How good of an investment is Bitcoin?

Since its launch in 2009, Bitcoin has been controversial, from whether it can "survive" to whether it will replace legal currency, from one extreme to another. However, reality can always cleverly find a balance between the two extremes. Bitcoin has grown very robustly. With the advancement of technology and the continuous growth of applications, Bitcoin is being accepted by more and more people. While we are still arguing whether it is a currency, a commodity, a bulk commodity, or a special commodity, its other most important attribute has not been truly realized:投资品.

No one will not need to invest in their lifetime, so finding a good investment product is something almost everyone does. In front of "Beijing and Shanghai real estate", which is considered the best investment product today, most of the so-called investments are so poorly compared that the conclusion that "Beijing and Shanghai will always rise" has emerged.

If there is no Bitcoin, I agree with this conclusion. Whether it is political or economic factors, Beijing and Shanghai real estate is definitely the best investment. However, after knowing enough about Bitcoin, I think that for most people, Bitcoin is a better investment than Beijing and Shanghai real estate. How good is this investment? I will compare it with Beijing and Shanghai real estate, which is "always rising".

Value-added capabilities

When discussing the quality of an investment product, the first thing to look at is its ability to appreciate in value. There is almost no need to compare this. Beijing and Shanghai real estate are completely defeated. Although the growth of Beijing and Shanghai real estate in the past six years is considerable, the multiple is only 20 times at most. However, Bitcoin has risen from a few cents to nearly 500 US dollars at present. Thousands of times are just clouds. Of course, this is only history. Looking further ahead, Beijing and Shanghai real estate may have another 10 times of room for growth. However, Bitcoin currently has a market value of 5 billion US dollars. Even with the most conservative estimate, 100 times is still acceptable. Therefore, in terms of appreciation ability, Bitcoin wins.

Liquidity

There is almost no need to compare this. It only takes a few minutes to convert Bitcoin into RMB on a bank card. However, if you want to cash out real estate, it would take a few weeks at most, which is considered fast. There is no need to compare this.

Ownership cycle

The right to use a property is 70 years, and even if it is given to you for free afterwards, it is hard to say whether the quality of the house will still be sufficient for continued use. As for Bitcoin, as long as you keep the private key safe, it will still be your asset even if you live another 500 years.

Investment threshold

Not everyone is qualified to invest in real estate in Beijing and Shanghai. In addition to the large initial investment amount, it is also affected by policy factors. For ordinary people whose main source of income is working, unless they are awesome enough to become an industry benchmark, the investment opportunity is almost zero. Conversely, this also means that this investment product can only circulate among a specific group of people, and this status will only exist in a specific historical period. Bitcoin, however, can transcend time and space, and has almost no investment threshold. Although the price of one Bitcoin has now exceeded 3,000, there is no problem in buying Bitcoin with only 1,000 yuan, and no one will stop you.

Security

Real estate may seem indestructible, but natural disasters, man-made damage, or even government actions can reduce your investment or even cause irreparable losses. To be more specific, unexpected events such as fire, construction quality, and road demolition may all result in investment losses. However, as long as you keep your private key safe, you don’t have to worry about losing Bitcoin unless the Internet disappears from the earth. It is an asset that is truly under your control.

No need to trust

@财上海 has a joke as follows:

There are two types of RMB. One is RMB with Beijing or Shanghai hukou, which can be used to buy houses and wait for appreciation without hesitation. The other is RMB without Beijing or Shanghai hukou, which is on your own. Ezubao next door welcomes you.

Almost all investments except real estate require trust, but the naked reality is that there are too few trustworthy investors, listed companies commit fraud, P2P runs away, stamps and coins dig traps, banks coax you into buying financial management, insurance is almost a scam, and Internet Finance + is simply haha. Therefore, Cai Shanghai’s Weibo is to the point, but Bitcoin is an exception. If you can learn to keep your own private key, the biggest risk is just the process of withdrawing it to your own wallet after purchase. At present, there are many reliable Bitcoin trading platforms in China, which makes the trust cost of investment extremely small. The investment value of Bitcoin comes from the continuous appreciation brought about by the growth of users and applications. Therefore, you can rest assured to keep it in your hands and wait for it to rise in the long term. In this process, you don’t need to trust anyone. This is the only investment product besides real estate that does not require trust in others!

Light tax burden

I won't talk about the tax burden on real estate. It's all tears. The transaction tax sucks blood, the property tax extorts money, and the inheritance tax may come at a loss. I am not optimistic in the long run whether the increase in investment in real estate in Beijing and Shanghai will always exceed these taxes. As for Bitcoin, most domestic exchanges currently have no transaction fees, and the fees for withdrawals and transfers are almost zero. Of course, there are no other taxes. Bitcoin wins in this regard.

Asset concealment

This may not seem to be a necessary condition for investment, but in China, it is actually very important. Owning 10 houses in Beijing and Shanghai may be roughly equivalent to owning 15,000 bitcoins. If it is the former, almost everyone knows that you are a rich man, and the consequences may be serious. With the latter, you can choose any lifestyle in a low-key manner. At least for me, this is the way I like.

Asset ownership

This is part of security, but it needs to be specifically discussed separately. Real estate is a personal asset, but it is also a social asset. The law has not yet clearly defined the ownership after 70 years. At the same time, your house is also an integral part of the community. You do not actually own your property completely, but Bitcoin is a real personal asset. As long as you are willing, you can burn your private key with a torch and no one will care about you. Unless you agree, no one can plot against your asset, not even the state apparatus.

Political Risk

This involves the understanding of the social status, and there may be various views. Real estate is the lifeline of the Chinese nation, so at present, the risk is still controllable, but making profits from real estate is also a glorious tradition of a certain party. Once the society is turbulent, real estate still has systemic risks. Although the government does not recognize Bitcoin as a currency, in fact, it is already a global currency, and it is getting stronger and stronger. It never needs government recognition, nor does it need to circulate through banks. It is a completely free market currency. In the long run, the political risk of Bitcoin is 0. The more economic and political turmoil there is, the more Bitcoin becomes a safe haven, which is more conducive to the increase in price. Therefore, Bitcoin is also a complete winner in this regard!

other

Bitcoin has some other advantages, which we will discuss again here:

1. Bitcoin has the dual attributes of currency and asset, that is, Bitcoin is both money and an investment, combining high liquidity and wealth growth, which is incomparable to any real estate.

2. The price growth of Bitcoin comes from the fact that it meets the real needs of more and more people, so it is a kind of "financial management" that you can hold in your own hands.

3. The price of Bitcoin is getting higher and higher, and the scale of assets it can carry is getting larger and larger. It is not impossible that several Bitcoins can be equivalent to a house. Therefore, Bitcoin can be regarded as real estate that can be carried in your pocket. Even if you go abroad or immigrate, you can easily take it away, and it will not affect its value at all.

4. To put it more directly, for the existing property owners in Beijing and Shanghai, the "losers" with no background and no strong skills may only be eligible to pay rent forever. If they are worse off, they may not even be eligible to pay rent. Buying some Bitcoins and hoarding them may be the only way to counterattack besides studying hard and working overtime.

shortcoming

With so many advantages, it would be unfair to say that Bitcoin has no disadvantages. I personally think the following points may be its disadvantages:

1. The Chinese government has not officially recognized the currency status of Bitcoin, but only recognizes it as a special commodity. So, if you love the Party, the country, and the government, investing in Bitcoin may make you a little worried. What I can tell you is that Bitcoin is not unique to China, it is the world's currency, and the attitude of the Chinese government is really not important, believe it or not.

2. The price of Bitcoin is currently volatile. If you hope to make huge profits by investing in Bitcoin in the short term, you may be disappointed or even suffer losses. However, if you can hold on to it for a few years, the returns may be greater than you imagined.

3. The purchase, use and safekeeping of Bitcoin requires learning. The more you understand, the more you can hold it firmly. If you are too lazy to learn and refuse to think independently, there is Ezubao next door!

in conclusion

Beijing and Shanghai will always rise, which will benefit the present; Bitcoin will inevitably rise, which will benefit future generations!

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Author: Old Cat