What are you saving your cryptocurrency investment for?
On the cusp of what could be life-changing value growth, crypto-holders contemplate the potential of their portfolios...
In a recent survey, young Bitcoin hodlers planned to hang on to their Bitcoin until it reached a value of at least $190 000 USD. A mere 8% of those surveyed said they would use their Bitcoin for any kinds of daily transactions.
It is clear that Bitcoin's function, at least for now, is to be a long-term store of value - an investment with hopes of large returns.
So, let's say Bitcoin hits this magical $190 000...now what?
What will hodlers finally spend their windfall on?
For most, it will likely be to pay off debt. Student loan debt is higher than ever. A big Bitcoin gain could liberate many former students from these payments.
What about consumer debt? For many, finally getting ahead of those credit card or car loan payments would enable an amazing level of freedom to change financial lifestyles. It is true that much consumer debt is due to spending beyond one's means, so there is no guarantee that a Bitcoin windfall will resolve this issue. It might change things, temporarily at least, for many over-extended consumers.
Mortgages. Imagine being able to wipe out a mortgage early from your crypto-investment. This is a dream for many around the world. This would seem to be one of the more prudent uses of a large return on investment.
Of course, people tend to be greedy. Often, once debt is paid off, consumers take on more debt by telling themselves they can now "afford" more, and therefore, "need" more. There is no guarantee that a fortuitous windfall of funds will eliminate habitual debt problems.
So, besides debt elimination, how else might Bitcoin fortune-finders use their newfound wealth?
Many might choose to spend it on more frivolous things -- holidays, lambos, that new phone, whatever. This could be a boon to the economy and generate a great deal of employment if prices reach this sort of level.
Of course, if it hits a value of $190 000, isn't it likely to continue to $200 000? $500 000? When is it ideal to "cash out"? Save some, pay off some debt, buy some frivolous stuff?
What do you think? What are your plans for your $190 000 Bitcoin?
sources:
http://static.highsnobiety.com
https://www.cryptocoinsnews.com
in reality - when we get to the "moon" it's not like you have to sell everything down then and there. if you expect that it has further growth, you might sell a portion down to pay off loans, house, car, etc.
For me I'm currently tracking my net worth including my cryptos. I'm watching the number go up which is nice, but if i ever got into the position where I could completly eliminate all family debt (ie. mortages paid off), then I would absolutely jump into it.
If i could work and not have to be concerned with mortgage, that would be life changing for my family.