How to make two million dollars in three years, by purchasing one bitcoin as soon as possible?
At that point you should only be required to pay long term capital gains taxes.
Why not 20 million — if the dollar devalues fast enough? In Venezuela, I estimate that bitcoins are are well over million Bolivares each. Let’s check that math.
The price of bitcoin this second, is about $2300 and dropping — again. This was expected. That is equivalent to 23,000 Venezuelan Bolivares (VEB) — at the official rate. Not bad you say, but wait, there’s less… The official rates are nonsense.
20 Million Boilvares per bitcoin?
The unofficial price you will pay for one bitcoin in Venezuela is about 19,555,000 VEB. Let’s just round that off. To buy a single bitcoin in that Socialist paradise will set you back about 20 million VEB. That’s a big stack of paper and the last I heard, the government there was having trouble obtaining enough paper to print money.
So already, in some countries, you are a rich. Not really. One US dollar is equivalent to about 8500 VEB — street value. (See here for realistic conversions rates.) So you would still have, realistically, about $2300 bucks US. That is if a Venezuelan could really afford to buy a single bitcoin. Bummer.
Maybe the Venezuelan dictator can ask the motorcycle gangs currently stealing sugar from moving trucks in broad daylight, Mad Max style, to swipe a few rolls of paper and pass it along to the printing office. You know, in order to print more money. Wait — bad idea — toilet paper is also at a premium there. Actually, I think they are fresh out — a year ago.
But talk about optimism. John McAfee tweeted that:
Bitcoin would reach $500,000 in value in three years.
…or he will eat his own privates on national TV. Sure he will.
But McAfee might stick to his 10 million dollar bet. Why? Because according to this piece, McAfee is betting on a bitcoin fork. Not bitcoin. Did you catch that? He’s betting on some new type of bitcoin.
I’d say McAfee is going to lose 10 mil and a part of his anatomy. Well, maybe the 10 mil, unless he’s insane. Come to think of it — not the insane part — I want to see that bet. Any evidence he actually made it? That anyone has accepted?
Whether it’s just a publicity stunt we might never know. McAfee does say some pretty relevant stuff though. Take his Google comments. He wants to take them out. Why? For very good reasons. The fact that Google tends to obtain too much information about us. Kind of a errant, business-like, “Big Brother.” One that shares information with Uncle Sam when politely asked.
Don’t worry, your smart phone, computer and talking toy robot are not really watching you…that much. They have no idea that you are a Crypto-Head. And I say this in all seriousness and sarcasm. (Did I mention that the FBI is now warning us about our children’s toy-spies?)
But back to the bitcoin news. Does McAfee have a point? Will he retain his privates? Let’s just take that first question, in general.
Will bitcoin continue to increase in value over the mid to long term — if it does fork?
McAfee — and this guy ain’t no dummy — says yes. In fact, McAfee puts his faith in Bitmain CEO Jihan Wu.
In case you are still confused about a fork or two, look over the graphic provided here. It’s a great way to understand the basic SegWit, SegWit2, and UASF issues is a visual way. Things are definitely confusing this time around. So let’s ditch the acronyms and get back to our $2,000,000 bitcoin. I’m salivating, aren’t you?
Back to Bitmain and Wu. McAfee says Wu is a sharp guy and that the market will follow him with his brand of “bictoin,” whatever flavor that happens to be. The old traditional bitcoin, the one that was developed by Satoshi Nakamoto and supposedly improved by the core teams over the years, will take a nose dive — back to 40 bucks each. At that point, would it even survive? Can you imagine the bag-holders?
But that’s not all. It’s why I brought up the Venezuelan comparisons. McAfee thinks that as a result of his research, this “new” bitcoin will reach prices north of one million dollars. Maybe more than two million each.
So how will we, as consumers, jump ship, if Wu forks bitcoin (original flavor)? I’m assuming, but please don’t hold me to this, that we would simply begin using his systems — his wallets — with our old bitcoin. We’d sort of do a mini-fork.
I’m sure Wu will announce his fork plans and then us little people can then decide for ourselves, which way to go. With Big Daddy Wu or Old Bitcoin core. Maybe I’ll head over to Iota for spell anyway. I just like their style.
This brings up yet another question. Suppose we try Wu’s “New and Improved” Bitcoin (extra crispy flavor) and we don’t like it. Can we then switch our bitcoins back to original flavor? We’ll see.
In the meantime, keep your eyes on Crypto and maybe deal in Litecoin or Ethereum until this Wu thing settles down.
And one more thing — and this is where lowly little me differs with Master McAfee. I think he’s wrong. Why would anyone invest in Wu-Coin if the guy knowing exploited a flaw in bitcoin to speed up mining and make higher profits, at the expense of the community at large?
And one last thing. I hate McAfee’s Antivirus software. Always had trouble with it.
Until next my next post, have a Crypto day.