Bitcoin Forum

Hello! Thank you for considering my topic: Compare Bitcoin to Other Investment Instruments (Stocks, Real Estates, Etc.)

What do you think are the main difference/advantage/disadvantage of Bitcoin when you compare it to the most common investment instruments like Stocks, Bonds, Real Estates, etc.

Thank you!

In my views Bitcoin starts from the point where the scope of equity ends. Equity is categorised in three types-
1. Less Risk, Less Return
2. Moderate Risk, Moderate Return
3. High Risk, High Return
But when we talk about Bitcoin, its way ahead. If talk in equity terms then it is "Super High Risk, Super High Return". In case of stock/shares, major shares always lies with parent members (directors) of a company and they can manipulate market position with key decisions or internal trading but in case of Bitcoin, everyone is owner and every owner has considerable degree of control over market depending on units he/she hold.

You cannot compare investing in bitcoin with real estate investments. In the case of real estate you will always be a product that maybe will cost less, but will always bring income. With bitcoin it's different. This is a very large income with a much greater risk to remain in General with anything. It seems to me that bitcoin is closer to speculation than investing.

I think the BTC and crypto market in general is (naturally) still very immature, volatile and chaotic, so there is a much higher risk compared to the asset classes you are mentioning. On the other hand there is an un-comparable potential for returns. Don’t put all your money on one horse, especially if you really can’t know whether it will fly like a superman or lose legs and die, but the extremely high reward potential seems real so putting some portion of one’s wealth into crypto looks like a smart thing to do.

It is not always speculation,if the bubble happens just because of a mere speculation the price would fall without a doubt,just take a look at what happened during the price rise of  2013,the price was increasing because of mere speculation and the fall was even larger,consider bitcoin investment as investing in stocks,but with a higher risk rate and high profit rate can be expected from bitcoin.

It seems the bitcoin is the best choice because the most profitable investment, all investment looks stagnant and difficult to benefit even other investment ((Stocks, Real Estates, Etc.) continued to decline.

For me, I see bitcoin as an advancement to the stock and bonds simply because those ones are commodity while bitcoin takes a step further by also going towards a medium of exchange which those two listed are clearly lacking. On the issue of real estate, I see that as a more stable investment which volatility is mild if any at all compared to bitcoin whose volatility is sharp as anything you can think of.

Advantages of Bitcoin vs other stakes:
-Highly divisible
-Easily transactable
-Relatively easy to acquire
-Free for all users to use without mediums
-Low barrier to entry

Neutral/Good or Bad Characteristics:
-Volatile (investor v. speculator)
-Anonymous (individual v. authority)
-Hardcap of coins (Limits investment encouragement)
-(Building on above) Deflationary (Coins are lost when they're lost, as of right now)

Disadvantages:
-Not tangible (Although only Real Estate fulfils this anyways)
-Based on a network which operates essentially at the will of governments and is not fully independent (although everything does, really, also a weaker disadvantage)

There's some visual piece that details BTC vs fiat and gold pretty well somewhere.

Stocks, real estates, can be manipulated more easily by people or the government. For example if you buy stocks of Apple/Google, the prices will be directly related to how well the company is doing, or if you buy houses, the prices may drop/rise if the government decides to build another apartment next to it.

But for Bitcoin, since it is decentralized, the users are 'governing' the price of Bitcoin in a way, so it becomes a much more simpler supply and demand investment. It is digital and limited too, so Bitcoin is very different from other means of investments.

Bitcoin is more reliable in terms if future and the others are not. Who knows real estates may not have that much importance in the future as it is having currently. Stocks are very old and they may loose value (according to me) due to advancement in the field of blockchain technology. I think that way because we can see how bitcoin outperformed in the field of market capitalism in the recent years. So after decade years from now we can see it as blooming industry.

I think that bitcoin has a lot more potential than stock markets and real estate. In a lot of countries the real estate market is already very heavily saturated, and so is the stock market. To enter these markets you'd also have to have a ton of wealth beforehand, therefore if you are just an average Joe you're probably noth going to be abel to invest in real estate/stock market.

With stock markets it's completely speculative. Real estate i guess you can live in, but bitcoin is completely different. It is a lot more liquid, each unit is the same as the other. You can have appraisals for your house but you know how much your bitcoin is going to sell for. Also, transferring ownership with bitcoin is a lot easier. All these reasons end up to one conclusion - btc is probabl ythe premier investment to make in 2017.

Bitcoin, although is volatile, is very fluid and easy to transfer and liquidate fast, whenever you need it. It also has a limited supply, which makes it a hot investment over time for those looking for a medium to longer term return. With life as fast paced as it is, owning liquid assets that have a chance for heavy appreciation are going to be very attractive correct?

The real comparison is to other currencies. Currencies are bought, traded, and sold. Bitcoin is another currency.

Currencies have disadvantages to other investments. There is only ownership of the currency. Stock represents ownership of a company. Real estate, ownership in the land and property. The advantage is you don't have to rely on the good ethics and sound decision making of a human to ensure your investment appreciates in the future. All other currencies rely on the actions or full faith and credit of the Government that issues the currency.

Fortunately for Bitcoin, its investment value hinges on the faith that each of us put in to the currency, the agreement we all make with each other that it does have value. I'd rely on that more so than the actions of some human I've never met, who can be bought, sold, influenced, and exploited.

In comparing the classes of what we have there against bitcoin, from my point of view others are assets while some are current because they can be easily converted into cash, the other real estate is a fixed asset and they are made to generate revenue. When it comes to bitcoin, it also shares the characteristics of a current asset but in this case more liquid than the others but aside from that, bitcoin is also used as a form of currency for exchange which clearly all others does not possess.

the real difference is that bitcoin is a currency should be comparable to both forex market and a stock market, bitcoin is everythign all at once, you can't use stocks to buy a game on steam...


well it can in some form of indirect investment like loan or buying pos altcoin, maybe not directly but still doable

Honestly I have stopped investing into other investments opportunities after started considering bitcoins as a serious investment instrument for safer tomorrow.

I am just holding what I have invested some 5 years back into stocks and real estates as I am fully focusing on bitcoins for regular investing from my day job. When I did the calculations on ROI for certain period of holding, bitcoin alone still standing tall. I believe this is more than enough justification to continue what I am already doing.

Stocks - Move up and down higher risk means higher returns, Fortune goes to the brave and those who are willing to be like them. Losses and casualties can result.

Bonds - Stable lower risk and as a result less return - Slow and steady wins the race. That is if you live long enough like a turtle to see the finish line.

Real Estate - Moderate risk, various means of maximizing income primarily renting, has upkeep costs aka taxes but can be worth your time if scaled properly although their is always tenant fire disaster and other concerns.

- Live a modest life but feel relatively secure. But depending you can be between stages of less broke than other people who are more broke than you and not reach full financial freedom.

Bitcoin - Doesn't generate its own growth but has utility and usage, like Gold it is held but also used at times a tool of financial freedom and also financilization.
 - Explorers seeking a new path in an uncertain road but by paving the way forward reap the most rewards in a new field. That said they may fall into the pitholes and traps since they are the first explorers where others have a rear view mirror.

Bitcoin has been getting a lot of attention from those who are usually very traditional with their investments. Now, it is not surprising anymore to read articles about investment strategists giving their opinions about how bitcoin is going to fare against other financial instruments that have been with us for a while. Now bitcoin is also being compared to gold and stocks because of its potential to bring profits by means of price increases.

Every investment will have their won advantages and disadvantages and these investments will have some risks as well. So individuals need to choose a proper investment based on how much risk they can take. Real estate will be the best option because it will surely give a good profit but it takes a long time to show the result. Bitcoins are more volatile and it gives an opportunity to make money both in short and longer term. To reduce my risks I like to invest in all of them some money.

Investing in bitcoin is more appropriate this time since btc have higher possibilities of increase and chances that are earning can double soon in time.

One thing that I see most clearly is that Bitcoin does not depend on the State or any financial institution. As for other forms of investment such as stocks, real estate, gold investment, Can be interfered by financial institutions or the government. Real estate, share are traditional forms of investment, and Bitcoin has been around for 10 years. It's an electronic currency, encrypted and decentralized, its value of it has now risen quite high but it usually fluctuates. In general, Bitcoin, stocks, real estate are all good investments if we know how

One major issue with real estate and stocks are stagnant wages. When wage growth is limited over a period of time, it decreases the buying power of consumers. Low wage growth can lead to decreased purchase of real estate(as fewer consumers have the wages to afford it), which in turn can lower the value of real estate on dwindling demand.

Stagnant wages can also negatively affect the value of stocks. Decreased wages can lead to decrease buying power which in turn negatively affects retail outlets, leading to decreased sales/demand. These variables can contribute towards the value of stocks diminishing on decreasing demand.

Crypto could be a better investment than stocks or real estate being that it isn't truly mainstream, its in a growing phase and demand for it could increase by a substantial portion. Which in turn could translate to higher value.

Exactly, comparing bitcoin to the real estate i think the winner is real estate if we're talking about safest long term investment. Bitcoin is a risky investment due to its volatile nature and the price also is unpredictable while real estate it's price is always rising up, safer, and it is good for securing your asset but it needs long time to get profit one more thing is selecting area before investing or buying a real estate, in real estate area is very important you may gain more profit if your real estate are in good place. Bitcoin is better for speculate, i might say better for short term investment.

Partly true but Bitcoin has the potential to grow even greater in future and so it's likewise a potential long term investment opportunity because a lot of people are getting to know day by day and it is driven by the demand which comes from these newcomers and for this consistent increased demand to dwindle will take a lot of effort that's why it is reliable for the future just like the real estates.

That’s true. Bitcoins have no comparison with any other investment instruments. It can all alone provide you with profit which all other investment instruments can do altogether. It has an amazing future as compared to any other instrument. So my advice is to stay stick to it.

Out of the all other investments,bitcoin is the safest investment as it works on a secured block chain system.We have full control of our investment in bitcoins.Bitcoin price has increased four times within last eight months from $850 to around $3400 today.We could not expect such a huge return from any other assets other than bitcoin.

Not only this, but also the daily fluctuations in price are high enough that can in few good trades match a return from a year long investment. If one would buy at the price at let's say 2500 and then sell even the same day when it hits 2750 you get a 10% gain basically in a day or two. Bitcoin can just like that definitely smash any banks yearly 5% saving accounts.

But it's also unpredictable enough to be consider a really risky investment so it could be maybe compared to some penny stocks tradings and people who buy that stocks for some cents and sell at dollar, but this kind of trading seems just like altcoin investments. So yeah, traders and rich businessmen from all over the world are probably going to join cryptocurrency world, but I guess they already have done it.

No in my opinion Bitcoin not safe than Gold or Real Estates, most trader are want earning money from Bitcoin market for have them.
Because if you think again about define Bitcoin, it's just a virtual value and still not popular on the world.

Yes bitcoin is good, but you are not always sure of the profit you will make; it’s possible you are likely to lose. But with a legit Real Estate investment, you’re sure of a particular percentage/share/profit. But I will still say Bitcoin is the best above all of them, because you’re in control of it.

Comparing bitcoin to other markets isn’t too fair. Because everybody is a king in his own lane. In the stocks market there is the big fish in there, so also the CFD and other market. Bitcoin is the big fish in the cryptomarket.

It depends on the field of interest of the investor. If they're into real estates, banking, stocks and bonds. They can tried both the real one with the trusted company and with crypto or btc in the most successful iCO. It will depends if they trust btc enough to invest their money online or they wanted it in a real built company. Bitcoin Advantages is that we do investing in any fields whenever we like with no limits of how much unlike in real once we need to have bunch of money in order to participate.

Investing in Bitcoin is really different from Stock real estates, etc. but can really good in term of ROI. The thing is you need to updated with everything in the ecosystem around bitcoin and follow the trend. To compare with real estate, it's just a buy and forget for 10 years

I think there is little comparison between them because bitcoin works in completely different way. There is bitcoin which operates completely virtually and there is stock/bonds/real estates which work on paper and with government regulations. Both are very different set of values and characters with improper comparisons. Due to decentralised nature bitcoin works peer to peer which advantage when considering anonymous transaction with big volumes of money involved. The tax is benefit if we are trading in the bitcoin form and as long as we don't sell the bitcoin for fiat. However, stocks and the stuff are completely named and anyone can track you down for the trades and investment you do. I think the list is very big but the major concerns are about the money volume freedom and anonymous transactions. :-)

It is pretty vague to compare everything. For instance not all stocks are created equal, some stocks are good for investments others are only good for short term plays. Also comparing Bitcoin to Real Estate has a lot of differences in Bitcoin you can start with little capital however in Real Estate you need to have a big capital to buy a piece of property. Also real estate investments only appreciates in time, Bitcoin on the other hand fluctuates even if it gets older and older.

When comparing, one needs to be mindful of the fact that only likes is compared with likes but for the two categories we have here, I don't see them sharing any similarity because while one category is characterised by  volatility, freedom, decentralisation and even across borders, the others are complete opposite to what we have. So there is no way to compare in my opinion as to which one is better or worse. If you can take the risk, go for it and be sure you are doing so well informed.

There is no comparison b/w Bitcoin and real estate it is completely different. Investing in Bitcoin needs just money. But we have to invest in real estate there are many rules and regulations and many paper work formalities heavy risk. Suddenly the land value goes down that's it. Bitcoin is not like that if today the value goes down tomorrow it will recover. And stock exchange i don't believe i saw many of my friends lost money in this stock market.

Real Estate and Gold are really passive income, when we investing to them, we don't need worry about the future of them if us checked carefully the potential (for real estate). This is difference of Bitcoin and asset stable like Real Estate or Gold.

It's hard to compare btc with other investment instruments. They have their own charecteristics and most likely that they have little to no similarities at all. When we compare, usually it's about the same thing but one with an additional feature from the other one. In this case of yours, the only thing common with them is "investment" but btc really differ from the others mentioned. Btc is decentralized, unstable and volatile but gives a really great profit. Anyone who wants to have a portion of it can have it either by buying or doing online jobs. While those other investment on the other hand requires big capital and you can't have it in portion. Take for example the real estate, you cannot just do an online job and expect to have one part of it. Can we bought the garage area first then followed by the living room? No.

What I have understood from your comparison is that bitcoins have a big edge over other investments. No other investment has power of doubling your money in short time than any other form of investment. I will suggest all for investing bigger portion of their savings into bitcoins to have a luxurious lifestyle.

Bitcoin is not stable investment and it is running all by means of a decentralised server and involvement of people who are trying to make it better world.

There is little risk while considering bitcoin investment in terms of its volatile nature. The bitcoin is something which may or may not stay for longer time and due to its decentralisation there is fear of government implications regarding its use.

Stocks, bonds, real estate has the real value which is set by government and it has got documented proofs of existence as well as values. It is more reliable trading asset or property which can be sold and bought to anyone in the world whereas bitcoin has less trust when considering global popularity.

It has pros and cons but somehow it's working for now.

But look bitcoin is big fish in all over global market, yeah you are right in some way but you can’t be able to say that you will get high profit only from stock markets, there is too much risk in stock market, and in bitcoin risk percentage is much less the stock market. If I have investment then I will directly move and buy bitcoin from it.

Bitcoin is a hedge against inflation, so the asset you should really compare it to is gold. And the reason to buy bitcoin instead of gold is that the gold market is heavily manipulated (plus gold is hard to move).

This is such an interesting topic and will only get more and more discussion as bitcoin continues to gain prominence.

It will actually be very interesting to see how business scholars/historians evaluate and write about bitcoin's history in the future.

It is definitely more risky at this stage when compared to investment vehicles that have been around for a long time and are "more accepted". But, that being said, it has to start somewhere.

I think it is most comparable to gold, with it being a scarce good and able to be used as a store of value.

I prefer Bitcoin than stock market, but I think Real Estates investment is better than Bitcoin... Why do people invest in Bitcoin? Because inflation doesn't eat your money, etc... The same happens with Real Estates. Inflation won't eat your investment, you will have profit anyway. There are few negative points: You need big money to start investing on it, the Real Estate's value can drop depending if your neighboorhood, city is dangerous, poor, etc.

all of them have a different disadvantages and advantages but real estates had more slightly advantages between those investment because every years the price of Real Estates always be grow so the possiblity to loss your investment are pretty small rather than other investment but indeed the profit from Real Estates are special but not happened instantly and for long term investment only such as for next 10 or 20 years

Yes I think so either bitcoin  or investments in the form of assets such as real estate, plantations have prices that do not fluctuate and relatively from year to year value will increase, while for bitcoin investment is uncertain because the price is still fluctuating so it has more high risks from investment real estate like realestate and plantation.  ;D

Bitcoin is an internet base commodities or assets, so without internet and blockchain bitcoin is nothing. it is non-physical assets and the only proof of investment is the private key or digital wallets backed by digital signature of blockchain though its anonymity even your worst personal enemy who are into bitcoin can't refuse to sign as digital witness of your private key from blockchain. for it is unregulated as of now, proof of ownership through legal matters is hard to obtain whenever goes wrong of your investment it is hard to file a lawsuit.unlike gold, real estate or stock a proof of investment is through certificate and title as a strong evidence of ownership with legal documents and protected by government and state whenever something goes wrong, a lawsuit can be filed easily. in terms of longevity, bitcoin is a software and prone to obsolescence and could be extinct in a couple of decades among other investment mentioned above.

In terms of returns, Bitcoin easily defeats real estate and stocks. It has surpassed various traditional assets this year in terms of ROI. There are indeed some penny stocks that are highly volatile and have potential to give huge returns. But they are way too risky.

In terms of risk, Bitcoin might be considered risky by most of the people. But the truth is Bitcoin has proven to be less risky than stocks or real estate(after 2008 crisis). Bitcoin has always risen in long term if we go by analysing charts. With some patience, Bitcoin never fails to give huge returns.

But in terms of marketcap and acceptability, Bitcoin is way too behind stocks and real estate. This is mainly because of its decentralised nature. There is no proper awareness campaign or advertising.

I dont think that their is much difference between stocks , bonds and Bitcoins as both are having same risk, in investment option and also in trading option as both gives high profit high risk. But in Real Estate it is both risk and not secure. So i consider Bitcoin as you can earn freely by doing lot of tasks but for stocks, bonds and real estate you have to invest and take risk to earn.

I might not even consider Bitcoin as an investment in the first place, I may consider it as some kind of trading asset because of how it is more suitable for short term plays because of how volatile it is. Also it is pretty argumentative about being the "best in returns" as from stocks and real estates are different from each other, what I am trying to say is that not all stocks have the same returns to one another, same can be said to properties. If I were you, you must compare Bitcoin to a particular stock like Microsoft or Google perhaps. Because if you want to compare Bitcoin to Stocks you must be comparing the whole Crypto market instead.

I agree with you on the chaotic part but isn't the chaos and volatility that makes bitcoin value surge almost all the time, even though it tends to drop sometimes, but we can all agree that bitcoins and maybe other cryptocurrencies always seem to rise and therefore make money for their investors.

Bitcoin is in some points similar to stocks.
You can handle it at exchanges, both have charts that can be analized and these charts somehow seem to have similar ways of behaving. At least until now.
But when you buy a stock of a company, you have numbers of that company you can base your investment decision on.
With bitcoin, you basically have only the way it developed in the past. That makes it very difficult to say what a fair price for it is.

In terms of the schema and work process, yes stock, bitcoins and real estate are almost same. Very well said that they have same investments, trading options in stock and bitcoin. Real estate is also some sort of same thing but high risk with no security is there and insecurity is just no present in bitcoins and stock.

Bitcoin is not comparable with the real estate, bitcoin is same with stocks, at least there are some exchange that already traded the bitcoin in there. But some people are trying to understand the bitcoin as a commodity. But bitcoin was having a better volatility than stocks and low chance to manipulated by some parties.

I don't know from where you got the idea that Bitcoin isn't good for long term holding or investment. I have been holding my Bitcoins for more than 2 years now. Today I am sitting on almost 20x profit which is still growing(that is why I see no further risk). Bitcoin is indeed highly volatile and thus can be good for short term trading. But you can very well go for long term investment and returns are huge. Regarding comparison with a particular stock. I compared it generally with some large cap stocks which are less risky. There might be many small cap stocks which are highly volatile and can give huge returns. But they are very much risky while Bitcoin is not as it's being growing year after year. So when it comes to ROI+less risk, Bitcoin wins the race.

Yes this true. Real estate don't grow like bitcoin. If you invest in real estate you will feel the profit when it step in 10-20 years, I mean the profit is not that big. But with bitcoin even you hold it for short, mid or long term the profit will still be good. That's why many investors are switching their assets into bitcoin as they see this as a great investment of all.

Bitcoin and other crypto currencies are fast becoming the stars of the investment world given how big the potential returns that they can generate. Of course the risk of volatility looms large but it is something that is really associated with such forms of investments. Big risks and big rewards go hand in hand. The traditional forms of investments are still good but they might take a back seat once bitcoin becomes more known outside of the bitcoin community.

well I don’t know about other currencies but according to me bitcoin is the best ever. Bitcoin is an independent currency that does not depend on any financial state but other investment instruments can be interfered by other financial state so for me bitcoin is the best currency and it is long lasting because the bitcoin currency is using since ten years so bitcoin is more trust worthy.

Currently, there are no investment assets that yield could compete with bitcoin. But you can never relax. This is a very risky method of investment. Nobody knows what will happen with bitcoin. I want bitcoin was the first currency and then Deposit the coin.

The success of a particular investment also depends on how a trader or a investor will have the time to manage every transactions and earning that could be a part of your life. It is a good thing because it is a great part of development and growth to stay in a specific mode or way of transactions.

Stock ,bonds, real states etc. thing that exist in physical can also be done in both but first and for all some coins started in crypto and theybwill only apply this in applications or things so that the things in physical maethod can be faster and improve more to catch up. I don't need ot compare because i do not take those advantage and disadvantage in a particular matter i only need to enhance it and both do in the same way.

Comparison isn’t a good tool when it comes to the market, although bitcoin is a king on its own, it has its own flaws which other markets lack, which makes other markets better than it in some ways also.