Government bonds VS Crypto investments...?!

[Jawadu]

Hi guys  

I have brought this debate here because I see there is still a lot of controversy between government bond investors and cryptocurrencies investors, so today I want us to discuss this matter together.

Too many people have been defaming many governments by saying that they do not have good procedures for cooperating with investors, I mean the freedom of your money if it is in the hands of the government. For example, those who keep money in banks may not be able to manage their money 100% compared to having cryptocurrencies in wallets or exchanges [it may be true], but what if we compare investments from both sides???

I am a government bond investor but also an investor in cryptocurrencies so I am aware of the pros and cons of both parties;

• Crypto investments.

I earn 12% per year investing stable coins on the Crypto exchange. But I will have to hold at least 4000 CRO tokens for 6 months to get that 12% per year! Which in reality is still a risk because CRO is not stable so you can incur losses by holding 4000 CRO for those 6 months. But I can invest stable coins in BlockFi and earn 7.5% per year, but it is a very small profit compared to the one I earn on a government bond! The benefits I have seen by investing in Crypto and BlockFi are that Crypto gives me my profit every week and BlockFi gives me every month, but the government gives me only after a year! But the challenge I have seen is that you will be deducted a lot of amount from your profit until it reaches your bank account so that you can use it in your country, also blockchain systems can be hacked and you may lose your money [this will never happen in government bond], but they also offer a small profit compared to the government bonds [perhaps my country's government]!

• Government bonds.

Let me be honest, the profit I get from government bonds is 15% of my investment per year and this profit has no deductions I get it directly into my bank account, but also no losses because government money is stable. The only challenge I have ever known in investing in government bonds [in my country] is that they do not accept everyone's money! They have their own criteria such as needing your birth certificate, citizenship ID, business license, and VAT number. But there is no inconvenience at all in taking your profit or stoping your investment and take your capital back! Government bonds will not please you if you do not have another source of income because they only pay once a year! For me I think it's good because it helps me raise money for my future goals.

Personally, I prefer to invest more in government bonds because I will avoid high taxes from exchanges in converting and withdrawing cryptocurrencies into my country's currency, but I will also increase the protection of my money because it will be protected by the government. So I can say that the money for my goals I have invested in the government, but the money to run my daily life is in the blockchain.

What is your opinion on this matter?

Please note: Not all governments will have the same laws and profits for their citizens who support their activities through investing in bonds! So do your own research on your government to know their rules first before investing.

[5thFear]

Well, the govt can't compete with cryptos. You conclusion as of now might not be that lucrative but soon you'll find the cryptos taking over the govt in this field. Btw i think that there are projects out there which can give you more then 12% profit but a little research needs to be done.

[Jawadu]

Well, the govt can't compete with cryptos. You conclusion as of now might not be that lucrative but soon you'll find the cryptos taking over the govt in this field. Btw i think that there are projects out there which can give you more then 12% profit but a little research needs to be done.

You're right friend. But we have to admit that crypto has surpassed the government in some things but not in all things! Crypto exchange can give you up to 14% of your capital p.a, but you will need to hold at least 40,000 CRO tokens for 6 months which is over $5200 at the moment! It is very risky because CRO is a volatile token so you could incur losses in your investment.

[JeffBrad12]

Yeah just go to the government bond if you're feeling good with the very small stable return. Investing in the crypto is a high risk investment and it has also very high profitability once you are getting a legit project.

People investing in crypto caused by they believe in the fundamental of the company that has been running the project.

It must be compared with the stock as both were almost the same but in crypto you can get various ability from what you have been holding like farm, staking reward, NFT, and many more.

You can also get the capital gain as well.

[Jawadu]

Yeah just go to the government bond if you're feeling good with the very small stable return.

I get 12% from Crypto exchange, and I get 7.5% from BlockFi if I invest in stablecoins, but I get 15% from government bonds without any fees! So I didn't understand what you mean by saying "very small stable return" because government bonds are a good return to stable currency than crypto.

[Jawadu]

Farming stablecoins is stupid unless you are waiting to buy more crypto during a dip. Yes, you might get 15% apy on your USDC but if you were holding Celo or NEAR or XRP for example, your crypto could 10x. If you are just farming stablecoins you are going to stay poor. Stop being so poor and use your brain.

Farming USDC or any other cryptocurrency is stupid only if you are doing it in the wrong way! There are some people who have invested more than $100,000 USDC and they get paid 15% per year, how dare you call that stupid while they do not have to worry about losses from volatile coins??? Just because btc, eth, ltc, link, celo, near, xrp, trx, doge, and many more can grow 10x doesn't mean you should not invest in stable coins!

Putting all your money in one bucket is the stupidest thing, but investing in stable coins is the most helpful thing that saves our money as traders!!! I wonder you don't know that and you call it stupid, lol 

[Qirtov]

Most millennials prefer cryptocurrency investment over government bonds, which certainly shows that cryptocurrency investment is an attractive investment opportunity to do. Over the past few years, the cryptocurrency market has developed well. Today, cryptocurrency trading has been accompanied by regulatory oversight and control by financial institutions and government bodies. This strict regulation supports the security side of investing in cryptocurrencies.

[ajochems]

Yeah just go to the government bond if you're feeling good with the very small stable return.

I get 12% from Crypto exchange, and I get 7.5% from BlockFi if I invest in stablecoins, but I get 15% from government bonds without any fees! So I didn't understand what you mean by saying "very small stable return" because government bonds are a good return to stable currency than crypto.

Some government agreed the investment of cryptocurrency. Some was in a standard against the legalization. Government bonds are also a good tool to inverse your money.But when the market rock and pumped huge. You will get double or triple of the profit from the government bonds.

[noorman0]

@OP, Return on investment is not a matter of nominal. If you are quite satisfied with the amount of return that other people think is small, it doesn't matter as long as you can enjoy everything.
Just need to know, investing in crypto as you describe is another meaning of crypto staking. So yeah, to get that APY, they have to entrust their crypto to a centralized service (which most of them don't even know about). I have not found a better staking legal guarantee than the one issued by the government.

Farming stablecoins is stupid unless you are waiting to buy more crypto during a dip. Yes, you might get 15% apy on your USDC but if you were holding Celo or NEAR or XRP for example, your crypto could 10x. If you are just farming stablecoins you are going to stay poor. Stop being so poor and use your brain.

xrp? You can call people stupid (though I don't like to do that), but don't fool people with other stupid suggestions.

[Jawadu]

Yeah just go to the government bond if you're feeling good with the very small stable return.

I get 12% from Crypto exchange, and I get 7.5% from BlockFi if I invest in stablecoins, but I get 15% from government bonds without any fees! So I didn't understand what you mean by saying "very small stable return" because government bonds are a good return to stable currency than crypto.

Some government agreed the investment of cryptocurrency. Some was in a standard against the legalization. Government bonds are also a good tool to inverse your money.But when the market rock and pumped huge. You will get double or triple of the profit from the government bonds.

I'm glad my country soon will legalize crypto and maybe it will be easy for me to exchange crypto to my country's currency because it is one of the biggest reasons which makes me to invest more in government bonds. Since I have started investing in government bonds until today I have never regretted my decision because the profit is good, no any fees, and I invest in my country's currency directly.

@OP, Return on investment is not a matter of nominal. If you are quite satisfied with the amount of return that other people think is small, it doesn't matter as long as you can enjoy everything.
Just need to know, investing in crypto as you describe is another meaning of crypto staking. So yeah, to get that APY, they have to entrust their crypto to a centralized service (which most of them don't even know about). I have not found a better staking legal guarantee than the one issued by the government.

Absolutely buddy! I am always happy with my investments because my money is 100% safe in the government bonds, also there is never a loss in the government's bonds. Some people may see 15% as a very small profit but it is stable so I do not have to worry about bearish, and also they do not know how much I have invested so they'll never know 15% is how much to me!

Yes, I meant staking. I think that's why some people are confused.

What is your opinion on this matter?

Please note: Not all governments will have the same laws and profits for their citizens who support their activities through investing in bonds! So do your own research on your government to know their rules first before investing.

In my opinion crypto is better than governments bonds. If you think of long-term prospective crypto is bullish. Thair could be another major correction to the market but sentiments are bullish for the long term. And those who invest in crypto know about the risk very well but still, they invest in crypto because they know rewards will be huge. Investors don't invest in crypto for 12% they do for more. So as long as the future of crypto is still positive it's worth risking some money here.

I don't think we understand each other brother, forgive me for not straightening out the details. I meant "staking" in stable coins compared to investing in government bonds using your country's currency which is also stable, which is better?

Apart from staking, I am a trader and I know that if you trade the right coins/tokens and at the right time when the market is good, you may earn a very good profit. But I was wrong to explain, I meant staking and not a direct crypto investment which includes trading, lending, mining, and so on.

[DarkDays]

I'm not a fun of government bonds, and a comparison of them to crypto investment is not even worth making because the latter is on a next level.

Some government bonds like yours with 15% APY is a great return but most do not give out such competitive interest rates, and I have known cases where the government was in such a great debt that they even defaulted on the bonds interest rate. This is to say that there's no such thing as investment without risk.

With the crypto space on the other hand, you know from the start that it is risky and that you and you alone can mitigate the risk -no intermediary involved. Personal choice is greater than with government bonds and there's no such thing as locked funds (unless you decide to go for those investment types).

The returns are in line with the risk level, so it gives you full control wherever and whenever!

Put simply the returns in crypto are astronomical compared to what you can get from government bonds, or traditional stock and shares even.

[Shallow]

To even begin with, how many people nowadays who are into crypto saves in their country's fiat? I don't think a lot of people do, to even add to it, most people only keep little funds in their bank accounts just to meet up with daily life issues while keeping a huge chunk of their assets in stablecoins and different cryptocurrencies. The simple reason for these is, people are now beginning to understand the freedom and unlimited benefits crypto offers against fiat, therefore for people with such mindset they have nothing to do with government bonds.
Another challenge is, the government bonds are no longer as attractive as before, while on the other hand, a trader or crypto investor knows that, there is every tendency he can carry out his due diligence, invest in a good coin and within months make tremendous profits. Therefore it can be seen that, in addition to freedom crypto offers, it also offers a whole of wealth creation, which government bonds do not offer.