Paul Rosenberg – A lot of Bitcoiners are waking up to find themselves rich these days, and I suspect that most of them have little experience handling significant amounts of money. And so, having been around the block a few times, I think I should pass along some lessons.
- Shut your mouth. Seriously. Tell your spouse, of course, and if there’s someone else you trust deeply, but after that shut up. If asked (your friends must know that you have Bitcoin) be vague. And do not be the schmuck who buys the Lamborghini. Repeat these words: Low Profile.
- Go ahead and buy a house. You’ll always need somewhere to live, so go ahead and buy a home. But notice that I said a house, not mansion. (Again, Low Profile.) Buy a nice, comfortable place where you can live pleasantly. Make sure you’ll have good neighbors. Think about maintenance. Think long term.
- Buy assets. An asset is something that brings money in. A boat, for example, is an not an asset, it’s an expense. A functioning business is an asset. Buy assets.
- Put your extra Bitcoins to work building the crypto-economy. We need an entire, functioning, cryptocurrency ecosystem, and Bitcoin was just the start. Find a project you can put your heart and soul into (or start your own), and pursue it.
- Understand that money management is a skill. If you haven’t spent years building up that skill, be clear on the fact that you don’t have it. Find professionals to help you. Don’t give anyone “the keys to the kingdom,” and don’t give away any of your decision-making power, but do get advice from experienced people.
- Don’t get cocky. Having more money than your friends can make you over-estimate your genius. Your money came from both insight and luck, not from insight alone. Don’t forget that. Now your job is to earn your luck.
- Don’t let money define you. If you start thinking about status… if you start enjoying people paying deference to you because you have money… you’ll get sucked into a miserable life of “he has a yacht and I don’t.” It never ends and it’s a miserable way to spend decades.
So, decide right now who you want to be, how you’d like the world to be, and how you’d like to be remembered. Use your money for those things. Start getting wise. It takes time and effort, but you’re as able as anyone else.