Post
Topic
Board Bitcoin Discussion
Re: Downsides to HODLing bitcoin as an investment
by
davis196
on 07/08/2024, 05:59:11 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.Does holding precious metals like gold and silver pay any dividends? Grin
Bitcoin is a currency, not a stock. If you want stocks, just buy stocks. Why do you have to compare two financial assets, that have nothing in common. Bitcoin is not a company.
2.The price drops could cause loss only if you sell at a lower price. Just HODL and wait for the price to recover. This isn't that hard.
3.Taxes can be avoided. I don't recommend this, but there are legal ways to pay less taxes. Just ask an accountant.

OP, if you don't like Bitcoin, then why are you posting in a Bitcoin forum? Just leave your Bitcointalk forum account and go post in other forums about finance and stocks trading.