Post
Topic
Board Bitcoin Discussion
Re: Downsides to HODLing bitcoin as an investment
by
vitya1982
on 07/08/2024, 03:28:32 UTC
#1) it doesn't pay any dividends like stocks
#2) risk of extended drawdowns which could cause loss of principal unlike in a real estate investment where the property only goes up in value
#3) unfavorable tax treatment since it cannot be depreciated like many types of assets can be when used for business purposes

the fact that it doesn't pay any type of periodic cash flow while it is owned is a serious issue. for these reasons i don't really like bitcoin as an investment.

1. Well, yeah. It's decentralized, no one will pay you dividends. However, returns from BTC are much higher than those from stocks.
2. Everything is a risk, don't be a fool.
3. It depends on the country, actually. Some countries don't even tax it at all yet.