Do you have a Crypto End Game?
The other day I had a conundrum where the wife was asking me "So When can I spend some of this magical internet money" and all I could say was "Not Yet"
But this got me thinking, if I'm holding all these coins what am I aiming for, whats the goal?
I don't expect to be a billionaire, or be driving around in those horrible Italian sports cars, but I do have some simple goals that will make it all worth while.
So this is what I plan on doing and how I can gain real world value for my coins.
The goals I aim to have crypto cover are as follow: Clear Mortgage, Clear all school fees, build a pool, various projects around house, retirement fund. So obviously each of these have a fairly known value, so I'm separating those values out and putting each item to an individual coin.
So if the portfolio I currently have, here is the current split and what they are being used for.
Steem - Retirement Fund
Power Ledger - Clear Mortatge
Ethos - School Fees
Verge - Pool
EOS - House Project 3
Bitshares - House Project 1
Horizon State - House Project 2
Bitdegree - ?????
Bankera- ??????
So how do I come up with this?? I'm not just pulling this out of my ass. The idea is to look at the reasonable perceived future value. Then with the coins I currently have will the volume cover the required costs of the projects? So for example, with Verge I currently hold about 5000 coins, and I honestly believe that this coin could reasonably reach $10-$15 in the next 12-18 months. So that gives me the $50-75K that would be required to build my pool and do all the subsequent jobs that that entails. So instead of holding forever and ever and never actually getting anything, I know that when this coin hits that value I sell and go do something of benefit to the family.
The same is true with the mortgage and school fees etc, if I can pay those off in bulk hits, that means I will have more liquid cash that I can invest further into new cryptos and then in the second round of wealth building that may make those millions and get those horrible Italian Sports cars.
When buying such a sport car you will need profits from another coin for all taxes, gaz, maintenance, ... :)
And the best part about your plan...
It keeps your coin invested, instead of pulling it out to spend. It'll end up being spent on exactly what it is intended for. That should also keep the wife happy. :) Nice post.
This is genius man!
I was basically going to hold all my stuff for at least a year to qualify for long term capital gains instead of short term capital gains with the IRS... but this is a much better and exciting plan man!
Do you add to your portfolio over time?
As jobs come up, or if the outlook changes I might add more to it, or consolidate to different coins to cope with changing circumstances.
The capital gain in Australia are pretty grey. My plan on most of these is to use LROS to directly pay for most of these items directly to the end users account, thus keeping the fiat out of my account and making tax much harder to apply.
"magical internet money"
LOL I love that expression
it describes cryptocurrency perfectly
Very cool and really good Idea. I've used some to buy some Silver, next I want to buy a hardware wallet.
My goals to this point are smaller than yours, but I have a feeling that as my holdings grow so will my goals to keep pushing me to work harder.
Firstly, you need to expect less, put yourself in one of the worst case situationsand be happy when you exceed that! Secondly, I reccomend setting your wife up with her own small amount, and tell her she can buy a dress today with those coins, or a car in a couple months with the same coins lol!!
No end game for me. Unlike everyone else I haven't delved into the rest of the magical internet money. I just use what I have like cash which means some is getting cashed out for reasons and the rest is sitting til I need it.
Your goals seem pretty reasonable, progressing all right on them?
Mortgage with any coin. Don't care much about the rest:)
I think you are going to need more coins - no way Verge is going to $10-15.
If I were to follow your "investment strategy" then I would have your big end game plays in equally big and long term investments - for me dApp platforms are the ultimately long term winners - so EOS (or having ETH, ADA, etc - make up the biggest part of your portfolio is essential).
Lastly, you went to the length to hide your balances and then posted a bit of information (your verge holdings) which effectively allows us to work out how much you hold of everything and your portfolio size. I hope it was just example - and not the real numbers - never good to publically share...