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Yes, There Is Such a Country, where Government Encourages Innovation, Blockchain and Cyber Security. Estonia
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You'll lose more than the 2k bonus because the penalty is 25% of everything inside the ISA. Don't do it. Especially if you're using the LISA to buy a house. Bitcoin may give you higher expected returns, but with the higher volatility, it's not worth risking your housing deposit. If you want, add new money from outside your LISA to bitcoin.
Oh yeah I forget I had a LISA! That was very good. Maybe the only financial reccomendation my parents ever gave me haha.
Congratulations. Keep going. I just opened up a LISA (UK here too). So 10% of my salary goes to that each month.
If I were expecting to buy a house within the next ~2 years I’d start selling any stocks in my LISA and open a cash LISA. In the hopes of avoiding such a situation. But… So assuming that the price of the stocks are correlated with the price of bitcoin (which is the whole point). I suppose I could either: A. Wait to buy a house - hoping that when the next halving comes around bitcoin rallies and brings the stocks with it. This isn’t ideal and I’d obviously rather hold bitcoin in the LISA than stock which is likely far less resilient than bitcoin. B. Buy a house anyway (if I could) - using whatever remains of the LISA so as to liquidate it without incurring the 25% penalty of withdrawing to cash and without having to wait till I’m 60.
I would consider Argo blockchain, I also use HL for my LISA however I’d be too scared to minimise diversification given such a small amount of time for capital growth. Out of curiosity, what would you do if bitcoin had tanked before you wanted to buy a house? Would you leave the money in your LISA and wait for it to come good therefore risking government interference? Or would you take your losses therefore making your government given money, not profits at all?
I think a few people are missing the point that the LISA gives a rebate of 25% and the profit is tax free. I agree with you - I’m looking for something similar, whether it is in my pension pot, LISA or a stocks & shares ISA… I want my gains to be tax free - stocks have it, so should crypto.
True. But in the context of a LISA or a SIPP it's the best we can do.
I do consider myself a bit of a BTC Maxi, and I hold my own keys. BUT I’d probably use the LISA for buying a house (not retirement) i.e. I’d sell all the stocks in it for cash in 5-10 years. So the government contributions and no capital gains tax is very attractive to me. Maybe a true Bitcoin maxi wouldn’t consider buying such a poor asset as a house 😅
The LISA can also be used to buy your first home, which for me might be in 5-10 years. So I’d hope that nothing like that happens in the meantime. But I completely agree with your point that the government can do whatever it wants and will likely do something like this by the time I’m 60.