Whenever the term Bitcoin Millionaire is heard, the mind conjures the image of a millennial wearing flashy streetwear, sporting a Lamborghini, and showing off all sorts of new money traps. One might think that being young and rich simply provides too many temptations, if the spending habits are any indication.
Well documented are the prodigal spending habits of professional athletes, typically going broke within a few years of leaving their sport, but that isn’t quite the story with Bitcoin millionaires. The Financial Action Task Force, an international anti-money laundering authority, has implemented rules that make it difficult to exchange their investments for cash.
However, there are ways of cashing out that are considered lower risk or legal, such as paying merchants with cryptocurrency directly. There may not be grocery stores accepting Bitcoin yet, but many high-end car dealerships have found themselves a new customer base. In Singapore, 2019 saw the first car purchase with cryptocurrency. The same year saw a publicly listed jewelry store, SK Jewellery, partner with a blockchain payment service provider to allow crypto payment. America has seen multimillion-dollar real estate deals, massive gold purchases, and other huge items sold with crypto.
The legal limbo that many blockchain investors and businesses have operated in is ebbing away as new regulations solidify what is and is not legal. Singapore has begun enforcing the Payment Services Act, a new regulatory regime aimed at tackling some of these problems.
For those in the wind, there is a new stablecoin backed by a 150% Bitcoin or Ethereum collateral, called USDB. The company behind the technology, STAE, has announced that the technology is now online for use and that they are partnering with companies representing thousands of gaming applications popular in Asia. Typical costs of liquidating online holdings, due to lackluster banking infrastructure in the deeply fragmented markets of Southeast Asia, run roughly 5%. STAE believes they can beat this target using the decentralized USDB, especially when the Over-The-Counter partnerships are online. Even so, Bitcion holders will only be able to liquidate 66% of their holdings but will be able to do so in a smooth and legal manner.
For everyone else, there’s always lambos.