What’s the best investment approach tomorrow?

Devcoin has enjoyed a major surge of interest in the last six weeks or so, leading to a surge of new writer signup requests and a wonderful boost in price on the exchange. This boost in Devcoin price coincided with a major Bitcoin rally which ultimately brought its price from under $200 to over $800, topping out at $1100 at one point. It was at this time that writing for the Devtome suddenly became seriously lucrative, or at least it was at this time that it occurred to me that it really was lucrative. My approach towards the whole process underwent a transformation my mind transitioned from viewing my Devtome writing as a hobby to a significant source of income.

When both adults in your household are underemployed and the bills have been piling up, being barely kept up with, for years, and you suddenly realize that there’s money in your hobby, you find yourself ethically obligated to cash out a significant portion of it. After all, no one allows their children to go hungry or be deprived of needed medical care or their home to be repossessed while they hoard all their assets in the hope that one day those assets will make them millionaires. Well, no moral ethical person would willfully do this for long. You have to balance the immediate needs of your household with the future potential which could be realized from investing your funds.

In the last week of the round 29 payouts I came up with a simple formula which allowed me to balance this in my own mind. I reserved one quarter of the payout for investment purposes and the other three quarters I sold off at market price, ultimately turning it into cash so that I could start paying some overdue bills. I figured that at the very least if the potential to prosper through the cryptoworld blew up next week I’d at least have the benefit of having gotten a little bit further ahead financially while it lasted. Nothing will take away the much reduced car payments coming from having gained an extra amount of cash to add to the vehicle’s down payment, and nothing will take away the fact that our family’s supply of raw milk for 2014 is now one third paid for.

At the same time, this amount of profitability is not something that can ever be counted on or planned around. The price of Bitcoin could crash tomorrow. The price of Devcoin could also crash. Just as easily as the two went up together, they could both go down hard at the same time. This is one reason why it is always good to take profits when you can. It is also a good reason to be willing to hold some back for the potential of a much higher value further down the road.

Havelock Investments recently announced a new IPO for a very interesting company called MintSpare. This company will pay people Bitcoin for their no longer wanted electronic equipment. A number of fiat companies already offer similar programs and because of the rapid obsolescence of electronic gadgets, the electronic trade-in business is very profitable. The company buys back the old gadgets, refurbishes them, then sells them to people like me who do not need the latest greatest version at a nice hefty markup.

I’m still reading through the prospectus but I’m at this point wanting to invest at least one Bitcoin into MintSpare. I had enough Devcoins sitting around to sell for Bitcoin and figured that’s how I’d raise my investment capital. But in the past few days the price of Devcoin has taken a serious tumble, dropping from right around 100 sat to under 70 sat. Not only that, at this moment the buy volume is low enough that trying to sell off enough to raise one Bitcoin at that price will no doubt depress the price much further. Now is simply not the best time to raise a Bitcoin by selling off a bunch of Devcoins.

So I’m considering other options for raising that Bitcoin. The easiest might be to take it directly from my Havelock Investments account. I could sell off my ASIC MINER shares. The price has gone up recently. If the price holds I could sell off enough to raise a Bitcoin. I’d rather not because I do enjoy that weekly dividend and I’m not sure how often MintSpare will pay out its dividends, but it’s certainly an option. Another option I have is to get my NXT client working again and sell off a quarter of my NXT holdings to raise that Bitcoin. I bought one Bitcoin worth of NXT several weeks ago and since then the price has gone up enough that I have over four Bitcoin’s worth at the moment. A third option I have is to sell off some of my CEX hashing power. The downside of that option is that the price of GHS is lower than I’d like and that I would immediately miss the daily payout of new Bitcoin, but I could do it.

None of the above options is perfect. Each one has at least one downside. But the fact that I have more than one way to raise a Bitcoin—an $800 value—is nothing short of amazing. This time last year I would have never dreamed it would be possible to even consider dropping the equivalent of $800 on an investment. And I have all this available after setting aside my livelihood earnings which get cashed out and used to pay bills!

As I write this I’m also considering something else I wouldn’t have dreamed of this time last year. A family membership at a local recreation center costs a bit less than one Bitcoin’s current equivalent of fiat money. My husband has been talking about how much he’d like to exercise more this year and fitness classes are all fifty percent off with a membership. Membership includes babysitting which means that I could swim laps every so often knowing that my children would be well cared for while I was doing it. Use of the facilities would help me fill some dead time between various activities my children are involved in with fun and profitable pastimes such as swimming and rock climbing. I would consider cashing out some of my investment funds to make this investment in the well being of my family.

This brings up an important point about what it’s like to suddenly have more money than expected coming in. Ideally I would direct all the extra money towards paying off debt and getting us on better financial footing. At the same time, though, things that need to be done or that I have wanted to do but which have been postponed endlessly due to lack of funds are now clamoring for my attention. Suddenly it seems as if these things can’t wait another year, or even another month. It would be so easy to get to a point where all we have is a higher cash flow, and this would be especially dangerous for us because that higher cash flow could dry up in a flash. All it would take would be for the price of Bitcoin and Devcoin to crash hard and stay low for several months. There needs to be a balance between buckling down and taking care of bills and buying some extras to make our life better. I haven’t figured it out yet, but it will be fun to go through the process.

By this time tomorrow I hope to have made a decision about MintSpare, whether or not I will invest in it, and if so, how I will raise the investment capital.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *