In the traditional investment systems there are areas like stock exchange, real estates, commodity market, forex market. Then there are hedge funds, mutual funds, equity, debentures. Next in line are precious metals like Gold, silver, diamond. Years after year and decades after decades when mainstream economics was convincing people that how one of above is better than other as it is giving returns in the range of 8% to 9% at max 10-13% a new revolution named bitcoin is rising and spreading across the world. Bitcoin has defied all conventional knowledge about return on interest. Surviving each negative publicity and doubts, incidents like mt. gox and still growing better than ever.
What do you think why bitcoin is the best investment than stocks, real-estate, gold or any other conventional investment?
This is a difficult one, as I am not invested in bitcoin and heavily invested in real estate. Real Estate has some significant advantages. One, it is tangible. You can touch it, paint it, plant trees in it, this makes one less nervous on valuation volitility. Two, people will always need a place to live, Amazon, Google, Apple will not make an alternative to a roof over your head and a place to keep your stuff. Three, you can borrow most of the acquisition. Four, you can depreciate it and chew up some of the earnings. Four, you can cash out refi without cap gains or dilluting your ownership percentage. Five, you can make improvements and raise the rent to force cap appreciation. Six, you can live in it in a pinch.
Downside, and this is why it is a difficult case, you are tied to a local that can have economic trouble, natural disasters, or massive regulatory shifts that can blow you up. Bitcoin seems protected from that.