It’s not every day that fate gets to change a man’s life in a big way, and most especially someone as vocal as one Reddit user who is now making headlines across various news outlets. On April 19, the gods of money decided to smile down of this guy, whose Reddit username is Joxnlol. Apparently, Joxnlol had participated in a lottery in Illinois. He ended up winning a cool $500k.
Overwhelmed with excitement, Joxnlol took to Reddit to share the good news. The fact that he chose to post in a crypto fan base suggests that Joxnlol is a crypto lover too. In fact, he intimated that after winning the huge windfall, he invested half of the money in Bitcoin and used the remainder to cover some bills, buy a car, and even put a down-payment on a nice house.
The Taxman Isn’t Your Buddy
By all accounts, Joxnlol could well be the luckiest man in Illinois right now, but the tax authorities wouldn’t let him enjoy his full winnings. He had to cough up around $143,000 as tax, leaving him with about $357,000. In simple terms, Joxnlol paid out about 28% of his total winnings in taxes.
As a matter of fact, Joxnlol isn’t the only guy to have had a good part of his lottery winnings hived off by the taxman. Data from Statista reveals that between 2008 and 2017, the State of Illinois received more than $228 billion as revenue from taxes paid out by lottery winners. A simple look at the chart below confirms that the revenue from lottery winnings in the US has been increasing since 1977.
Redditors Say He Messed Up
In his Reddit post, Joxnlol had asked other redditors if he might have made a bad decision by putting half of his winnings into Bitcoin. He got a whole lot of responses, with a good majority suggesting that he might have messed up by not investing the whole amount instead. Indeed, that opinion makes sense, especially comparing Bitcoin’s price upswing between April and now.
According to Joxnlol, he invested $178,500 in Bitcoin in early May. At the time, Bitcoin was just getting out of the long crypto winter that had pushed it down to the lows of $3,000 in April. The crypto had just resumed its bullish move, and in early May, it was trading at around $5,200.
Here's a chart showing Bitcoin's price movement from May to November.
Currently, Bitcoin is priced at around $8,800, meaning that Joxnlol’s investment has already grown by upwards of 60%. That’s why many Redditors feel that he could have made an even bigger fortune had he opted to invest the whole $357k in Bitcoin. However, Joxnlol is very possibly headed for even more profits in the future, especially because Bitcoin is expected to rise in price as it gears towards the block reward halving slated for May, 2020. He plans to HODL his coins for at least a year.
However, there are those who feel that he might have made a bad decision for exposing his identity to the public, something that might make him an easy target for criminals looking to rob him of his precious cryptos.
More Americans Are Getting Into Cryptos
Joxnlol’s story unfolds even as reports suggest that more Americans are warming up to the idea of owning cryptocurrencies. In 2018, close to 8% of Americans had cryptocurrencies. According to a recent targeted survey, about 36.5 million (14.4%) Americans posses some cryptos in 2019, meaning that the number has almost doubled.
In fact, one of the Presidential hopefuls, Andrew Young, is promising that, if elected, he will pass a legislation that will allow the government to pay the people Bitcoin tokens as a way of supporting wealth distribution.