A) You buy a house for 500k. You don't pay rent and you live in a place with a fantastic housing market. The price of the house doubles in 5 years. Your net worth is now 1 million.
B) Instead of buying a 500k house, you buy 500k worth of bitcoin. You pay rent for 5 years, say around $2500 on average. That's $150,000 you paid in rent. However, let's say in those 5 years, bitcoin has done a 5x. Your net worth is 2.5 million minus 150k that you paid in rent.
Opportunity cost. Obviously this is assuming you believe in bitcoin and that it can at least do a 5x no problem. If you don't believe in bitcoin I'm sure you have some other crypto in mind that can easily do a 5x in 5 years. Real estate is a psychological meme when crypto exists IMHO.
>Opportunity cost. Obviously this is assuming you believe in bitcoin and that it can at least do a 5x no problem. Yeah some one post that picture of the user saying how that user with 212 btc will rope when BTC drops to a dollar.
James Davis
zoomer hands typed this. You little faggots have no idea how a real economy works and you're going to find out the hard way that real things have value and unreal things do not.
Above scenario is valid for all 12 years of crypto's history
If you have even the slightest confidence in crypto's future, the logic is undeniable
Wyatt Flores
On the one hand you have a tangible asset that you can invest time and energy into making even more valuable if you want to, and you can also live in it and use it for things.
On the other hand, you have a purely speculative digital asset that world governments could ban so it crashes to zero overnight, or at the very least you'd have a very hard time liquidating it.
I'll take the house.
Bentley Thompson
I believe you are still acting out of risk avoidance. Can't make gains without taking on risk. But crypto is at such an advantage that even the absolutely safest asset will still outperform real estate by leaps and bounds.
Daniel Watson
Lol buttcorn will be lucky if it ever gets to 60k again
Adrian Nelson
Why are you even here
Juan Martinez
That's true but the intelligent play is to manage your risk so that you don't lose all of your money. And you do that by making riskier investments a smaller proportion of your total portfolio. Going all in on a risky asset like BTC or crypto in general is completely retarded. All but the most delusional BTC maxis recognize that it's over if the U.S. and other major countries ban trading. A better play would be to do something like buy a $400k house and put $100k in BTC, then hold for 10+ years.
The only way bitcoin is doing a 5x is if it gets down to below 10k kek
Kayden Reyes
problem is no one is going to give you a 30 year loan to buy shitcoin with 10% down so the comparison is weak
Grayson Cooper
All these naysayers, why are you even here
If you followed the above scenario at any point in the past (when crypto was even more unproven and risky), it would've worked.
Aaron Smith
Not everyone here is a retard like you.
Thomas Ramirez
You have a point, when loans are introduced the game changes.
To counter loans being used in real estate, you'd have to supplement your BTC position with margin. I think even a 3x margin will sizably beat a real state purchase w/ mortgage.
Oliver Miller
This is bait, right? This. >you'd have to supplement your BTC position with margin. I think even a 3x margin will sizably beat a real state purchase w/ mortgage. This substantially increases the chances of blowing up your account, introducing broker risk (margin offering crypto companies are poorly regulated), and there is no precedent that BTC will keep going up forever. It could easily go sideways for example, since it's "digital gold". This also doesn't address the 12-24k you will be losing per year in rent payments.
Christopher Myers
no one is buying homes for 500k cash
Christian Gonzalez
you don't buy the whole house at once you dumb faggot
Gabriel Myers
It's all about risk management. You'd have to do the math in detail to figure out exactly which will come out ahead relative to risk.
I think my main point is that a lot of the push to invest in real state are psychological in nature and doesn't actually maximize gains relative to risk. It's like it doesn't matter if investment Y or investment X will for sure make you more money in the long run, if you have some capital then you must first use it to buy a home. I disagree.
If you believe in crypto then BTC is extremely low risk with a very large upside compared to real estate. So if BTC (with or without margin) is that investment X that will make you more money compared to real estate, then you buy BTC. Simple as.
