What will you do with all of your crypto wealth?
I wish this was a simple subject, but it is like hitting a moving target, while standing on the bow of a ship that is rocking wildly, and you have to aim in 4 dimensions.
The prices of things will change violently.
The old thoughts of, after you have a million dollars in the bank, you will be set for life, are going, going gone.
So, what can we use as metrics to decide if we are crypto rich enough to retire?
Inflation is here. And the Fed isn't in control. Raising rates will not stop this inflation, as it was already baked in the cake. So, what the Fed did is destroy the economy.
The prices of food will go up and up and up. And this will not be nice and consistent pattern. At some point, the food becomes too expensive, then people just start stealing it. Before then, you will see average meat package priced at over $100.
Bread may be gone. The US has been selling all our grain to China, but have not had good enough harvests to replenish what they sold. So, breads, usually the staple during depressions, might not be available.
However, the good folks at the WEF have decided that you can eat bugz.
A good portion of your income will go towards food. So, you have to make plans for that. However, house prices will drop. To zero in many suburbs. Land, that is good for homesteading may go up. (homestead prices are hard to gauge, because in dollar terms, they should massively inflate, but there will be no mortgages to pay that, so it becomes what people can pay out of pocket. Meaning, you will be competing with other crypto investors.
At the same time, TVs and other consumer electronics will drop in price as no one is buying. Then, things like microwaves become no longer available. Repair places will appear.
So, it is really hard to estimate what things will cost in the future.
Many people talk about "When Lambo?"
The thing is, when most crypto people could buy a Lambo, it won't be worth it to buy a lambo.
The lifestyle of the rich and famous isn't going to exist for much longer. Being a globe trotter, getting on a plane and flying to places overseas is going to be dangerous. Sure, there will be resorts, that by their remote location will be viable. But we may see the collapse of commercial air travel. Things are too dangerous in many places, and airplane construction may be going the way of Boeing.
The tiny mansions of a few million dollars will no longer be great places to live. Angry mobs will beset them if they are too close to cities.
What the rich are doing now is buying mansions in New Zealand with fall-out shelters built under them.
The big thing is that the support industry for vacationing people will be falling apart. Too dangerous in many areas, and too few people with that kind of money to support it.
As a rich person, you are going to need to hide your wealth. Dress in holey shirts and blue jeans, like the local populous does. Do not stand out. This advice will save your life.
The one way that i know works into the future, especially the growing food part, is building a homestead.
Here is a weird balance of, if you wait, the price of land will most likely go down. And as bitcoin goes up, the bitcoin price goes down and down. But, the good places get bought up first. So, if you wait, you will have less and less choice.
The other piece is, as you wait, the materials to build a homestead become more difficult to get. There will be shortages, caused by delivery issues. There will be problems caused by saw mills shutting down because not enough buyers, just when you think you have enough bitcoin. We may even see a time when China doesn't ship anything to America. Basically, Wallymart will be barren.
But, anyway, building a homestead, where you grow most of your own food, is one of the few, mostly viable, alternatives for living into the future.
If you grow most of your own food, you will more easily know your costs. When food prices become very unstable, you will have food. And if you own your homestead, then there is only a few expenses remaining.
So, i would be looking for suitable property as your crypto swells in price this bull run.
In the past, if you acquired a million dollars, you were set for life.
Today, we see many TV shows about being rich and famous. Many crypto people have enough bitcoin that they could join them, if all it took was money. (unfortunately, these shows are just a story, and lots more money and connections are used to make them)
Further, that lifestyle is going to disappear. Without the Fed, and their money printing ways, there isn't a way to suck all the money out of people so easily. And the time when you could just borrow against your stock portfolio will be a thing of the past.
The weird part is that servants may become a big thing again. When you can make more money than a dozen people could on their own, then you can afford servants. And there will probably be many people who would rather rather serve such a person than to try to make money on their own.
However, it is more likely that we form into families, groups of like minded people, who come together to each contribute what they can to the group, and share in livelihood. Being a one man operation is not easy. It is difficult for one person to know everything one needs to make everything they may need. And we all need help, now and then.
With your new found crypto wealth, i strongly advice you work on setting yourself up for life. Get what you need, when you can. The future is very uncertain about the availability of items. Of course, further into the future, our distributed manufacturing abilities will be top notch, and we will build most things locally.
Right now, invest in your knowledge. And keep your eyes open for where you belong. Now is the time of the great migration. People will be moving to be with their family.
