Which one to buy? Stocks Houses Gold or Bitcoin or Bonds?

[AK47-]

I am a fan of diversified plan. But if I had to choose one, I will go with bitcoin. I think housing market is a bubble ready to burst. Gold is pretty but of no use to me and stock market needs experience. Moreover, the brightest future is of bitcoin. Bitcoin to go.

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[Richard Branson]

And gold? Bitcoin is like digital gold, it's gold v2.0 because it is more portable, more divisible. Bitcoin has better potential as well.

Gold is a security, bitcoin is an investment.
Holding both is the way to go.

[akar87]

And gold? Bitcoin is like digital gold, it's gold v2.0 because it is more portable, more divisible. Bitcoin has better potential as well.

Gold is a security, bitcoin is an investment.
Holding both is the way to go.

If I have 100%, the first I buy is 50% gold. Shares or the remaining 30% bond I bought bitcoin. Gold provides long-term benefits, savings for my son someday.

[raven7886]

A couple of BTC (20-100) is a good investment. But never put all eggs in one basket (BTC).
Diversity is key.

I traded some BTC against physical gold to lock-in some profits and rebalance my portfolio after the recent price rise.

Don't diversify too much. Focus on Bitcoin, there will be another global economic crisis, probably withing next 5 years.
Global economy hasn't been fixed at all, managers and banks never learned their lesson after 2008 crisis.
Soon bonds, stocks and fiat money could be totally worthless - only Bitcoin, a system which is not a part of official market will survive.

What made you think bonds, stocks and fiat money will be totally worthless?  Honestly there is more possibility that bitcoin will be the first one to be worthless once it does not solve its scalability issue.  But of course being bitcoin enthusiast, i will choose Bitcoin because of its uptrend price.  Hoping scalability issue fixed and political drama between two camps fades.

Well everyone stepping into a business is for to earn not to lose all what you have but, you also cannot deny the factor of risk with every investment that you make. Risk is always there with the investment, no investment in the world is 100% safe. Keeping this rule in mind you need to study things if you are just a dump person and cannot determine or forecast the future of any business after studying it. You just need to do a SWOT analysis and you fill find the answer by yourself.  

I don’t agree the SWOT analysis can be done by anyone else; it can only be done by that business entity by itself. How would you know the Strength, Weakness, opportunities and threat of any business?

The SWOT may not perfect because of such elements that are known only by the organization personnel. I agree to the study and research about the business and then analyze the best for investment, but this will not be SWOT it will be critical analysis which can be really helpful.

[CoinCidental]

Gold will Not make you any significant profit, however it will protect you against the devaluation of paper cash and therfore allow you to retain value you already had....

To gain a larger stack in a reasonable time frame, use crypto or the stock market or both

Move the wealth into gold for safekeeping after you make it
Gold alone is Historically a bad investment but a good store of value although people who bought it for $1800 in 2011 are still deeply in the red and might still take several years to break even never mind profit...

[centralbanksequalsbombs]

Gold will Not make you any significant profit, however it will protect you against the devaluation of paper cash and therfore allow you to retain value you already had....

To gain a larger stack in a reasonable time frame, use crypto or the stock market or both

Move the wealth into gold for safekeeping after you make it
Gold alone is Historically a bad investment but a good store of value although people who bought it for $1800 in 2011 are still deeply in the red and might still take several years to break even never mind profit...

Isn't the optimal solution be finding the historical efficient frontier using these different asset classes and then find an ideal allocation % to apply to each of the types of assets?

There's a free tool available to do just this. VERY POWERFUL;
google backtest for the portfolio visualizer website

And explore, use the tools around there.

[machinek20]

Nothing can beat bitcoin performance this year, as the chart mention the risng was faster than anything in ths world, so with no hesitation I will say bitcoin, the main point of investment is making profit, so we need to choose something that can make the best profit

[ASHLIUSZ]

Nothing can beat bitcoin performance this year, as the chart mention the risng was faster than anything in ths world, so with no hesitation I will say bitcoin, the main point of investment is making profit, so we need to choose something that can make the best profit

Agreed, nothing could beat the performance of bitcoin. A comparison will help one understand which is the best, because I too believe in around the same time period of around 9 years property too could have not given such a growth so I too prefer it to be the best of all.

[PanGiMoon]

Nothing can beat bitcoin performance this year, as the chart mention the risng was faster than anything in ths world, so with no hesitation I will say bitcoin, the main point of investment is making profit, so we need to choose something that can make the best profit

Agreed, nothing could beat the performance of bitcoin. A comparison will help one understand which is the best, because I too believe in around the same time period of around 9 years property too could have not given such a growth so I too prefer it to be the best of all.

But it seems to me that I still need to buy Both then and the other And the third. If all your finances are divided into 3 parts, you meet yourself from some problems at least 1 investment.

[centralbanksequalsbombs]

UPDATED CHART:



BTC vs S&P US Stocks vs Gold vs US Bonds


,,,,which to buy & hold?

[centralbanksequalsbombs]

Another update (though this chart shows old stale bitcoin price of 2800 (vs 3200 trading level today)):



How should we invest?

[BeetcoinScummer]

Breakdown of performance for that period (in USD terms):
Bitcoin/USD: +80%
S&P 500 Stocks: +30%
Real Estate (REITs): +26%
Gold: +3%
Bonds: +1%

Everything above except bonds. Why? Bonds typically have a high risk/reward ratio almost equivalent to equities, yet the potential rewards are really low. In the event of a company going bankrupt,  bondholders do indeed have higher priority than stockholders in getting something back, but this does not really matter if shit hits the fan and all the company's assets are wiped out. Further more, bonds and stocks have a really high correlation historically.

[Ayiranorea]

Bitcoin is the right pick. Whether the price of bitcoin increases or decreases never think about it, just invest into it. In my thinking only the user who have trusted and invested into it has profited big. The earlier we invest into bitcoin the biggest will be the profit we make with respect to time.

[centralbanksequalsbombs]

Bitcoin is the right pick. Whether the price of bitcoin increases or decreases never think about it, just invest into it. In my thinking only the user who have trusted and invested into it has profited big. The earlier we invest into bitcoin the biggest will be the profit we make with respect to time.

It's more than just invest:
1) Must educate
2) and be engaged against attacks


For example, here is a PSA I would give for a small example of an attack on Bitcoin;
PSA: Beware of S2xGarzik-Coin hardfork (and similar failures ie Garzikcoin aka BIP 100, Bitcoin Unlimited)
These attacks of using "community" urgency have been relentless since 2015:



From Chainalysis now Skry now Bloq now Segwit2x (Jeff Garzik):

    Founded in 2014, Chainalysis is the leading provider of Anti-Money Laundering software for Bitcoin. With offices in New York and Copenhagen, we work with global financial institutions, like Barclays and Bitcoin exchanges to enable every stakeholder to assess risk in this new economy.
credit: baronofbitcoin

Opens door for AML, easy identification, etc. Things so traditional authorities identify you, classify you, and shut you down, FREEZE YOUR ASSETS, lock you up.  Just because they don't like you for not supporting the traditional Bank Swift network or a Bankchain.

Bitcoin's consensus system and natural economic incentives PROTECT the real bitcoin.

Nothing bad happened after the BCC split, in fact the price increased and we even got free coins.

So I guess there will be nothing bad in a SegWit2x fork, and we will have more free coins to hold.

There certainly will be if the present percentage of miners pushes it through. Corecoin would have to change PoW to stand a chance of being usable. It would slow to a crawl if it lost that much mining power.

Bitfury is already having second thoughts about the New York Agreement. You will see the first mining camps start defecting from the agreement after segwit locks in.

In any case, it's irrelevant. Whales will dump on GarzikCoin, killing the price and thus forcing them to go back to mining the legacy chain. GarzikCoin doesn't stand a chance and will become another dumb altcoin, and everyone involved will be forever hated because they will be responsible of crashing the price in the middle of an all time high for no reason other than rushing a hardfork for an unnecessary blocksize increase while putting Jeff Garzik, someone that works in a blockchain spying tool, in charge.

Repeated History: Reading references (emphasis mine);
http://www.contravex.com/2015/08/29/the-economics-of-sinking-garzikcoin-aka-bip-100/
Adam T. says:   
August 30, 2015 at 8:49 AM   

“pre-emptive strike” — best characterization I’ve seen yet to describe the odd feeling of urgency from certain parties.
Reply   

    Pete Dushenski says:   
    August 30, 2015 at 10:11 AM   

    Odd indeed. Almost like these overgrown children seriously imagine that Bitcoin didn’t reach escape velocity 2.5 years ago and that they can rewrite history if only they obtain enough “consensus” on social media. Must suck to think that’s how the world works.

[centralbanksequalsbombs]

Bitcoin is an obvious choice as the global fiat system has been broken. Governments, Central Banks, Spy agencies along with media have for years tried their hardest to shutdown bitcoin by regulating it, by either legalizing it or by making it illegal, by banning exchanges, by putting out negative statements, and then trying to (ironically) attach bad uses of it (where in truth the fiat system funds all the criminal-activity drugs and bombs in the world). All these entities will continue doing this for years to come and everyone will see that the impact on Bitcoin was minimal at best. No better escape from broken fiat than Bitcoin.

[centralbanksequalsbombs]

Breakdown of performance for that period (in USD terms):
Bitcoin/USD: +80%
S&P 500 Stocks: +30%
Real Estate (REITs): +26%
Gold: +3%
Bonds: +1%

Everything above except bonds. Why? Bonds typically have a high risk/reward ratio almost equivalent to equities, yet the potential rewards are really low. In the event of a company going bankrupt,  bondholders do indeed have higher priority than stockholders in getting something back, but this does not really matter if shit hits the fan and all the company's assets are wiped out. Further more, bonds and stocks have a really high correlation historically.

That is a very interesting comment!
Disregard the "safety" and diversifying correlation aspects of Bonds?

I mean one could say bonds would still be crucial for efficient portfolio construction...
Maybe something like:
14% allocated to Bitcoin
1% allocated to altcoin
38% allocated to Bonds  (including ST Commercial Paper)
30% Stocks
10% Real Estate
7% Gold/Precious Metals
 

[Torque]

Another thing to think about, as I have recently. If the impact of all major currencies that have been QE'd over the last decade is that inflation is starting to bleed into and be felt in the world economies.

That would mean that virtually ALL other equities/assets, even if they are experiencing bubble valuations in the short term, will continue to melt up over the long term unless some sort of global crisis brings their fiat value down like a house of cards. And that may never happen, if the Powers That Be in control of the world financial markets continue to have controlled demolitions and keep the markets buoyed and the fiat printing machines going. We may see a few corrections here and there along the way, but the insiders who know rising inflation is the real enemy will keep BTFD and things will continue onward and upward in the markets.

In other words, perhaps within the next decade it's not equities, commodities, and assets (including Bitcoin) so much rising in value as it is the local currencies falling in purchasing power?

Take a look at Venezuela's 5 year stock market chart:
https://tradingeconomics.com/venezuela/stock-market

[xuan87]

Bitcoin is an obvious choice as the global fiat system has been broken. Governments, Central Banks, Spy agencies along with media have for years tried their hardest to shutdown bitcoin by regulating it, by either legalizing it or by making it illegal, by banning exchanges, by putting out negative statements, and then trying to (ironically) attach bad uses of it (where in truth the fiat system funds all the criminal-activity drugs and bombs in the world). All these entities will continue doing this for years to come and everyone will see that the impact on Bitcoin was minimal at best. No better escape from broken fiat than Bitcoin.

If you think it thoroughly, maybe there are something that you need to be consider, for a short term it really gives a lot of profit, a very big profit that no other investment ever reach in a short time, but crypto currency is very volatile investment, and there are still many rejection, gold is the best investment for a very long time, while real estate need to have maintenance and big capital to start, you can't buy partly or fraction of the house, bonds or stocks is too much risk especially when you are not really active, I still stick with Bitcoin and alt coins for short term and hold for a very long term investment

[thesosorr]

In the meantime, i still need bitcoin as an income farm. Because, i am not including people who prosper economically. However, if home or stock intends to be a diversified investment destination. That's a good plan.

[Question123]

If you have a lot of bitcoin in your wallet for sure you will earn a lot of profit in the future. So if you have extra money in your pocket its better if you buy bitcoin now. Dont choose other, bitcoin gives you opportunity to earn big and fast. Other bsusiness or investment needd more time or few years before you earn . Bitcoin as of now is indemand investment of all people who are willing to earn money.