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Author Topic: How much do you have to profit in Bitcoin to beat other investments?  (Read 141 times)
magneto
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March 29, 2018, 06:52:18 AM
 #21

This is a very open discussion, but a topic that needs some attention.

As an investor I always have to compare my actual profit on a year to year basis, to consider if I should continue investing in that commodity or currency or stock etc.

Let's look at Gold for instance :  https://goldprice.org/gold-price-history.html < In 16 years my profit would have been +/- 343.78% >

Let's look at Silver for instance : https://silverprice.org/ < In 16 years my profit would have been +/- 256.15% >

If I deposited the money into a fixed savings account at say %10 p/a <very high for some countries> combined interest = 160% over 16years. <without compound interest> Feel free to make the compound interest comparisons.

https://www.gobankingrates.com/banking/see-interest-rates-last-100-years/

These are very crude statistics and cherry picking comes into play, but it does give you an idea what the Bitcoin price needs to be to beat some of these investment strategies.

I think my more than 800% profit with Bitcoin last year, overshadowed the profits from other investments I could have made for the last 16 years.

We need 1 or 2 good years like 2017, to render all other investments null and void for several years. ^smile^

What other investments comes close to the profits that we saw in 2017? { 1 year }  Huh Roll Eyes



THis is why I believe in always making investments into new assets that others haven't got in yet, when others are way too conservative in their investment strategy. I can say for sure that depositing into a bank for the long term as an investment is pretty much shooting yourself in the foot as an investor, since the interest rates will rarely outpace the real rate of inflation and growth of assets.

I don't think that anything have came close to challenging BTC's growth in the past year, apart from other cryptos which don't really count.

There were periods of time in history when precious metals and housing as investments, as well as stocks delivered similar returns to BTC in 2017, but definitely not in 2017. In 2016-2017, BTC has outperformed every other asset class that I know of. And the growth was sustained for 2 years straight too.

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m0gliE
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March 30, 2018, 02:01:13 PM
 #22

Hi,

I don't see anything that could support the comparison...

Yet, there is one point missing in your analysis. Your profit in bitcoin over the last year is indeed really high and really interesting... But I think it is also the most risky bet. So I guess that would should be added to your analysis, is the potential loss...

Because, indeed, the potential of profit may be over 800% but the potential of loss should be quite high too... Whereas with the gold and its standard.. indeed the rise is really slow and steady, but it is also quite sure. So yes, interesting analysis, but you should complete it (if you have the figures)! Wink

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April 01, 2018, 07:28:27 AM
 #23

Hi,

I don't see anything that could support the comparison...

Yet, there is one point missing in your analysis. Your profit in bitcoin over the last year is indeed really high and really interesting... But I think it is also the most risky bet. So I guess that would should be added to your analysis, is the potential loss...

Because, indeed, the potential of profit may be over 800% but the potential of loss should be quite high too... Whereas with the gold and its standard.. indeed the rise is really slow and steady, but it is also quite sure. So yes, interesting analysis, but you should complete it (if you have the figures)! Wink

You're right about having to take risk into the equation.

Gold is an interesting one, if you compare the charts then gold behaves in a very similar way to Bitcoin but much more slowly.

https://www.tradingview.com/x/kIJtkGWB/

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April 01, 2018, 08:00:42 AM
 #24

Let us date back to the pre-Bitcoin age where most of the investment options would be stocks and gold/silver. Profits would be minimal even on the long term as price fluctuations would mainly be a result of variance in supply and demand and other smaller influences. Today, we're looking at an age of digital currencies being on the top of the food chain in the investment block, providing much bigger growth potential compared to orthodox investments.


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haryatiposton01
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April 01, 2018, 08:09:56 AM
 #25

because the circumstances of the future are also uncertain and unpredictable accurately. The return on investment may not be as expected, even contrary to and generate a loss, because one can not completely evade the risks posed by uncertainty. Deliberately or not
lixer
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April 03, 2018, 06:21:18 AM
 #26

In some 3rd world countries, inflation is very high and you might get much higher interest rates than 1st world countries on your investments. I just used 10% as the highest percentage to highlight the difference between getting 800% in one year with Bitcoin and getting 160% in say 16 years from the interest that you could have received in a Bank. <huge difference, right?>

The difference is still highly in favour of a Bitcoin investment at the highest possible interest that you might get from the Bank. It would be interesting to see what would happen if you brought compound interest into the comparison, because the difference in profit would be less, if you kept the money in a fixed deposit over a longer period.

One other factor needs to be considered here and that is exchange rates. If you can get 10% on a bank deposit in a country the chances are that its currency will depreciate substantially against the USD over a 16 year period. So when making a comparison to the USD return on Bitcoin you need to calculate that as well.

There is no such principal which describes such kind of thing. It all depends on the amount of money which you are investing into bitcoin. Higher the investment amount will be, higher are the chances that you are going to make out greater amount of profit out of that investment.

This is the only thing which can help you in having a better living as well as giving you a chance of making far more money than you can make by investing in any other investment.

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TheQuin
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April 03, 2018, 11:41:54 AM
 #27

In some 3rd world countries, inflation is very high and you might get much higher interest rates than 1st world countries on your investments. I just used 10% as the highest percentage to highlight the difference between getting 800% in one year with Bitcoin and getting 160% in say 16 years from the interest that you could have received in a Bank. <huge difference, right?>

The difference is still highly in favour of a Bitcoin investment at the highest possible interest that you might get from the Bank. It would be interesting to see what would happen if you brought compound interest into the comparison, because the difference in profit would be less, if you kept the money in a fixed deposit over a longer period.

One other factor needs to be considered here and that is exchange rates. If you can get 10% on a bank deposit in a country the chances are that its currency will depreciate substantially against the USD over a 16 year period. So when making a comparison to the USD return on Bitcoin you need to calculate that as well.

There is no such principal which describes such kind of thing. It all depends on the amount of money which you are investing into bitcoin. Higher the investment amount will be, higher are the chances that you are going to make out greater amount of profit out of that investment.

This is the only thing which can help you in having a better living as well as giving you a chance of making far more money than you can make by investing in any other investment.

I think you need to lookup risk-reward ratios. If you seriously think the amount invested influences the chances, then you are in need of some basic education on the subject.

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April 03, 2018, 03:28:09 PM
 #28

I think making over 100 percent ROI is just enough for that and bitcoin has managed to give people who held for a long time over 500 percent on ROI which is bigger than any investments  are giving.
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April 05, 2018, 05:09:36 AM
 #29

In some 3rd world countries, inflation is very high and you might get much higher interest rates than 1st world countries on your investments. I just used 10% as the highest percentage to highlight the difference between getting 800% in one year with Bitcoin and getting 160% in say 16 years from the interest that you could have received in a Bank. <huge difference, right?>

The difference is still highly in favour of a Bitcoin investment at the highest possible interest that you might get from the Bank. It would be interesting to see what would happen if you brought compound interest into the comparison, because the difference in profit would be less, if you kept the money in a fixed deposit over a longer period.

One other factor needs to be considered here and that is exchange rates. If you can get 10% on a bank deposit in a country the chances are that its currency will depreciate substantially against the USD over a 16 year period. So when making a comparison to the USD return on Bitcoin you need to calculate that as well.

There is no such principal which describes such kind of thing. It all depends on the amount of money which you are investing into bitcoin. Higher the investment amount will be, higher are the chances that you are going to make out greater amount of profit out of that investment.

This is the only thing which can help you in having a better living as well as giving you a chance of making far more money than you can make by investing in any other investment.
The scale of your profit or you can say margin is determined by the amount that you have invested into bitcoin because the larger size of investment makes you eligible for larger profits. In short, you are measuring your profit through your invested capital and this is the only way to predict your returns with bitcoin. To make extraordinary profit with little investment, extraordinary patience is needed to hold it.

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fiulpro
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April 05, 2018, 05:28:31 AM
 #30

You dont necessarily need to beat other investments to make goals in one. I think a more widespread investment strategy would work better, than just investing at one certain place and expecting good returns forever.

The returns obviously vary greatly from differemt platform be it stock or land or even bitcoin. In past, bitcoin produced allot of returns but for now it is quite stagnant for a long time. That doesnt mean we need tp dump btc and look for new investments. Investments can be pretty long term, and sticking would  show good returns.
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