Topic: Bitcoin is NOT a replacement to the Stock Market/ traditional investments - page 2. (Read 545 times)

Bitcoin was created to be a currency and from the best of my knowledge, Satoshi's intention wasn't to make bitcoin's price go up but to make the currency accepted/used by many. But the price shot up all the way from 0.8$ to an ATH of $20K. When people think of this, they look at it as some sort of investment. Bitcoin's primary goal is to be a digital currency that doesn't have an intermediary (like the banks). However, we can call it an investment too.

I can't completely agree with this argument. Nowadays, Bitcoin is being used as an investment asset. At this point, it would not be fair to claim that it will replace traditional investments, but I have seen enough evidence to state that there is a small net outflow from traditional assets to Bitcoin. And this may accelerate considerably in the coming years, as Bitcoin gains more acceptability.

On a side note, I don't see those people who treat Bitcoin as an investment considered it as a replacement for traditional investment.

It's just that in terms of accessibility and convenience, crypto is way more reachable to them. I do have both crypto and stock investment and on the latter, before I was able to deposit (talking about the financial broker based in our country), I need to submit my KYC thru mailbox (seriously), several printed copies were also asked. Unlike in crypto, read the basics, understand the risks, learn the securities, familiarize with the exchange interface, then it's a good to go.

But whatever it is, either stock or crypto, what matter is, we should really prioritize to at least have an investment at any type. It's good that we are securing our future rather than to rely on a few options of source of income.

Bitcoin is not a replacement to the Stock Market but the stock can be tokenized 
bitcoin is not an investment instrument, but people said "invest" in bitcoin.
for me, bitcoin currently become a speculative investment.
like they don't really see at the fundamental, they see at technical and graph only.
but, once a good fundamental analysis is out, they will be crazy about it.

maybe I am bad at this point, but I am not hodling bitcoin.
I exchanged some of my crypto into fiat to buy stocks or invest in something for self improvement. lol it is a must!

The increased demand and the limited supply is the reason for the rise in the value of bitcoin. The value of bitcoin will grow with time, bitcoin isn't an investment. The core reason for which its been developed is different, but things changed in between due to its tremendous growth. This has made people prioritise it aas an investment.

In my country the vast majority of people aren't invested in stocks. At best they're in life insurance with some stock exposure.

The reason being people want safe investments, nothing that can go down.

So if these people own some BTC, it's kind of an improvement. They might go from BTC to stocks !

I totally agree with this, Bitcoin is not replacing.
But about saying Bitcoin is not an investment, I am still confused and don't know why it is said so.

What about this?
We put our funds in Bitcoin and hold it as an investment for a certain period for the sake of getting more income or profits in the future. I think this is also one of the investments.
But well yeah, once again, the definition may be different for each person here.

Source: https://www.investopedia.com/terms/i/investment.asp

And stocks are NOT a replacement for Bitcoin!


Obviously I'm biased but in my opinion cryptocurrencies -- in small, deliberate holdings -- can serve as both a hedge and a potential moonshot in any portfolio in a way that no other asset can.

Small caps or specialized funds? Potential moonshots (albeit on a smaller scale), not really a hedge though.

Gold and precious metals? Decent hedge but not much moonshot potential.

Real estate and venture capitalism is out of reach for most people and funds that give you access to either will smother most potential gains with their fees or keep the gains while leaving you with the losses.


It's possible to invest in cryptos responsibly, just as it's possible to invest in stocks incredibly irresponsibly. All in all it just comes down to proper risk management and investing sanely.

Bitcoin is not a traditional investment, stock market is centralized while bitcoin is not, therefore they have their own market and there's no way the decentralized market will take over in the investment world, the centralized market which is back by the government will still remain as the most invested market due to its security and proper regulation.

We are just getting a small pie of investments but it's already a success for Bitcoin.

I certainly believe that Bitcoin will remain volatile, what we are seeing now which is a pump could soon result to some big massive dump.

Bitcoin was made to be used both - technically and economically. Technically - where new developments will take place any moment and add up more for the better of btc and its users and Economically - where btc is seen as a safe haven investment and a store of value hand in hand. It is said that anything that has a lot of demand will get its worth more and more expensive. Nothing can be expensive than trust and when investors are trusting btc to be their all-in-one asset to invest their portfolio in and sit back and wait, I think there is nothing wrong even in seeing btc as a replacement to stocks because investors are losing their confidence out of stocks and that whole confidence is shifted into btc.

Agree!
I would rather to have that stressful situation rather than missing out the opportunity for some possible recovery in case those other investment of yours are going on reds.
You would definitely had that chance of recovery since you can patch up on what you had lost.

When dealing with stocks then profits arent really that high basing on the lot size that you had put and since its volatility isnt really that high compared to crypto then
you would really be having that kind of slow or gradual loss into your portfolio unlike here where within a snap it can blow out your entire capital.

It is better to invest in both of them, because as we all know the price movement in crypto itself is very significant, of course this must also be aware of how much risk we can get when using it.

It is stressful but there's always the good side of it. Whenever the other investments you have plummet, you always have the other investments which will make you recover. There could be times that all of them are going to bleed but as an investor, you know what exactly what to do if that time comes. I agree that engaging in both or as many as you can which will not compromise your productivity of monitoring it and managing it is still a better decision.

We do always have that common investment line;

"Dont put all your eggs in one basket"

This is why i do always consider on putting up some funds in stocks and at the same time i do put also in forex and then lastly is on crypto.
It might quite be a stressful thing yet handling multiple investments isnt easy as it sounds.Why would need to replaced if you can
engage with both?

Well, these two are definitely conflicting ideas. It either is or isn't. If Bitcoin has become an investment, then it is.

So what's the point here? Bitcoin is an investment, cryptos are investments as well as real estate, precious metals etc. An investment portfolio can be entirely made out of cryptos, because you just admitted (I think) in the previous quote that Bitcoin has definitely become an investment.

Well, any 2 assets you take are two completely different things - and that includes assets that are part of the same category (say copper and gold).

I'd advise to check and calculate interest rates vs annual inflation as well. Many times, the interest rate ends up to be actually lower than the annual devaluation of your sum.

Honestly, I would say this isn't necessarily true. Besides Bitcoin's ATH (which is only $4k from today's price), you'd be on a profit no matter when you've invested in BTC since its inception. People lose money because they are greedy and unexperienced, and they're being controlled by emotions. My crypto portfolio has done very, very well so far. Bitcoin's price crashes do not make for bad investments. Gold crashes as well, so does silver, so do stocks. It's all about you choosing the right time to cash out, hodl or invest.

Before investing in anything, you have to do research. If everyone who invested in BTC did proper research about its past and had not pushed themselves into extreme greed waiting to become rich, things would've looked different. I'm not saying someone should invest their life savings into cryptos, but if you can't help but be led by market FUD and stuff like that, then take some time and educate yourself before you put your life savings into something. The idea itself that you have spent a life saving bucks and randomly invest it all into something you have never studied in your life is very stupid.

I don't recommend for anybody to replace their stocks with cryptos. It's always the best to have them both. But for someone that likes to take risk more than I could, I'm good to crypto only combination.
I have other traditional investments but not with stocks anymore. But if somebody decides to go all for crypto, he has to make sure that he knows what he do.

Traditional investments in the stock market have always set a pattern, have a history, their downfalls and have risen from the deep, unlike Bitcoin, the stock market moves very slowly, investments tend to pay off mainly after approximately 8-10 years old, on the other hand, bitcoin possesses volatility, and volatility is the ingredient that the stock market does not have.

If we think about the future, bitcoin is the best option, it may be that in the present and after 5 to 10 years, the stock market for many is the salvation, but the Bitcoin market can achieve Financial Freedom quickly, without waiting so many years.

Simply put, investing is an activity that is investing in the hope that someday the capital will provide more benefits because it is invested in a valuable asset / item. be it a kind of gold, copper, silver, bitcoin, be it antiques, property or land. as long as there is a reciprocal of what is planted.
I think it makes sense that bitcoin, another cryptocurrency, is said to be an investment. Why? It is clear when referring to the meaning of investment. maybe you know better than I do, or you know better. but I ask permission to speculate. because for me it depends on how someone implements it. If someone aims to invest their money with bitcoin at a price of $ 10,000 then the next time the bitcoin price becomes $ 15,000, then there is a reciprocal benefit, which is around $ 5,000. the law automatically falls into the investment category.

I think only a fool would take bitcoin/cryptocurrency in that way! I know there are some puritans who definitely think in Similar line but they are just fools, you can't really consider them! Probably they are the one, who have a portfolio build only on cryptocurrency!

It is obviously true that bitcoin was introduced as a currency but it has indeed emerged as an investment. It's because of the regulatory hurdles bitcoin is facing around the world which left us with a very limited number of merchants who actually accepts bitcoin as a payment method. I am sure, this issue will be resolved eventually but as of now it looks great as an investment only!

Yeah no one should have 100% crypto (or at least not many).

I can still argue platinum is better for industrial practices than gold but jewellery is still dominated by gold and diamonds.

My personal portfolio is about 75% crypto and 25% stocks with around 12 months of expenses in a bank account just in case... (im at a higher risk due to age I wouldn't recommend this - and also I haven't rebalanced since the 8k region when it was 50:50).

I think also some of this problem is due to quite a few companies in the stock markets not paying dividends and making themselves speculation assets. I'm also not entirely sure why people would rather go for those than go for something that'll return you 5% in dividends a year plus have an average 4% growth than growing by 9/10% a year.