Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Moreno233
on 11/08/2023, 20:49:01 UTC
⭐ Merited by JayJuanGee (1)
.
[edited out]
What is your take on investing in the physical sector like real estate? I know of my country where real estate is a huge business that gives massive return on investment. From the records available, the value of real estate here doubles every decade and it is reliable and transferable to heirs. This can be a good option to add to Bitcoin.

I understand Bitcoin do give more than double with a decade and this  trend does not look it will change soon. The bottom-line of our discussion is how to generate sustainable wealth so, I a kind of still support other business venture like real estate that can also be good investment opportunities. Besides, there is joy and self fulfillment you get when you see your physical asset.

However, Bitcoin does not require so much technicality to venture into...the entire process of buying, storing and buying more can be learnt within a short period of time at one's convenient time and location. Unlike other ventures that requires so much processes like documentations, legal aspect and others; all of which have associated risks.

I think that my above example (responding to Yaunfitda) kind of addresses these ideas and even similar scenarios... and you seem to even point out that the cost of property ownership might not be getting you as much "returns" as you might superficially believe them to be capable of.. including 2x in 10 years, and even though I think that people might be exaggerating BTC returns as averaging 2x every year, but I still think that bitcoin is a way better investment than property in the coming 10 years.. and do what you like.. including that if you are going to live in the property, then you do have the saving of rent.. but you are still tied down in ways that you would not be with merely renting.. so sure there are some values that come with property ownership, but you likely need to question how much of your bitcoin (or your opportunity costs of having fewer bitcoin) is going to be worth it to buy property sooner than you should when maybe you could wait until your BTC stash is bigger.. and of course, you can choose what you like, even if it is not really the better of the choices merely because you are inclined to accumulate something physical. or maybe income producing or maybe ways to deduct expenses.. and none of those things are bad.. but still might end up being premature to jump in too soon, even if that's where your inclinations lie.
Comparing Bitcoin to buying real estate is actually awkward! It really do not make sense. How can you compare two things that cannot be compared. Properties detoriate with time, you will need to spend a large chunk of your profit to maintain the property whereas you will spend nothing to service your Bitcoin... you will sleep, wake up and see your investment increase and multiply. If you calculate how long it will take property investment to give x3, you might probably not be alive to see that happen but in our lifetime, Bitcoin have grown in multiple of several tens.

Anyone who is opportune to know about Bitcoin but still think on the direction of real estate for whatever reason should be seen as unserious.