06-23-2021, 01:24 AM
You Can be at a Loss Holding Crypto, but if you Hold US Dollars, You're Guaranteed t
<!-- SC_OFF --><div class="md"><p>and it's gets worse and worse the longer you hold USD. Thanks to inflation. </p> <p>If you held USD in a bank in 1981. Say $1,000,000. You held for 40 years. That's $1M is now worth $333,333.</p> <p>That's because of buying power.</p> <p>Your $1 now was worth $3 in 1981. Especially if you HODL it in a bank. </p> <p>Many years ago, it was common people recieved a tiny interest in the common bank. Now it's opposite. You pay them service fees once a month. </p> <p>This is why they say dump into a 401K so it builds interest. But even that hurts. </p> <p>The annual ROI on 401K is 3-8%. Let's say you average out 5.5% ROI over 40 years. </p> <p>Let's start with year 1 in 1981 when you were 25yrs old.<br/> You decide to make a one time investment into 401K of $5000. </p> <p>After 40 years , that $5K you dumped in is appx $42,550. That's about an 851% ROI HODLing for 40 years straight.<br/> Looks good on paper? Sure it does.</p> <p>but thanks to inflation, that $42,500 now was only $14,200 back when you started HOdling So really, your ROI after 40yrs is 283% not 851%. </p> <p>Let's not forget tax when you withdraw because it now counts as yearly income. Especially if you're forced to withdraw early for whatever tragic reason. So your ROI is even worse than 280%. Might be 200% or less. </p> <p>But What If you're forced to retire the year 401Ks tanked 50% In 2008? during housing bubble. </p> <p>There were many people that year forced to retire for X reason and had to withdraw. </p> <p>Pretty shitty deal for something that was supposed to be safe. 40 years Hold??? </p> <p>You're not even guaranteed to live for 40 more years. You might drop dead before you see your money. </p> <p>But with crypto, I may be at risk for being at a loss but I also have chances to get 283% ROI in 4 days during bull runs nevermind 40 fuuking years, and even in bear markets. </p> <p>You won't get that Holding USD in a bank. </p> <p>If someone tells you crypto is risky because you can lose. Ask them if they are good at saving money in the bank. </p> <p>It's a trick question. Usually cockiness will kick in and they will openly admit they save money in the bank. Good. </p> <p>Laugh it off and walk away. </p> <p>These people don't know what the FK they are doing and if they did they would be buying cryptos. </p> <p>USD is a medium of exchange only. Don't hold that. Spend it.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/JuicySpark"> /u/JuicySpark </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o5d78y/you_can_be_at_a_loss_holding_crypto_but_if_you/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o5d78y/you_can_be_at_a_loss_holding_crypto_but_if_you/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>and it's gets worse and worse the longer you hold USD. Thanks to inflation. </p> <p>If you held USD in a bank in 1981. Say $1,000,000. You held for 40 years. That's $1M is now worth $333,333.</p> <p>That's because of buying power.</p> <p>Your $1 now was worth $3 in 1981. Especially if you HODL it in a bank. </p> <p>Many years ago, it was common people recieved a tiny interest in the common bank. Now it's opposite. You pay them service fees once a month. </p> <p>This is why they say dump into a 401K so it builds interest. But even that hurts. </p> <p>The annual ROI on 401K is 3-8%. Let's say you average out 5.5% ROI over 40 years. </p> <p>Let's start with year 1 in 1981 when you were 25yrs old.<br/> You decide to make a one time investment into 401K of $5000. </p> <p>After 40 years , that $5K you dumped in is appx $42,550. That's about an 851% ROI HODLing for 40 years straight.<br/> Looks good on paper? Sure it does.</p> <p>but thanks to inflation, that $42,500 now was only $14,200 back when you started HOdling So really, your ROI after 40yrs is 283% not 851%. </p> <p>Let's not forget tax when you withdraw because it now counts as yearly income. Especially if you're forced to withdraw early for whatever tragic reason. So your ROI is even worse than 280%. Might be 200% or less. </p> <p>But What If you're forced to retire the year 401Ks tanked 50% In 2008? during housing bubble. </p> <p>There were many people that year forced to retire for X reason and had to withdraw. </p> <p>Pretty shitty deal for something that was supposed to be safe. 40 years Hold??? </p> <p>You're not even guaranteed to live for 40 more years. You might drop dead before you see your money. </p> <p>But with crypto, I may be at risk for being at a loss but I also have chances to get 283% ROI in 4 days during bull runs nevermind 40 fuuking years, and even in bear markets. </p> <p>You won't get that Holding USD in a bank. </p> <p>If someone tells you crypto is risky because you can lose. Ask them if they are good at saving money in the bank. </p> <p>It's a trick question. Usually cockiness will kick in and they will openly admit they save money in the bank. Good. </p> <p>Laugh it off and walk away. </p> <p>These people don't know what the FK they are doing and if they did they would be buying cryptos. </p> <p>USD is a medium of exchange only. Don't hold that. Spend it.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/JuicySpark"> /u/JuicySpark </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o5d78y/you_can_be_at_a_loss_holding_crypto_but_if_you/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/o5d78y/you_can_be_at_a_loss_holding_crypto_but_if_you/">[comments]</a></span>Kind Regards R