A lot of new people have made a lot of new money.

There are some worthwhile things to consider.

These certainly don’t apply to everyone, but a couple people I’ve met might benefit from a few tips:

– Remain Humble and Value the A team

In today’s world, particularly in the US, we often equate having money with capability. Being genius (and/ or lucky) enough to have mined or invested in Bitcoin early on does not automatically make someone knowledgeable about all things business and financial. A newly rich Bitcoin holder might have as much money as an accomplished VC but would still not have all those years of experience. It’s key to not overestimate ones abilities.

Likewise, it’s crazy to underestimate the experience and value of VCs, advisors, hedge fund managers, experienced tech professionals, execs and business builders etc. who have been doing this for years. Someone who has run a fast growing tech startup, led a division of a multi national or traded tens of billions of dollars in all manner of financial instruments may be new to Bitcoin but their ability to get up to speed and put resources behind something is significant. Top VCs have been through massive growth stories before and have a great deal of valuable experience.

– Keep things in Perspective

Yes, Bitcoin has had a wild ride. I’ve met a couple people who feel the new wealth gives them some sort of super-status and invincibility. Keep in mind, in the grand scheme of wealth and assets globally, even the wealthiest bitcoiner is still barely on the radar. There are many people who individually have more assets than all bitcoiners on planet earth combined. Keep things in perspective and keep humble. I met a guy with 1700 coins who seemed to think he was Carl Ichan or something. Don’t be that guy.

– Be Cautious with Investments, Gifts and Spending

Don’t make true the old saying “easy come/ easy go”. Just because you have it doesn’t mean you should be flippant about giving money to hangers on and newfound “friends”.

Investments should be made with the same caution that seasoned professionals make them: audited financial statements, independent expert reviews, diversification etc. Even charitable giving should be analyzed in terms of how effective the charity is in meeting it’s goals and what it’s key performance indicators are. One simple thing which can be done is to make it a policy to digest all possible purchases for a certain time period before taking action.

– Have a plan / Have several plans

Do you have a financial plan? “I have plenty of money, now I can spend what I want.” Is not a plan. You should do the math and have solid estimates of annual expenses and account for many contingencies as well as the possibility that bitcoin crashes. Think about long term objectives such as education for children, possible charitable initiatives and the costs involved in maintaining your desired lifestyle. If you buy a new large home, car, boat or plane also estimate the costs of maintaining the item, taxes and other expenses going forward for many years.

– Be cautious with Security

This should go without saying. Most large bitcoin holders are pretty good with security of the coins (but many need improvements) — everyone who controls a large amount of coins should have an M and N multi signature system and this should be so standard that hopefully no one in our community is ever kidnapped or coerced because thieves become aware that they alone cannot give up any keys. Be sensible about physical security and privacy as well and have plans.

Most of all, let logic rule, accept advice from others, think, be careful and learn.

Bouncing ideas and being a member of a solid peer group is key as well.

That’s my two milibits worth.

-Bruce