Yesterday my partner came up with an idea to deposit a good some of money in a fixed deposit account on an online banking platform offering a 13% interest rate, they offered to pay the interest upfront but the initial deposite would be locked in till the exact stipulated time. Though this may sound like a good deal I discouraged him from making this investment for the following reasons.
Firstly with the rate at which the traditional currency in my country is steadily loosing value and the proposed profit and initial deposit might just be valueless at the matured time this deal might be of little or no value.
Secondly these platforms in my opinion cannot be trusted as different reasons can lead to their folding up and shutting down. I understand that life's a risk but some risks are not worth taking.
On the other hand I offered a solution. I asked him to invest in Bitcoin, now even though the price of bitcoin is volatile, in my opinion it is still more profitable to invest in Bitcoin especially for long term investment than in any fixed deposit scheme.
If you were in the position to give financial advice to someone looking for a long term financial investment, what would you advice?...
I agree with you:
btc is suitable for long-term investment, I'd rather not call it an investment - it's more like buying something valuable... As for trading, it's quite hard to get profit out of short-term deals in cryptotrading. I think that btc can bring hodlers some profit in a couple of years, but most probably there won't be a dramatic price rise...
You are contradicting your own words, if bitcoin is not an investment then what do you call it? Moreover, when you buy something and expect it to be more valuable in the future, you don't call it an investment, what do you call it? But I agree with you, bitcoin will give better returns if we hold for long term instead of just trading short term. There are still many people who make profits from trading, but I believe that if we compare the total returns of both, holding will give better returns.