Topic: How much do you have to profit in Bitcoin to beat other investments? - page 2. (Read 273 times)

It is good that you got 800% returns from your Bitcoin investment last year but it is not possible for now:

1) the returns like 1000% or above were easily achievable for early investors. The prices have skyrocketed now and thus there is not that much scope for growth. It will still be very profitable but you can get maximum 300% returns this year.

2) Many people do not have the patience to wait while the prices rise. For instance when bitcoin prices go from $10000 to $20000, they will sell for 2x. They will miss the possible growth in future.

There's another investment that is lower risk compared to bitcoin but yes, bitcoin is more profitable than other investment but it takes more risk and we don't know if you have a profit or you lose with it. Investing in bitcoin for sure profit is when you holding this for a long term. Just like when you invested in 2009 and until now you are still holding a bitcoin that you invested in that year, I'm sure you are much richer these days. So, in my own interpretation profit on bitcoin will base on how long you holding it from the time you invested, and there is no other way of investments who can beat on this.

When looking at any investment the reward is only half the story. All investments come with an associated risk. To make a meaningful comparison you instead need to look at risk/reward ratio. That is, of course, easier than said than done because risk cannot be defined as a simple percentage, it is to a certain extent a matter of opinion.

I'm long-term bullish on Bitcoin because I recognise that the potential returns far outstrip those of any other asset class. But I'm also fully aware that the associated risks are higher as well. The question I really need to ask myself is do I think those risks are correctly priced in? I think the market is underpriced, most people overestimate the risk, so I'm invested.

You can also add the % of the inflation to those 10%. In most european countries countries the common bank deposit are not offering any interest. In some countries there are even negative interest rates. If the % on the bank deposit is over 5% then you should probably expect a high inflation.Imho only some kinds of obligations  can be concidered as a safe deposits.
Anyway Bitcoin can't be compared to such traditional assets because have different amounts of risk. With the same success you can buy a token, then it will get 20% growth and wou will say that  you got more money then you could get for 3 years of holding some obligations. You can also count stocks and penny stocks and find that there are some more ways of getting some fast and lucky money (or losing everything).

Why do you need to know how much interest you earn? Bitcoin brings me good profit and I use it to earn more than with Fiat. This is enough for me to support the use of bitcoin at all times. Investing in bitcoin is the wrong direction. No one can think of the idea of investing in the dollar. People should understand that bitcoin is a currency. It needs to be earned and spent.

To decide the profit percentage from bitcoin to beat the conventional investment, we need to first benchmark the conventional investment strategies. Gold is an excellent investment instrument since decades and used by majority of the households for capital protection. Also whenever we have seen the global stock markets going down, Gold was there to save the investor's money. So if we benchmark the return from Gold, bitcoin definitely beats it considering the return. Having said that, we also need to understand that past profits or performance can't really guarantee the future performance. Investors like me, who had entered the crypto market long back, bitcoin remains as a most profitable venture. But those who have entered during late 2017 when the price was at peak, bitcoin investment is the baddest decision for them. So it also depends on the timing of your entry. We can further complicate the scenario with inflation and risk analysis.

But what important is that, we need to always have both types of investment in our portfolio. Because diversification is the key to a healthy investment portfolio. So it is always advisable to have bank deposits, Stock investments, precious metals in your kitty along with crypto currencies. Because majority of the bank investment is providing guaranteed return unlike bitcoin and crypto investment. Crypto can go down to any level within a very short period of time unlike bank investments. So to protect and appreciate your capital, a good mix of above mentioned investment instruments is required. We should not rely on bitcoin investment alone.

No investment is as profitable as bitcoin, if we consider classical investments (not ICOs), being the more like it the investment in new companies, especially tech ones. However, high potential rewards come hand in hand with high potential risks, so when I invest, I not only consider the potential profits but also risk-mitigation by diversifying.

Also, as @hugeblack points out, past returns don’t guarantee future ones.

For me if I'm earning 0.2 btc a month. I think for me it beats my other investment. Can't wait to enter trading to profit more.

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Source:
#1 https://twitter.com/erikfinman/status/955241825555681280

This is a very open discussion, but a topic that needs some attention.

As an investor I always have to compare my actual profit on a year to year basis, to consider if I should continue investing in that commodity or currency or stock etc.

Let's look at Gold for instance :  https://goldprice.org/gold-price-history.html < In 16 years my profit would have been +/- 343.78% >

Let's look at Silver for instance : https://silverprice.org/ < In 16 years my profit would have been +/- 256.15% >

If I deposited the money into a fixed savings account at say %10 p/a combined interest = 160% over 16years. Feel free to make the compound interest comparisons.

https://www.gobankingrates.com/banking/see-interest-rates-last-100-years/

These are very crude statistics and cherry picking comes into play, but it does give you an idea what the Bitcoin price needs to be to beat some of these investment strategies.

I think my more than 800% profit with Bitcoin last year, overshadowed the profits from other investments I could have made for the last 16 years.

We need 1 or 2 good years like 2017, to render all other investments null and void for several years. ^smile^

What other investments comes close to the profits that we saw in 2017? { 1 year }