explain a scenario of how this will be charged? Ie...if I bought 10 shares of FBTC after 8/1...how does that 25 basis points get charged? Thanks.
Posted on 5/7/24 at 10:17 am to dualed
quote:quote:
$4 million per Bitcoin? Surely this is a troll
Not a troll. Did you ever see it being as high as it is now?
FYI, it was higher than this back in '21, then dropped to under $20k for awhile. That panic was fun to watch.
And the price today is about 13-14% lower than its all-time high from earlier this year.
Posted on 5/7/24 at 11:16 am to HagaDaga
quote:
'm assuming any FBTC bought prior to 8/1 one get that charge...maybe? And anyone able to explain a scenario of how this will be charged? Ie...if I bought 10 shares of FBTC after 8/1...how does that 25 basis points get charged?
Just like any other ETF, Fidelity will just deduct this seamlessly from the share price. Until August 1st there is no fee. After August 1st, the fee starts being charged.
I think they deduct the fees daily. This is such a tiny fee that you won't even notice it.
If you only buy 10 shares of FBTC at today's instant price check of $55.79, you own $557.90 of FBTC. Assume that price remains constant for a year after August 1, 2024. By August 1, 2025 you will have paid $557.90 x 0.25% = $557.90 x .0025 =$1.39475 = $1.40 in fees.
So for an average FBTC price of 10 shares = $557.90 held for 12 months, once they start charging fees, you will pay $1.40 in fees. If they do this daily, your fees will be $1.39475/ 365 = $0.00382123287671 of fees per day.
For every $10,000 of FBTC that you own for a year, you would pay $25 for each 10,000.
If you own $10,000 of FBTC and it's price rises in a straight line to $20,000 in 12 months, then your average shares held price is $15,000. So your annual fees add up to $25 x 1.5 = $37.50. You wouldn't even notice the fees since it comes out of the share price.
This post was edited on 5/7/24 at 11:33 am
Posted on 5/7/24 at 11:19 am to dualed
quote:
I’ll be 34 in two months. 140k in my 401k is basically all the retirement money I have. No other accounts other than what my wife has. I see projections right now of BTC at $4M+ per coin by 2050.
So my thinking is right my 401k looks to be worth between 1.5M-2.0M by my earliest retirement age (55). If I were to buy even a half of a bitcoin today, then that could be worth more than my 401k account alone at the end of the same time period.
I haven’t been in the space in a while because I lost a lot of money in it. I bought and sold at the wrong times when I was younger and I got sour to everything. But clearly at this point BTC isn’t going anywhere. It wouldn’t have lasted this long otherwise. So should I just rip out some money and call it being better diversified?
I was thinking of just ripping out 30k of my 401k and going for it. I don’t see the 30k compounded being worth more than 200k at the end of my career. But it could be worth over a million if I parked it in BTC.
Thoughts?
Your position in btc should be sized with your understanding of it. If you're asking here instead of reading everything you can get your hands on I'm going to guess that a 1-2% allocation is probably appropriate for you. Lots of people yolo in without doing the work and get shaken out during their first 20-30% drawdown. Those that do survive those "mild" bull market shake outs inevitably dump at the depths of their first bear market when it nukes 70+%.
LINK /
This^ is a program that allows you to plug in various allocation sizes with different equity baskets see how it affects things. Btc in small allocations, counterintuitively, tends to smooth out the vol of equity portfolios over time. Fun fact: pick any 4 year time period since 2009 and a 2% btc 98% cash portfolio has outperformed the S&P over the same period.
At the bare minimum, read this.
LINK
Posted on 5/7/24 at 12:47 pm to dualed
The key word in your post is “invest”
No one “invests” in bitcoin. It’s purely traded on speculation based on the greater fool theory. It literally goes up because people buy it because people buy it because people buy it. It’s musical chairs.
It has no intrinsic value.
If you want to use play money to trade it then fine but don’t “invest” anything
No one “invests” in bitcoin. It’s purely traded on speculation based on the greater fool theory. It literally goes up because people buy it because people buy it because people buy it. It’s musical chairs.
It has no intrinsic value.
If you want to use play money to trade it then fine but don’t “invest” anything
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