Bitcoin Investing
This project is a "Work in Progress". I am not sure of all the ramification and would advise anyone to contact an Accountant or Loan Professional before signing anything. I believe it is better to OWN some Bitcoin than to sit on the sidelines and think you have missed the opportunity. Public companies who own Bitcoin let you invest without the hassle of mobile phone apps, private keys, KYC and lost passwords. Your investment account can hold Bitcoin. If Bitcoin reaches USD$400,000.00 you are going to kick yourself. - D
You can save the hassle of completing a KYC questionnaire, downloading an app or creating an exchange account, storing your own private & public keys, risk being hacked, risk of theft, doing your own income tax calculations & spreadsheet and instead you can buy your Bitcoin with your own investment account. Your investment account will store, save, complete income tax statements and not charge you additional commissions.
GBTC Grayscale Bitcoin Trust ETF 643,600 Bitcoins
MSTR MicroStrategy Inc 125,000 Bitcoins
Coinshares XBT ETF 48.466 Bitcoins
TSLA Tesla Inc 42,900 Bitcoins
BTCC Purpose Bitcoin ETF 22,411 Bitcoins
BTCQ 3IQ Coinshares Bitcoin ETF 21,237 Bitcoins
BTCE ETC Group Bitcoin ETP 17,976 Bitcoins
GLXY Galaxy Digital Holdings 16,400 Bitcoins
QBTCBV 3IQ The Bitcoin Fund ETF 13,000 Bitcoins
VYGR Voyager Digital Ltd 12,200 Bitcoins
BITW Bitwise 19 Crypto Index Fund 10,784 Bitcoins
SQ Square Inc 8,000 Bitcoins
GDLC Grayscale Large Cap Fund ETF 7,346 Bitcoins
MARA Marathon Mining Group 7,400 Bitcoins
HUT-8 Hut 8 Mining Corp 4,700 Bitcoins
COIN Coinbase Exchange 4,400 Bitcoins
RIOT Riot Blockchain Mining 3,900 Bitcoins
BITF Bitfarms Ltd 2,646 Bitcoins
Confirm at www.barchart.com
Private Companies Holding Bitcoin
Block One - Private 140,000 Bitcoins
The Tezos Foundation 17,500 Bitcoins - Private
Stone Ridge Holdings Grp 10,000 Bitcoins - Private
Massachusetts Mutual 3,500 Bitcoins - Private
Public Companies that Mine ( Verify ) , own Crypto Currency Transactions AND had huge GAINS
MSTR on Nov 16 2020 MSTR was $199.56 but one year later was $759.87 or +283.91% increase
GBTC was $17.60 on Nov 16 2020 & $48.16 one year later or +173.12% increase
Marathon Digital Hldgs (MARA) - 10/07/20 was $1.87 on 10/06/21 was $38.14 = +1,949.14% One Year Increase
Hut 8 Mining Corp (HUT.TO) - 10/06/20 was $0.94 on 10/06/21 was $12.88 = +1,345.74%
Hive Blockchain (HIVE.VN) - 10/06/20 was $0.34 on 10/06/21 was $3.84 = +1,041.18%
Riot Blockchain Inc (RIOT) - 10/06/20 was $2.55 on 10/06/21was $27.11 = +973.78%
Canaan Inc ADR (CAN) - 10/06/20 was $1.85 on 10/06/21 was $6.66 = +260.11%
Argo Blockchain (ARBKF) - 07/20/21 ( 3 mos ago ) was $1.13 on 10/06/21 was $1.62 = +46.03%
Investing in Crypto
CoinMarketCap states that on Oct 2021 there were 6949 cryptocurrencies trying to become the next Bitcoin.
The more you invest, the more you will earn. If you invest $20 per month, it will take along time to see any large change. Working at a job and investing your excess pay will take a long time to notice any change. You will need to accumulate a pool of cash to have any appreciable gain. As Real Estate has risen to extraordinary highs, many homeowners have seen their humble home double or triple in value to where many homes are worth USD$1 Million and homeowners are mortgage free.
Having a Million Dollar home is impressive, but if you could re-mortgage your home and put USD$100,000. into the stock market, your mortgage repayment of that $100,000 would be $689.78 per month for 25 years to repay. From the list of crypto funds shown above, if you invested $100,000 in a crypto stock for one year ( 365 days ) you could increase your investment by:
With a mortgage expense of $689.78 per month X 12mo = $8277.34 repayment per year
$100,000 x 78% (EWO) will earn $178,000 /year (as above)
$100,000 x 231% (GBTC) will earn $231,000 /year
$100,000 x 369% (BTC) will earn $369,000 /year
$100,000 x 694% (ETHE) will earn $694,000 /year
$100,000 x 882% (GLXY.TO) will earn $882,000 /year
$100,000 x 979% (ETH) will earn $979,000 /year
There is no guarantee that this performance will continue to be duplicated in future years but if you believe all the experts who foresee bigger percentage increases are just beginning and they expect the percentages per year will become larger and larger as the public is acquainted to Bitcoin and all other Cryptocurrencies. Most people DO NOT know how to buy Bitcoin.
In 2020 - Bitcoin (BTC): +111.66%, Ethereum (ETH): +228.28%, S&P 500 : +8.35%
InvestThinking
Assume you re-mortgage your home for $100,000. more
Assume a $689.78 monthly payments for 12 months costing $8,277.36 per year
Assume your $100,000 increases by 200% (as above) or $200,000 divided by 12 months or $16,666 per month
Your First Month now returns you $16,666 and the 2nd Month equals $16,666 x 2 or $33,333 per month
The Third Month is 1st Mo + 2nd Mo + 3rd Mo = $16,666 + $33,333 + $49,999 or $99,998, in 3rd Month
If the crypto you invested in remains at 200% of what you paid, your $100,000 mortgage can be paid off by the 3rd month
HELOC – Home Equity Line of Credit is the difference between your home’s value and your mortgage balance—as collateral.
Home equity lenders place a second lien on your home, giving them rights to your home along with the first mortgage lien if you fail to make payments. A way to avoid this is to put a portion of the HELOC amount into a separate checking account to pay off the HELOC every month without fail.
To maintain a low interest rate on your HRLOC, you could put your crypto assets up as collateral on the loan, so you would have both your house and crypto securing the loan.
If you buy crypto from an exchange, bitcoin atm or un-regulated buying source you need to be comfortable that you can sell your crypto if the need arrives. Your house and HRLOC loan are reliant on selling your assets to pay off your loan with very little notice.
Using a HELOC loan may allow Equity Loan Tax Deductions
You may be able to deduct the interest on up to $750,000 of eligible mortgage debt (or up to $375,000 if you file separately)
HELOC Pros
Lower cost than many other types of loans
The ability to borrow a relatively large amount of cash
Potential tax breaks if you use the funds on the home
The safety of fixed interest rates on home equity loans
HELOC Cons
When you use your home as collateral, you shrink the amount of equity in your home
If the real estate market takes a dip, those with higher combined loan-to-value (CLTV) ratios run the risk of going “underwater” on their loan
You can also do what’s known as a cash-out refinance, in which you take out a new loan to replace the original mortgage. When your new loan is bigger than the balance on your previous one, you pocket the extra money.
====== Before Borrowing against your Home equity =======
Consider annual percentage rate (APR), Points and fees, term of the loan, reverse mortgage, second mortgage, certified pre-approval, the monthly payment, balloon payments, prepayment penalties, interest rate will increase if you default?, does the loan includes charges for any type of voluntary credit insurance, like credit life, disability, or unemployment insurance? ( https://bit.ly/2WDUSZK )
Hedge funds have used Grayscale to store their clients Bitcoin purchases
Recent Bitcoin Adoption
El Salvador Becomes Bitcoin Laboratory as First Nation to Adopt it as Legal Tender
Brazil looks at Bitcoin
PayPal accepts Bitcoin - 350 million users, 20 million active merchants
Venmo - 40 million active accounts
Square (SQ) bought $50 Million of Bitcoin
Publicly traded companies converting cash treasuries to Bitcoin
MicroStrategy (MSTR) bought $425 million treasury cash of Bitcoin.
Coinbase goes public (COIN)
Tesla (TSLA) Discloses $1.5B Investment in Bitcoin
Mastercard Will Begin Facilitating Cryptocurrency Transactions in 2021
Insurance Giant MassMutual Buys $100 Million of Bitcoin has $275 Billion assets under management.
Guggenheim Partners CIO Says Bitcoin May Go To $400,000 per coin
Hedge Funds use Grayscale GBTC - JPMorgan
JP Morgan, Morgan Stanley & Walt Disney all own digital assets.
Forbes 2021 - Bitcoin Price Prediction: Why Bitcoin Could Rocket To $400,000 In 2021 - https://bit.ly/3j3zqp0
2021 Morgan Stanley Europe Opportunity Fund owns 58,116 GBTC Grayscale shares
2021 Jan - Three Arrows buys $1.2 Billion of Grayscale's GBTC
2021 Oct SEC approves ProShares Bitcoin Strategy ETF (BITO)
2021 Oct NYSE Arca Files to Convert Grayscale® Bitcoin Trust into an ETF
Reasons to Use a Brokerage Account
Scammers steal more than $500,000 using Google Ads for fake crypto wallets = https://bit.ly/3o3nvsV
