a friend bought two bitcoins when they were $7,000 each. Now they are worth nearly $50k each. He's been on social security disability d/t schizophrenia he developed in his 20s. He's now in his 50s. He hasn't taken
any money out of his bitcoin because he's afraid he'll lose his medical coverage and his $800 monthly check.

Hi. Receiving profits from an investment would have no adverse effect on a person's Social Security disability (SSDI) benefits. You don't say what type of medical coverage your friend has, but he wouldn't lose Medicare coverage due to receipt of profits from an investment.

However, if your friend receives needs-based benefits such as Supplemental Security Income (SSI) or Medicaid, any increase in his income or assets could affect his eligibility for those programs. Also, Medicare premium rates can increase depending on the amount of a person's income (https://www.medicare.gov/your-medicare-costs/part-b-costs).

Best, Jerry