Who’s investing in cryptocurrencies like Bitcoin, Ethereum, Litecoin?
We prefer low fee broad index funds for investments—too many unknowns with cryptocurrencies for my tastes—seems like a lottery ticket.
H had done some mining and spent a ton on a computer to do so (much more than he would have for a “regular” computer). We spent more on electricity running the computer than he ever got mining, plus very few places around here accept crypto currency. The experience taught him a bit, satisfied his curiosity and ended up with us net losing a few thousand dollars. We avoid cryptocurrency now.
Stick with the low-cost or no-load index funds. Agreed.
Every time I think about investing in bitcoin I decide the price is too high. Then it goes and increases 5x and I repeat the same cycle 
Investing in individual stocks provides plenty of adrenaline for me. 
We planted some Dutch tulip bulbs. They will be making a comeback!
Two years ago my son invested in Bitcoin and other cryptos and we all thought he was crazy. He is now sitting on over $2 million. We never invested in it and are all really regretful to say the least. My son is absolutely obsessed with it. That’s all he talks about.
Until the currency is locked in by being a exchanged for a less volatile currency, imho it’s a paper profit, like stocks. It’s great if he has a paper profit but to reduce risk, he may wish to cash some of it in and diversify by buying other assets like real estate or index funds, etc.
And he can’t bring himself to sell right?
My son invested in bitcoin and made a fair amount (we are talking maybe a thousand or so, not too much). He can take the risk while he’s in school because we pay for everything related to school, including living expenses and food, etc. He’s an accounting and finance major, so I figure it’s good for him.
My D made money (maybe $200+) at Vegas and $150 at a charity raffle but still minimizes her experiences to both. Knowing a bit about crypto currencies but limiting losses seems prudent, especially to folks interested in $$$/finances
No, he probably won’t sell it. He’s mining crypto etc. He’s up all night trading. He’s all in. I don’t get too involved because it’s not really my business. He has a good job as a software engineer at a tech company that I would like him to keep. He is always threatening (to us lol) to leave his job and just trade. He and a friend are developing an app for crypto. I told him I’d like him to stay at his job until he’s thirty. He’s twenty seven now. I just don’t want him making any sudden moves based on this.
^^I think I would try to convince my son to sell some of that, maybe 500K-a million. That way, no matter what happens, he has gotten a ton of money off of it, and it hasn’t been for nothing. Yet he still has a lot. Then again, I’ve been known to take my profits too early and miss the big upticks.
My son is really into bitcoin, he just hosted a meetup in SF. But he has invested very little cash in it, though he has the money and is obviously fascinated with bitcoin. I’ve asked him to tell me when to invest, and he’s said that he thinks now is a bad time, because there is quite a bit of potential changes, warring factions, and you could lose money. I should wait a couple of months at least, and see what happens…you really have to be in the know, in order to figure out the timing.
In the meantime, it just keeps going up!
Cryptocurrencies are risky. Profit isn’t profit until you sell. It’s just paper profit until then. Agree that he should take some of the profit, but as you said, its not your call…
He’s never been up for taking advice. Also, I wouldn’t be able to live with myself if it turned out to be the wrong advice. I figure that he knows so much more about it than we do. He is “in the community” and when I say he’s obsessed it’s an understatement. I’m just upset that we didn’t buy any.
Ah well, I guess it’s totally on him then. He will be able to provide for himself well, no matter what happens.
What jym said… I probably still have a copy of our brokerage statement that showed our (very paper) seven digit net worth. The year was 1999, and the only holdings in that account were options of a tiny co. for which we have not paid a penny yet… I am counting my lucky stars that we weren’t dumb enough to cash out those options and hold onto the stock into the next year which would have triggered a ginormous AMT. That would have ruined us financially because the next year by the tax time the market already crashed, and the stock went poof.
Hope you son has paid capital gains on his holdings…
But… going back to profitable stuff. I was able to plant my last bag of Dutch tulip bulbs today. They will be awesome come spring - if the squirrels don’t get them this winter.
@1214mom, if my kids had the money to gamble on any investments in college, I’d be having them cover more of their expenses. They can invest in their own income once college is paid for.
Bitcoin can be stolen, too, and you’d have less recourse than with other types of investments:
I made a 100%++ gain in 2014 in from 288 to 654 and was happy.
To see it at 9400 i of course wish I would have held.
300k would be nice now.
He seems aware of the risks of holding onto it (all the tax ramifications and the risks of being hacked). He has no financial responsibilities at this time (none, not even a car). To me, he seems to be in a good position to take the crypto ride.