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> As one of the btc nouveaux rich, help me understand something I see reoccurring among my other btc-rich friends. Generally, when you're up big (and in some ca

> As one of the btc nouveaux rich, help me understand something I see reoccurring among my other btc-rich friends. Generally, when you're up big (and in some cases extremely wealthy), you diversify your investments in order to preserver your wealth. However, almost without exception my btc friends are such believers that they are holding on for the ride forever. That's the idea. However, you have to understand that if say SNAP stocks made someone rich, then diversifying makes sense, but if you got rich by some investment in some company Cayman Islands (but with a real business model), then you wouldn't just bring back the money or part of it purely for the sake of diversification. In other words, diversification away from bitcoin isn't in the same boat as diversifying away from real estate or some stock. From your friend's perspective, if they sell $100K worth of bitcoin, then is it possible that they might end getting on the radar of the govt and could be on hook for more than $100K? In addition to that, bitcoiners also believe that bitcoin hasn't reached it's peak, so when it reaches it's peak, they wouldn't have to sell their bitcoins (because every business would accept bitcoin). You don't even have to go to 'every business' part. Even if half of the businesses accept bitcoin, then they don't need to sell their bitcoins. Finally, if your nouveaux rich friends expect a Venezuala style situation, then, holding it further is the rational choice from their perspective.

matt_wulfeck 9y ago
> From your friend's perspective, if they sell $100K worth of bitcoin, then is it possible that they might end getting on the radar of the govt and could be on hook for more than $100K? You really have to be on the radar if you plan on reasonably enjoying that kind of wealth. There are plenty of legit ways of minimizing the tax burden of that kind of investment. Calling the top and bottom is a fools game. Diversification simply helps protect an entire asset class/sector from ruining you.
- splintercell 9y ago
  If you currently hold bitcoins which you mined, then they are a highly liquid assets because tomorrow you could flee the country and still have this wealth go with you. now I don't think most people think that they need to flee the country any time soon, but either way, it ISN'T the same thing as diversifying your non-crypto assets. I am merely trying to explain to whomsoever wants to know why these people won't sell their crypto even to diversification, please don't start yelling at me.

matt_wulfeck 9y ago

> From your friend's perspective, if they sell $100K worth of bitcoin, then is it possible that they might end getting on the radar of the govt and could be on hook for more than $100K? You really have to be on the radar if you plan on reasonably enjoying that kind of wealth. There are plenty of legit ways of minimizing the tax burden of that kind of investment. Calling the top and bottom is a fools game. Diversification simply helps protect an entire asset class/sector from ruining you.

splintercell 9y ago
If you currently hold bitcoins which you mined, then they are a highly liquid assets because tomorrow you could flee the country and still have this wealth go with you. now I don't think most people think that they need to flee the country any time soon, but either way, it ISN'T the same thing as diversifying your non-crypto assets. I am merely trying to explain to whomsoever wants to know why these people won't sell their crypto even to diversification, please don't start yelling at me.