So cryptocurrencies have been hot lately and, as I've said before, for good reason: blockchain technology (or something similar) is the future. Governments will start using it for currency and other things, the banking/trading sector will adopt it (or die a slow, painful death as blockchain-based companies chew into their marketshare), and it will overall make our financial and legal lives much better.
But as bullish as I am on the future of crypto/blockchain, I do not think most coins are a good investment. I think the vast majority of coins and tokens are overpriced at the moment, and a choice few are underpriced (in the long term).
So I did a thing...
I decided to sell about 1/3 of my crypto portfolio and use it as a down payment to buy a 2-unit apartment that I will house hack ("apartment" hackl?) with.
House hacking is when you buy a multi-unit property, live in 1 unit, and rent out the rest. The income from the rented unit(s) offsets (or in some cases totally covers or even exceeds) your interest payments and/or home maintenance costs... thereby making it possible to live with very low housing costs, or even 0 housing costs.
And for all my crypto purists, If I could have bought the apartment I'm trying to buy for crypto, I would have. But unfortunately we are not there yet as a society so I had to convert the crypto to good, old-fashioned fiat.
How did I see the crash coming??
Considering I sold these coins only a few weeks ago and the fact that many of them are now down ~50% or more from then, I may look like kind of a genius. I assure you, I am not.
Yes, I thought many coins were overpriced.
Yes, I thought there was a good chance their prices would crash any day now.
But my timing was nothing but pure luck, my friend.
Plus: I've been wrong before. Quick side story: I sold over 1 BTC a few years ago and bought a car with the money. It was a ~15 year old Audi A4 Avant, and I have it to this day; I love that car. Had I waited only a few years, I could have sold the same amount of BTC and bought a brand new, well-equipped A4 (I probably wouldn't do that anyway, though, new cars are almost always a huge waste of money).
But regardless, I don't regret selling the BTC then, and no matter what happens: I won't regret selling it now.
And I do not consider another 10000%+ growth from any number of the cryptocurrencies I sold now completely outside the realm of possibility.
So If I didn't see it coming, why the f--- did I sell?
... If believe the crypos I hold have potential, and even a 10000% rise is possible, why the hell did I sell?!
Simple: because I see an opportunity to take a big profit and put it towards something that will do great good for me — buying an apartment — so I'm taking the opportunity.
A lot of my fellow cryptocurrency investors today have never truly lived through a bear market (myself included). I think many of us are quite naive to think everything will only keep going up as it has in recent years, and I also consider this shift I'm making from crypto to real estate a bit of a hedge against that naivete. I feel I may even subconsciously possess that naivete to some extent.
FOMO is for losers.
Now I look like a genius for selling, but everything I sold could bounce back next week, or go even higher... and then you would think I would regret these sales, but you know what? I won't. I hope everything bounces back. If you paid attention:
- I didn't sell all of my crypto. I still hold plenty of crypto.
- I still believe strongly in the overall future of blockchain and a few coins/tokens on the market today.
So am I afraid of missing out on potentially becoming a millionaire and being able to buy a property outright without breaking a sweat? Bitch, please. If all goes well, in the next few months to a year I will have an apartment for myself that I can call home, and that for me right now is huge.
Slightly off topic, but what about this?
Food for thought: if you really believe in crypto, you do realize it's quite a large mistake to think of any crypto coin/token it in terms of how much USD it trades for, don't you?
Thank you for reading this post! Believe it or not, you just made my day. 🥰 How can I make yours? 🤔