Topic: My view of wealth and assets specially now - page 4. (Read 723 times)

You are right that it is not at all advisable to enter into any long-term investments using borrowed money. Because the loan money must still be paid within the specified time. Meanwhile, long-term investments will not necessarily bring profits when the loan has to be paid. So yeah, we have to avoid borrowing for long-term investments. Not only in Real Estate but also in other long-term investment instruments. Even in bitcoin. And that's why currently more people are investing in bitcoin because it doesn't require large capital. We can even accumulate little by little. Likewise with gold. We can buy little by little. This is different from Real Estate, where you have to immediately prepare large amounts of money. And of course investing can only be done with money that we won't use for a certain period of time.

It depends entirely on where you live in the world.  Real Estate is often a fantastic investment, and owing debt is not necessarily bad at all.  I believe your view is a bit flawed here.

I mean you mention btc, gold, no real estate. Well what about traditional investment?  No one should be buying gold, silver, bitcoin etc if they don't have a proper retirement portfolio such and IRA of 401k.  Investing in the stock market is to to be investing in actual real world physical companies.  Far too many people start buying bitcoin before having any sort of traditional investments ..DONT DO THAT.

Gold has been around for centuries. It’s served as money as well as a valuable piece of jewelry. While a lot of nations may depend on dollar for there reserves, gold continues to be one means by which reserves are kept for all nations of the world. Gold has been the future of many generations and would persist in this order. That’s because, it agrees with the systems of the government of our time.

BTC on the other hand is where we’ve got a complete different scenario. With the case of utilization still widely debated and the whole idea looking like a revolution to what is consistent with our world today, BTC might take some time before it is given its space in our world.
With it working by the consensus of the people, I’ll say it’s agreeable to persist.

You are right not to trust cash because we all know that inflation in many countries has risen in recent years. Especially for a long time in cash money is a big mistake. Until recently, this was not a big problem in my country, but the depreciation of cash money reached incredible levels with an increase in inflation, which showed us that it was a mistake to stand in cash.

The real estate issue is changing in my country. It is a very advantageous investment that has a lot of disadvantage at times. It is really difficult to predict the time when this will be advantageous or disadvantageous.

All mentioned are great be it btc or gold or cash. In case of cash in Nigeria many already changing to $ in other to preserve value or mark margin, smart moves, but what of countries with stable currencies that's why real estate comes in because most of the time aside from Natural disaster it will appreciate or retain value even during distress sales

In Nigeria as well I always advice people to put their fate in real estate and Bitcoin as cash in bank is not advisable but with all good things said they all have their drawbacks

Of course Real Estate is definitely the most desired thing in this case. But the problem is that not everyone is able to enter this sector. So in reality not many people enter this sector. Unless you are upper middle class. Or if you are in a village some distance from a big city. Because in the Real Estate area it can still be reached by all groups. But in big cities entering Real Estate investment is not very easy. Because it requires large capital.

But we should have a goal there. Because demand for Real Estate will definitely continue to increase from year to year. And the price will continue to rise from year to year. But we can't expect any short-term gains from this one. Because this is only for the long term. And for comfortable and strategic areas far from conflict and war.

But don't let us force ourselves by entering Real Estate with borrowed money. Well it is not recommended because it takes a long time to get profits. I also like Gold as much as OP. But I also don't dare put a lot of my assets in gold. Gold for me is better to save as an emergency fund. Because gold is easy to cash in and everyone is always willing to accept it.

Well the real estate will be very volatile it's like long wick short wicks.
It's best to wait few years with real estate i know a lot people will fomo in real estate but market will be very volatile same thing with cars the used cars.

The assets that I trust most at the moment are more about Real Estate and Property. Although I don't have many yet. But I would like to have more in the future. Because the price growth is clearly visible from time to time. And sooner or later property will always be needed by people. Considering the human population which continues to grow rapidly at this time. Physical gold is my second choice. Because in terms of storing value, gold is number one compared to others. But way I make storing it, which must always be safe, really difficult for me. the third currently is digital assets such as bitcoin. I chose bitcoin based on the development of the digital world and the technological era which continues to develop rapidly. Sooner or later everyone will adopt it. I believe it. So I accumulate it from now on. I only use banks and fiat in daily transactions and they are still useful today. And everything can coexist in the future.

For me I trust Bitcoin/Gold but I don't trust cash. Most of the world's economies suffer from inflation, so I cannot trust cash anymore. Yes, cash is better than banks and electronic accounts, and I prefer to use it in daily transactions, but it cannot be trusted in the long term because it constantly loses its value.

As for real estate and property, I think that real estate and property are a good field for speculation, at least here in my country. I do not know much about real estate in other countries, but here in my country, real estate is a very good field for profit and speculation, and some here consider it a safe haven and buy real estate to preserve the value of their money.

It's an interesting topic because people have always been lost between assets that have 3 basic properties: liquidity, stability and appreciation and there's no asset that excels in all 3.
For instance, real estate is stable and can grow in value pretty well, but it requires maintenance that take some of the profit and usually aren't very liquid. You need time to sell a house and get all get all the papers signed. If you buy a car it's going to most likely lose value, so it won't have appreciation at all, but the market will be pretty stable and liquid. If you choose to buy a rare painting, most likely it's not going to be a liquid item and won't generate incredible profit, but will offer decent price stability. Bonds, just like bank deposits offer a bit of appreciation, decent stability and decent liquidity. The problem is that if you account for inflation you come to a conclusion that you're not making any money, just enduring.

What you own depends on your character. I'm a bit of a prepper so for me liquidity is the most important, appreciation is second and I care the least about stability, therefore bitcoin is an ideal asset for me.
I have some liquid and some illiquid assets and out of my liquid ones almost everything is in bitcoin. I have some money in the bank and some cash, but all my fiat money is not even 10% of the value of my bitcoin.

My father, who was raised in a socialist state, used to have 80% in a bank, 15% in cash and 5% in gold. This shows how different we are as people and as whole generations.

OP's view of investing in real estate is based on his country or experience. Some countries pay very high property taxes which can make the business unprofitable. But in some countries, property taxes are considerably low which can make the business lucrative. An example of a troubled or unprofitable real estate sector is the Chinese market. Many real estate business owners in China are currently going through a hard time that is crumbling the sector.

Banks are not trustworthy because they are under the control of the people and the government. Bitcoin gives you total control over your funds if you keep them in a non-custodial wallet because you have full control over your private key. Bitcoin has also proved to be a good hedge against inflation in most countries that are going through high inflation. It will be unwise to keep your money in banks where it will gradually lose value over time. Bitcoin is safer, more convenient and more profitable.

Online banking generally works really well in my country, so people don't face many issues with that. As for gold, I'd be somewhat afraid of a robbery to buy and store it somewhere, not to mention that it doesn't appreciate in value much and there isn't much point getting into gold if you don't have a significant amount to invest. It's also harder to sell fast, compared to cryptos, and it can't be used for anything directly, unless it's jewellery one can wear.
I disagree with the op's prediction of future money being backed by gold or Bitcoin. We're already past the gold phase, and Bitcoin is way too volatile for that to make sense.

Btc legal franwork ? ...btc is listed on instutional exchangers and there is a lot long story about London USA Market exchangers regards btc and eth...Im not gona go into full details but btc is not funny asset for very influential people the smart money owners.
Even If they take btc away from the most important exchangers wich is allready connected "market-center system" there will be a lot info before it happens and they have to give notice to the very wealthy and important instutions before they can remove btc.
To taking in all those facts i know my funds are safer in btc then in bank.

"btc / gold and cash" have solid security to trust these types of financial assets?

BTC  -this is an asset whose future within the legal framework remains in question because it goes against the interests of regulators.

Gold - after the price drop in the 80s (if I’m not mistaken), it has still not recovered to its previous levels.

Cash - just cut paper, the value of which is easily nullified with the new monetary reform.

everything is in a  gray area when you are  constantly alert but on the other hand try to advise yourself by  keeping it with a third party. Isn't that the same as giving up your rights? Gold and real estate have risks even Bitcoin has the same risks, here we cannot  play safe if we are not ready to face the risks. Because if there is a safe choice then  everyone in the world will experience wealth equally. Therefore there is always a risk for those who dare to bet.

Likewise with mortgages if you look at the profit cycle during the covid 19 pandemic it is clear that there is a big bubble that provides multiple profits. When placing any investment if you are able to understand the market situation and conditions then you can play in it. Now that the era of digitalization is almost familiar Bitcoin is the top of the chain where everything will lead to the same point.  Mass adoption has shifted towards increasingly expanding people access in the world,  they just need to make a  decision and be ready for all the risks.

Debt is just a tool like the other assets you have. Staying away from debt religiously is not a wise move. If you take advantage of the low interest rates, debt is a very good way to get rich. I probably owe 30% of my total net worth to the debts I took in the past before the central banks started raising them. When I did that, the rates were low and the prices were skyrocketing. Now the inflation is a bit slowed down because of the high rates but do you know what didn't happen? The prices haven't come down and they won't come down. (low inflation != price drop) They will still go up and more slowly now. That means every loan I took made me profits. Thanks central banks. I owe you one.

OP, you got the idea wrong on real estate. This is an asset that will always increase in value because humans needs shelter to hide their head and start a family. All three assets that you mentioned are very good asset and anyone that has an investment in all has overcome poverty. Bitcoin is the new one amongst the other and and due to its volatile nature, it has become one of the best but I don't think that it has been approved as a safe haven yet. I don't think that they will stop to use real estate as collateral as long as we are using fiat, it will be impossible because banks and government are in charge of fiat, if bank wants to give you a loan, they will always prefer house property, because they can easily use the property of sell it off and get their profit. Unlike bitcoin that is volatile in nature. What you said about gold is true because it is already a safe haven.

In terms of investment, Gold is already proven and tested by the public, so yeah. But, I'm not really sure if Bitcoin will be on that same level because what if there will be a banning that will happen again on Bitcoin? There are reports that a bank can go bankrupt and this scares the people but not all banks are like that.

There are people who don't trust their selves on handling their own money, because they lose it easily. There is also a worry about being robbed inside their homes. So, they can trust others to handle it. The banks serves different purpose than Bitcoin and Gold, so expect that there will always be people who will use them.

Someday I hope to get into real estate because it is an aspect that is always evolving. IF you look at the building structures from let’s say 30 years ago, you can tell the difference. And who is making all that money? The real estate investors of course. And yes, you can also live in it like you said, but I’ll rather get into it to make the money in it. Who knows what houses from the next 100 years would even look like? Real estate is always evolving.

Yep, if we only talk about material wealth, I think it is never enough to understand the whole nature of this issue.
So what really is the core of wealth that we seek here? Is it simply material things, things like knowledge, spirit, health... are also part of the wealth of each of us? Instead of just wanting to improve material things, the crowd often ignores what remains and lacks the balance of life. Like the way I come into contact with people who have millions of dollars in accounts, but they still cannot be satisfied because they do not understand the balance of life, blindly chasing after material things such as money, gold, real estate... even bitcoin... I think it's just an opinion that people don't see yet because then they can have/don't have to continue using the material to search for the rest.