Topic: Indian Stock Markets VS Bitcoin (Read 226 times)

If we are talking about Individual company's shares then the returns you mentioned is possible but what I said is an average.

Let's compare two renowned company shares here, ITC and Tata Motors.

ITC's growth in the last 1-year time frame is around 24% but if we see its 5-year growth then it's 53% so on an average it's growing 10%

While Tata Motors share growth in 1-year time frame is 55% and 5 year growth 236%.

So if we are good enough to pick the companies which is good reputation and potential to grow then high returns is possible. But these returns are nowhere near when it comes to Bitcoin that is probably why younger generation choose to pick bitcoin and other cryptos.

Most cryptocurrencies, especially altcoins, can be very risky and might drop by 99% in the long run. maybe, some crypto with good projects could be a smart investment for short term like 1-2 years.


I didn't have my Aadhaar card linked to my mobile number, which was needed to open a demat account and receive the OTP.
Now I have my Aadhaar linked with mobile number and can invest in stocks too.

I beg to differ here. Returns from stocks can be as high as 60% over the years, I am talking from my own experience but if you get trapped by the brokers' words and buy shit-shares, you will end up in 20% loss, that too done in the long term, short term is even more risky.

Crypto is always more risky on the day but safer on the long. Having the hang of both, I dont compare them much but can only see their good.

It not an issue at all. Its a personal choice of whether they are willing to undergo KYC or not.

Getting used to stock market investment really takes years so for someone who tasted the returns from cryptos will think stock investment is useless because hardly the returns from stock averages 10-16% a year which can be possible in just 34 hour time frame in crypto investment.

I don't think opening demat account doesn't need much intense KYC, just Aadhaar card and video call verification is enough, and you can open via banking apps with nothing and just paying the subscription fee.

KYC should not be the reason for not investing in stocks. There are a lot of good stocks I could buy during the bearish seasons specially during the pandemic and they are all showing >100% gains now. However stocks are not an overnight game, I have been doing this for years now and hence I am still in it.

Crypto related exchanges and KYC is still something greyish to me. I would rather wait it out before selling for INR - maybe I would not sell at all, just buy giftcards when needed and accumulate on what I have.

I started investing by watching stock market influencer videos on YouTube. At first, I thought bitcoin and crypto was a scam based on their views. When I wanted to open stock trading accounts but didn’t have the required documents, I started researching cryptocurrency. I thought KYC was easier with cryptocurrency. To my amazement, crypto wasn’t as shady as some people said. And now i invest in both.
I invest small amount which is non taxable.

I prefer investing in both rather than considering investing in only one. Both Bitcoin and the Indian stock market have their pros & cons. As you said the capital gain on profit from Bitcoin investment is 30 percent whereas in the Stock market, it depends on the tax slab that you fall. There is no doubt that the returns that Bitcoin has generated in a decade are nothing to what an MRF stock has generated in more than 20 years. If you have the money and can handle both portfolios then investing in both is better than in only one.

In terms of return, Bitcoin has delivered much better than many other investment assets. There's no question or concern! But the question is more about taxes. If I am an Indian investor investing in Bitcoin, then I would have to pay 30% tax unlike the stock market. So we need to calculate the post tax return in reality. So, now if you do the math, the stock market will look much more lucrative than Bitcoin if you are an Indian resident.

Everything is not gold that glitters. If you find a way to avoid taxes, the gain is yours. But if you are standing on the right side with law, then stock market delivers a much better return along with dividend income. Consider tax, while doing such calculations.

I do understand what you are trying to say and the explicit version of your statement is "diversify your portfolio” Personally I had experience when assets whether its stock, gold, real estate and bitcoin goes red but if we have the assets in different classes which ensures a peace of mind which is important or it will have adverse effect on mental health which will leads to further complications and that can affect our decision-making abilities.

I have investments in all the traditional markets and crypto. All have their pros and cons and knowing only one of them is a disadvantage.

One thing I have understood over the years is that speculative trading carries a mental health problem. Hence a cushioning effect is necessary and that is where different classes of assets come in. One day market A may crash but market B might not. You mind gets cushioning from the fact that you have investment in market B too.

Those who have experienced the market will understand what I am trying to imply.

Coming to stocks I mostly go for long term holding of well reputed companies, their dividends keep kicking in every quarter.

think of it.. nifty falling 3-5% in a day and bitcoin falling 8%-15% in a day which is way riskier than stock market.
where there is a high risk there is a high reward.

Regulation would take time as per the timeline submitted by IMF & FSB in the G20 summit. We cannot wait for regulation when we don't know what will be in it.

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In the meantime we can share with someone in our family our wallets private key. Life is unpredictable, if anything happens to us our family will have access to the Bitcoin or crypto in our wallet.

It is not that Bitcoin cannot be inherited in our Indian society. We do share have a joint bank account with our partner why not have a multisig wallet with them. Keep your Satoshis in that wallet and pass on the information to your kids. Nothing is impossible in India.

The problem of inheriting bitcoin is genuine but the workaround is there by creating a will that passes the coins to the heir.
But if the person has not created any will then surely the coins are lost if he hasn't created any backup for his family to find out.
I guess this is the importance of KYC documents and declaring our assets to the government.
May be after the regulations are set there will be an implementation for this as well.

Oh yes I saw this as well. Infact I have had a lot of encounters with people who actually found a few lacs in their assets because their fathers and forefathers left some shares with them. Infact government has even opened a portal where you can check if you have any such shares on name of your father or grandparents etc. One problem this thing can't happen in bitcoin because there is no way to get the private key back once lost.

I don't think this comparison is fare because there are other shares in the stock market which has performed well.
Although it might not have exceeded the returns from bitcoin yet there are few shares which have given great returns when compared to other assets.
Besides that, bitcoin is relatively new and we cannot guarantee that in the next 10 years bitcoin will generate the same or more returns when compared to last 10 years.
I personally think as the price increases the returns will substantially decrease over time.

I remember a video that circulated on the internet about a person calling ZEE business channel. The caller had found that his grand dad had purchased 20k shares of MRF in 1990. He wanted to know the current valuation of those share. It was revealed to him that those shares are valued at 130cr. I agree diamond hands always win but I don't agree that Bitcoin is the only asset that can give you good ROI. There are others that are giving or have given good ROI both in crypto & stock market.

No doubt I support crypto market a lot, but the truth is it's not fair to compare it with stock market and claim it's better than stock market. We all very well know that stock markets pricing atleast in a longer term has been based on prices derived directly through performance and earnings of companies which too have grown at a very similar scale, while Crypto markets run has been more on hype so far, the projects even though have been launched but nowhere can we see the real word value addition that they have delivered of such amounts. Also it's like comparing a highly risky investment with a relatively very low risky investment. Obviously with change of risk the returns changes by too much.

Lastly a very big point is, you are comparing the market indicies returns with bitcoin return, compare it with an individual share like Bajaj finance, which too has been insane.

Traditional forms of investment cannot give such returns in the long term. I remember my father always encouraging me to invest in property and for the long-term gain and tax benefits. In a decade's time, a property cannot give 200x returns like Bitcoin has done. There are people who would say that Bitcoin was cheaper in 2013 and it is not possible to make that purchase of 1 Bitcoin. Yes, I agree it was cheap in 2013 it is still cheap in 2023 as there will be a time when the price might go beyond 100k. A small invest now can give you the same kind of ROI in the next 10 years.

In my opinion bitcoin is way ahead of the stocks in terms of returns and the math you provided clearly explained the difference between stocks and bitcoin  but for some reason still there are economical experts believe that bitcoin is just a bubble, Ponzi, money created from nothing, etc, and I don't really know how long it will take for them to realize the bitcoin is real thing.

Younger generation may catch up with the trend so the potential to grow further is there so if anyone is ready to take the risk then now is the time cause better late than never.

Recently I came across an article that celebrated the Indian stock market's performance. It seems the Indian stock market has delivered a 10.9% return, which is higher than the US & China.

It is great news that the Indian economy is shining and growth has been straight upward in the last decade. As an Indian, it makes me proud when I recall where we were in 2013 to where we are now in 2023. Within that emotional outburst of pride in my mind, a strange question popped up, which was to compare the ROI both from Bitcoin and the Stock Market.

Let's do the math for the Indian Stock Market. If you had invested $100 ten years back with an ROI of 10.9%, your money would have become $235 approximately by now. Not bad considering not many bank FDs or mutual funds are able to generate such an ROI.

Now, let's do the math for Bitcoin. Again, the investment amount in this case would be $100. In August of 2013, the average price of Bitcoin was $135. Considering the price, you would have bought 0.74 Bitcoin. In August of 2023, the average price of Bitcoin was $27,297, which would result in your $100 investment growing to $20,200 ten years later. That is a 201 times return on your initial investment of $100 or, in simple words, a 20100% return.

Think again - which is better, Bitcoin or the Stock Market? If you are someone with diamond hands, then Bitcoin is the right investment. The potential for enormous growth and returns far exceeds traditional investments.