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I made ~50 million in crypto. By far the most satisfying part was buying a house each for my friends and family. Having a paid off house is really a massive str

by 42069 5y ago

I made ~50 million in crypto. By far the most satisfying part was buying a house each for my friends and family. Having a paid off house is really a massive stress reducer for most people which imho gives you the 90% of the financial freedom of being super wealthy.

post_break 5y ago
That's the dream right there. I've got 20 years to go on my note for my house and I just think wow, once this thing is paid off I've got it made in the shade. Good on you for helping them, much better investment than just buying them cars or gifts.
ibaikov 5y ago
Wonder if people like you think about funding startups that are not attractive to traditional investors. I'm talking about funding outsiders with something that doesn't sound very exciting, but might work out
- jessaustin 5y ago
  If this person wanted to hear about that sort of opportunity, they probably wouldn't have been so careful about secrecy.
- adventured 5y ago
  > funding startups that are not attractive to traditional investors It's a great way to lose a lot of money. It's why venture capitalists prefer to play with other people's money. You better absolutely love playing god with start-ups, because there is a hellish nightmare that can go with allocating capital to high-risk new businesses, tracking everything, being responsible for it, enforcing legal agreements, dealing with lawyers and accountants, dealing with conflicts, watching people do incredibly stupid things with your money, and on and on and on it goes. And you can't just hire people to entirely remove you from the annoying aspects, because that's an even faster way to lose a lot of money.
  - ibaikov 5y ago
    Exactly, so if people don't really care about being rich - they might do this like some sort of charity. I understand there are lots of charlatans and con artists, but I think basically giving away money this way is a good way to make progress in research etc as a civilization. We need to fund boring stuff and randomly give money to people who can't raise from VCs.
Reubend 5y ago
I agree with you, although I think it would be really easy to go overboard here. Did you have people come to you asking for houses? Maybe I'm being cynical, but I think that news would spread really quickly if someone in my friend group was buying houses for several people.
- 42069 5y ago
  No, they kept it quiet. My close friend group is pretty distinct and tight so there wasn't really anyone on "the cusp".
  - spuz 5y ago
    That's probably a good clarification to make - some people have more friends than others so when you say you bought them each a house that could be just 4-5 people or 40-50. Good for you that you can share your good fortune with your friends without it affecting your relationship negatively.
    - antisthenes 5y ago
      No one has 40-50 close friends. Certainly not friends who you'd consider buying a house for.
- bcrosby95 5y ago
  Maybe I just have good friends but I feel like this fear is overblown. I made a decent amount of money from a startup (enough to pay for a wedding + eventual retirement at a standard age). As part of this windfall I paid for a vacation for me and my close friends. No one ever came asking for money. No one asked if we could do it again. Friends that didn't go have never asked for me to pay for their vacations. And if they did I would just say no.
mintiquity 5y ago
Was that before taxes, or did you pay taxes on a CEX only? Not that I am accusing you or expect you to admit even pseudonymously to tax evasion (and not that I judge you or know what your country’s laws are)—more just curious how the crypto-wealthy typically handle this.
technothrasher 5y ago
At my current ~2% mortgage interest rate, why do I want to pay off my house? I make more putting that money into investments returning me much better than that. I don't think the super wealthy keep their money needlessly tied up in real estate like that.
- celticninja 5y ago
  Because you are in a position to get a low interest mortgage, not everyone is. Then you have to consider that giving someone ₱250k to buy a house is different to buying someone a ₱250k house.
- zsmi 5y ago
  The super wealthy keep their money tied up in lots of things, including real estate. It's called diversity and investing in lots of things is significantly easier when you're... super wealthy.
  - WalterBright 5y ago
    If you invest in an S&P 500 index fund, you're diversified into 500 companies. Very easy to do.
    - ghaff 5y ago
      The S&P 500 is certainly more diversified than individual stocks. But it's still only the largest US companies. By itself, it's only a somewhat diversified portfolio.
      - WalterBright 5y ago
        There are plenty of other index funds for whatever floats your boat. Even real estate funds. There's no problem being diversified.
    - zsmi 5y ago
      Unless of course you invested in 2016 and it's Mar 2020 and it turns out you need the money now. You'll have no gain and fours years lost. Diversification: It's All About (Asset) Class https://www.investopedia.com/articles/financial-theory/08/asset-class.asp https://www.investopedia.com/articles/financial-theory/08/as...
lucasmullens 5y ago
> By far the most satisfying part was buying a house each for my friends and family. How did you decide who made the cut-off of being a "friend"? Seems like every acquaintance you ever had would suddenly become a fake friend if you were giving away free houses, no? Genuinely curious what that was like.
- ascar 5y ago
  Isn't that easily solved by only including the friends you had before the windfall? I certainly know who I would pick for my best men and that's the same people that I would consider in a situation like that.
- 42069 5y ago
  4 friends, minimum 20-30 year friendships, been either best man or groomsmen at each other's weddings, gone through lots together, been roommates, always been loyal and cool to each other.. not hard really
hanniabu 5y ago
If you don't mind, how much were the houses on average and how many did you buy for friends? Are you still invested in crypto?
- 42069 5y ago
  6 houses, 600-900k each, at the time I was worth maybe 20 million, still have 2/3 net worth in btc/eth now worth 50 million
GlassOwAter 5y ago
Sweet username.
huntermeyer 5y ago
Did you have to pay a gift tax for each friend? Did each friend have to pay income tax on the money/property you gave them? How was the house actually paid for, did you give the friends cash or did you buy the house for them and somehow gift it to them?
vymague 5y ago
It's just my overactive imagination. But how do you protect yourself? Like from robbers and other people with ill-intent.
hncurious 5y ago
I'm curious about how this works in practice. Did you just pick and buy houses for all of them? Or did they pick and you paid? If the latter, did you set some kind of price range? Also, do you worry about any future expectations they might have?
- 42069 5y ago
  Just gave them enuff money for a decent house each. Some already had a house they liked and paid off the mortgage and had a bit left over.

by 42069 5y ago

post_break 5y ago

That's the dream right there. I've got 20 years to go on my note for my house and I just think wow, once this thing is paid off I've got it made in the shade. Good on you for helping them, much better investment than just buying them cars or gifts.

ibaikov 5y ago

Wonder if people like you think about funding startups that are not attractive to traditional investors. I'm talking about funding outsiders with something that doesn't sound very exciting, but might work out

jessaustin 5y ago
If this person wanted to hear about that sort of opportunity, they probably wouldn't have been so careful about secrecy.
adventured 5y ago
> funding startups that are not attractive to traditional investors It's a great way to lose a lot of money. It's why venture capitalists prefer to play with other people's money. You better absolutely love playing god with start-ups, because there is a hellish nightmare that can go with allocating capital to high-risk new businesses, tracking everything, being responsible for it, enforcing legal agreements, dealing with lawyers and accountants, dealing with conflicts, watching people do incredibly stupid things with your money, and on and on and on it goes. And you can't just hire people to entirely remove you from the annoying aspects, because that's an even faster way to lose a lot of money.
- ibaikov 5y ago
  Exactly, so if people don't really care about being rich - they might do this like some sort of charity. I understand there are lots of charlatans and con artists, but I think basically giving away money this way is a good way to make progress in research etc as a civilization. We need to fund boring stuff and randomly give money to people who can't raise from VCs.

Reubend 5y ago

I agree with you, although I think it would be really easy to go overboard here. Did you have people come to you asking for houses? Maybe I'm being cynical, but I think that news would spread really quickly if someone in my friend group was buying houses for several people.

42069 5y ago
No, they kept it quiet. My close friend group is pretty distinct and tight so there wasn't really anyone on "the cusp".
- spuz 5y ago
  That's probably a good clarification to make - some people have more friends than others so when you say you bought them each a house that could be just 4-5 people or 40-50. Good for you that you can share your good fortune with your friends without it affecting your relationship negatively.
  - antisthenes 5y ago
    No one has 40-50 close friends. Certainly not friends who you'd consider buying a house for.
bcrosby95 5y ago
Maybe I just have good friends but I feel like this fear is overblown. I made a decent amount of money from a startup (enough to pay for a wedding + eventual retirement at a standard age). As part of this windfall I paid for a vacation for me and my close friends. No one ever came asking for money. No one asked if we could do it again. Friends that didn't go have never asked for me to pay for their vacations. And if they did I would just say no.

mintiquity 5y ago

Was that before taxes, or did you pay taxes on a CEX only? Not that I am accusing you or expect you to admit even pseudonymously to tax evasion (and not that I judge you or know what your country’s laws are)—more just curious how the crypto-wealthy typically handle this.

technothrasher 5y ago

At my current ~2% mortgage interest rate, why do I want to pay off my house? I make more putting that money into investments returning me much better than that. I don't think the super wealthy keep their money needlessly tied up in real estate like that.

celticninja 5y ago
Because you are in a position to get a low interest mortgage, not everyone is. Then you have to consider that giving someone ₱250k to buy a house is different to buying someone a ₱250k house.
zsmi 5y ago
The super wealthy keep their money tied up in lots of things, including real estate. It's called diversity and investing in lots of things is significantly easier when you're... super wealthy.
- WalterBright 5y ago
  If you invest in an S&P 500 index fund, you're diversified into 500 companies. Very easy to do.
  - ghaff 5y ago
    The S&P 500 is certainly more diversified than individual stocks. But it's still only the largest US companies. By itself, it's only a somewhat diversified portfolio.
    - WalterBright 5y ago
      There are plenty of other index funds for whatever floats your boat. Even real estate funds. There's no problem being diversified.
  - zsmi 5y ago
    Unless of course you invested in 2016 and it's Mar 2020 and it turns out you need the money now. You'll have no gain and fours years lost. Diversification: It's All About (Asset) Class https://www.investopedia.com/articles/financial-theory/08/asset-class.asp https://www.investopedia.com/articles/financial-theory/08/as...

lucasmullens 5y ago

> By far the most satisfying part was buying a house each for my friends and family. How did you decide who made the cut-off of being a "friend"? Seems like every acquaintance you ever had would suddenly become a fake friend if you were giving away free houses, no? Genuinely curious what that was like.

ascar 5y ago
Isn't that easily solved by only including the friends you had before the windfall? I certainly know who I would pick for my best men and that's the same people that I would consider in a situation like that.
42069 5y ago
4 friends, minimum 20-30 year friendships, been either best man or groomsmen at each other's weddings, gone through lots together, been roommates, always been loyal and cool to each other.. not hard really

hanniabu 5y ago

If you don't mind, how much were the houses on average and how many did you buy for friends? Are you still invested in crypto?

42069 5y ago
6 houses, 600-900k each, at the time I was worth maybe 20 million, still have 2/3 net worth in btc/eth now worth 50 million

GlassOwAter 5y ago

Sweet username.

huntermeyer 5y ago

Did you have to pay a gift tax for each friend? Did each friend have to pay income tax on the money/property you gave them? How was the house actually paid for, did you give the friends cash or did you buy the house for them and somehow gift it to them?

vymague 5y ago

It's just my overactive imagination. But how do you protect yourself? Like from robbers and other people with ill-intent.

hncurious 5y ago

I'm curious about how this works in practice. Did you just pick and buy houses for all of them? Or did they pick and you paid? If the latter, did you set some kind of price range? Also, do you worry about any future expectations they might have?

42069 5y ago
Just gave them enuff money for a decent house each. Some already had a house they liked and paid off the mortgage and had a bit left over.