Why Bitcoin Is Much Better Than Real Estate
Рет қаралды 23,628
Жыл бұрынJoin my private Bitcoin forum and get the course:
www.bitcoinuniversity.com/join
In this video, I discuss why I believe that Bitcoin is a much better investment than real estate.
Unlike real estate, Bitcoin is:
-- Portable
-- Seizure-resistant
-- Without ongoing property taxes, insurance, or maintenance costs
In short, Bitcoin does not leak "economic energy," while real estate certainly does.
In addition, the Bitcoin network enforces your property rights when you own Bitcoin.
When you own real estate, you need to trust your government, police, judicial system, and military to respect and protect your property rights.
When a regime turns sour, Bitcoin provides a way for people to exit and opt out by moving to a more friendly jurisdiction.
Owning Bitcoin is like having a bank account in cyberspace that no one can censor, confiscate, or devalue.
Not investment advice! Consult a financial advisor.
USD purchasing power over time:
www.visualcapitalist.com/wp-c...
Movie about the nightmare of being a landlord:
en.wikipedia.org/wiki/Pacific...)
Ukrainians leaving their homes behind:
foreignpolicy.com/2022/04/15/...
US debt load is closer to $200 trillion:
/ 1655269126250835968
Watch the Fed's balance sheet grow:
fred.stlouisfed.org/series/WALCL
Beautiful image of Bitcoin as a golden cube:
pbs.twimg.com/media/FxDeSF0Xw...
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#Bitcoin
#realestate
Disclaimer
Neither Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video, on this KZfaq channel, or at www.Trader.University or www.BitcoinUniversity.com (henceforth, “the Sites”) should be construed as such by you. This video, channel, and the Sites should be used as educational tools only and are not replacements for professional investment advice. Trading or investing in new and volatile assets like Bitcoin can be risky.
@Bitcoin_University Жыл бұрын
WARNING: There are a number of scammers who are using my image and channel name to try to connect with my viewers on WhatsApp and other platforms to scam them. Just so you know, I will never refer you to "my personal trader" or try to connect with you personally to sell you something. I am trying to ban these scammers as quickly as they pop up. You can always recognize a scammer by clicking on the image and seeing how many videos he has. All of these guys have zero videos, while I have hundreds. I also now have a checkmark next to my name, so that you can distinguish the real Bitcoin University from the imposters. Follow me on Twitter @mattkratter
@LClarke Жыл бұрын
(and don't forget HOA fees!) Great job, as usual, Matthew....and congrats on 200K subs!!
@Bitcoin_University Жыл бұрын
@@LClarke Yes, good point-- I should have mentioned those as well
@gusgalvanini Жыл бұрын
Michael Saylor talks about this; Bitcoin is little to no maintenance, real estate is the worse, everything breaks all the time, taxes, regulations, limitation, tenants who won't pay, screw that, I choose Bitcoin!!
@reginaldedgardo3530 9 ай бұрын
The market is very unstable and you can not tell If it's going bearish or bullish. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses.When these reports are bullish take Some off to the side lines, when news gets bearish start buying. "Keep it simple simple" that bear/ correction was the best thing that happened me. But all thanks to Eric Birger for his amazing skills for helping me to earn 15.6 Btc through trading chart. I believe we are in the spring phase..
@reginaldedgardo3530 9 ай бұрын
@EricBirger VlA t e I e g r am..,.,.
@1simonpreece 9 ай бұрын
Cryptocurrency's decentralized nature provides individuals with financial autonomy. BTC trading empowers people to take control of their investments and participate in the digital revolution.
@westerntree1 9 ай бұрын
Trading with an expert like Eric Birger is the strategy for newbies and busy investors who have little or no time to monitor trade...I will advise you to stop trading on your own it's very risky. Seek advice from a professional trader
@dastan4637 Жыл бұрын
Great explanation. Another important factor why real estate is worse than bitcoin as an investment tool. When investors buy up real estate, it becomes more and more inaccessible to ordinary people as a basic need - a shelter, both physically (few people can afford real estate in the city center: ex. Manhattan) and financially (bubbles, mortgages-growing debt burden). Investing in bitcoin makes all the owners of the bitcoin network richer and the growth in the price of bitcoin does not affect the cost of basic human needs (food, water, energy, shelter ..).
@Bitcoin_University Жыл бұрын
Great comment. When the money is bad, people use houses as a store of value, which hurts the middle and working classes. Bitcoin fixes this
@IaintTheHerb Жыл бұрын
The 1031 exhange is one of the big reasons house prices stay high - everyone rolls into something else to postpone tax liabilities, and newer, younger people are shut out.
@PatrickN. Жыл бұрын
Spot on!
@JohnDoe-fb4fb Жыл бұрын
And the hard cap of 21 million bitcoin makes it more accessible how?
@JohnDoe-fb4fb 11 ай бұрын
@@twowheelrider6656 I can forget the passphrase for my cold wallet.
@AndrewKangas Жыл бұрын
Nice video. The argument would be stronger if you accounted for the ease of leveraging real estate. Hardly any real estate investor uses $1m cash to buy a $1m house. They use much less cash and then the bank loans the rest. Then they put in renters to service the debt. Banks don't loan for BTC at the rates they do for real estate. This should be included if you're going to compare the two assets.
@NarwhalChaser Жыл бұрын
I completely agree. The total return of real estate (loan payoff, tax benefits, cash flow, leverage, etc.) can well be worth the headache if you have a management company and treat it as a business. Many investors also appreciate the yield, which bitcoin can’t provide. I see many of Matt’s points here, but I think it’s the second best option to bitcoin for the nuanced investor. Stack RE, if you like it, along with stacking sats IMO
@bitcoinisfreedommoney.fckt2663 Жыл бұрын
@@NarwhalChaserBitcoin doesn’t need a yield because it has exponentially increasing purchasing power. A yield is only required for Fiat money to desperately try to make up for the debasement of government counterfeiting. Your brain has been destroyed by Fiat money thinking.
@AlbertAzimov 7 ай бұрын
Let me adjust the numbers for my case with $500k Florida house. Property tax is 2%, insurance is 1%, maintenance is 2%, utilities is 1%.
@BlueOwl. Жыл бұрын
Perfect time thank you. Currently considering getting rental property
@Harrybowles1969 Жыл бұрын
I sold my house and bought bitcoin. This makes me feel a little better
@johnnymidas5879 Жыл бұрын
GREAT TO SEE YOU MATHEW, GOOD MORNING 🌄
@Bitcoin_University Жыл бұрын
Good morning, Johnny
@directx872 Жыл бұрын
I wish more people would listen to you and stop hoarding houses so prices would come down a bit
@Bitcoin_University Жыл бұрын
Yes, Bitcoin fixes this too
@RyanVoelkel Жыл бұрын
Yep there’s no doubt about it! Bitcoin > Real Estate. I’ve got a portfolio of real estate that I’ll be selling in the next year or two when interest rates come back down and real estate market is got again. Proceeds going into Bitcoin
@Bitcoin_University Жыл бұрын
As more and more people do this, the monetary premium will leave housing and enter Bitcoin.
@normanatm7 11 ай бұрын
Hi Matthew, In your videos, you suggested selling our rental property. Currently, I have a rental in the Boston area that gives me a positive cash flow of $1500 per month. Why not keep the rental and use the cash flow towards buying more BTC?
@mr_digdeeper Жыл бұрын
Awesome video man! Keep up the great content!
@88gcllc 3 ай бұрын
Love Pacific Heights!!! is the reason I own REITS vs actual rental property
@Meek_Marvin_ Жыл бұрын
Congratulations Matt Nice to see you again
@RomeyB 11 ай бұрын
Thank you for posting this.
@corridor444 Жыл бұрын
Thanks again for your valuable insights
@crisper1614 Жыл бұрын
A bold statement Matt! And an even bolder argument.
@stevedre6481 Жыл бұрын
All true, but the "Leaking Economic Energy" is also off set by price appreciation, which can far over compensate for the "leaking" If the property appreciates 10% in 1 year, you have an additional $100K in value, doubling the $50K leak, tax free. But what you grossly omit is the leveraging power of real estate. At 80% LTV you only need $200K to acquire that $1 MM house. If the property appreciates 20% in 4 years, your cash on cash return is 100%. Also if appreciation rates are above your mortgage rate (usually true) then you are making money on borrowed bank funds. Not doable with BTC at the moment. Are their risks and unforeseen events in RE investing. Of course. But ask those who acquired BTC at $60,000 about BTC risk. Both RE and BTC have merits and risk. However, I prefer an honest assessment when the comparison is made.
@bitcoinpoemspro1406 Жыл бұрын
Thx Matthew
@Kittensarevicious 11 ай бұрын
Spot on, thank you.
@swedo12 9 ай бұрын
When I speak to my property investing friends they dont actually understand the basic premise of why they are investing in property as opposed to other assets. They dont think about property as hard to inflate vs fiat, stocks, Gold. They just do that because thats how they see rich people got rich previously so they do that. So when I try to explain scarcity to them they dont quite see the reason why that is useful.
@ranchocucamongaglassvideos1953 Жыл бұрын
Great advice! I, too, got out of real estate and am glad I did.
@joeybourke07 Жыл бұрын
Great stuff thank you 👍🏻
@BatmanBoss Жыл бұрын
Thanks buddy
@lilyglass9765 5 ай бұрын
Thanks for the video. You always have great information for people to think about.
@RyanHoguePassiveIncome Жыл бұрын
Thx Matt 😊
@Steve-nb9kg Жыл бұрын
If anyone is still considering buying real estate for investment, definitely consider hiring a property management company. You'll be offloading major headaches, well worth the 8% commission.
@artrahimoff2060 11 ай бұрын
8% commission on gross rent, might just eat up 50-100% of your cashflow.
@TunnelVisionAthletic Жыл бұрын
Damn this was soo good Matt!
@CH-so8tn 10 ай бұрын
I agree!
@eminemboyzzz 11 ай бұрын
Agree with what you said Matt but one advantage of real estate over Bitcoin is the positive cash flow in form of rent or dividend yield from holding REIT. This is compensated by the fact that BTC has better capital appreciation and no management and counter party risks so I'm still a Bitcoiner
@JohnLyonsRealEstate Жыл бұрын
Excellent breakdown
@Bitcoin_University Жыл бұрын
Thanks, John
@dinoamador8682 Жыл бұрын
Not quite. Matt did not mention the all important investment horizon or holding period and the potential for asset appreciation.
@denissego8554 Жыл бұрын
Tnx
@LennyinFlorida Жыл бұрын
Great video.
@pama1 Жыл бұрын
Another great video! We just need more and more people to jump in the BTC train. Many are still oblivious!
@retrobeaver167 Жыл бұрын
Received my Jade wallet
@Bitcoin_University Жыл бұрын
Nice
@P__114 Жыл бұрын
How is it? Are they trustworthy?
@ralfbo685 Жыл бұрын
Good luck, I had issues using it. Very glitchy in my experience
@lol-ld3jh Жыл бұрын
Love mine no issues
@heyblinkin5366 Жыл бұрын
I’m tech retarded, and I figured it out no problem. I think BTC sessions might have a tutorial.
@davidhein4300 11 ай бұрын
Funny how govt doesn’t buy property through eminent domain at the top of the market. I don’t think it was a coincidence that all the houses needed to expand the I-5 through Norwalk California were purchased around 2009-2010 as opposed to 2005-2006 when they knew which ones needed to go.
@terapiabitcoin Жыл бұрын
Great video
@summerbreeze5115 Жыл бұрын
Hey how good is Foundation Passport hardware wallet? It's btc only
@drewwood5778 11 ай бұрын
I sweep the cash flow from my 40 units into bitcoin. During the recent dip real estate produced more bitcoin for me and my family while maintaining an income for bills which bitcoin cannot do unless you sell it.
@denissego8554 Жыл бұрын
Please talk about cash flow with bitcoin, does it exist and how safe it is and if not, how it might work in the future
@thomaslhommedieu7379 11 ай бұрын
you're the best
@cuetheplanesound8110 Жыл бұрын
I've been saying this for the last 5 years. Thanks Mr. Kratter
@Bitcoin_University Жыл бұрын
You've been right
@heinrichpelser 11 ай бұрын
Life is not back and white. Invest in different asset classes to make sure you hedge.
@p00ka64 Жыл бұрын
Oh you went there
@marlotree6909 Жыл бұрын
Occupy small, live Big, self-sovereign is waytogo with property
@gaeldesmontagnesnoires1711 2 ай бұрын
Feels like i'll be renting my entire life ..
@user-ol7tl1vf5m 2 ай бұрын
The real estate vs. Bitcoin debate sparks crucial conversations about rethinking money and investment strategies. While real estate has traditionally been viewed as a stable investment due to its tangible assets and potential for rental income, it's essential to consider its value in a deflationary Bitcoin system. In such a system, where the purchasing power of Bitcoin increases over time, real estate's value may be reevaluated. This prompts us to reconsider traditional notions of wealth preservation and explore alternative avenues for financial growth. The debate highlights the need for individuals to broaden their perspectives and adapt to the changing landscape of finance and investment in the digital age.
@Pravin_Yeshua_BTC Жыл бұрын
I would not ever want to rent out my home. I will always choose to sell it when moving & funnel that money in bitcoin. Could you do a video on the Jade? I have it, but I’m having a hard time viewing my balance when I don’t have the Jade plugged in”.. I was told to create a 2nd wallet view only” but that one just sits under the first on main screen with 0 bitcoin. I suppose it’s under the seed phrase of the first one because it didn’t prompt me to write down any new words. Send help 🙃
@chriskyle41 Жыл бұрын
Great video Matt! Always love your content, keep up the good work!
@edfox2725 Жыл бұрын
Nothing better than relaxing with my morning coffee and learning from Matthew. Thanks brother!
@Bitcoin_University Жыл бұрын
Thanks for spending your morning with my channel
@yehimstone5492 Жыл бұрын
How do I put bitcoin on hard wallet using a cell phone?
@NarwhalChaser Жыл бұрын
Hi Matthew, thanks for the great video. You have many valid points in this video, but I you missed the larger topic of real estate being more of a business than an investment. Without proper systems and processes, it can certainly be a nightmare. You also missed some of the biggest advantages to owning real estate, namely depreciation and 1031 exchanges. Would you consider starting an RE investment business in today’s environment? I’ve been considering starting a small PE shop focusing on commercial multifamily (5+ units per property). The returns and upside tend to be higher than single family, and it’s scalable both in terms of property size and because you’re taking on investor capital (family, friends, and close network to start off). I have a fair amount of bitcoin and I want to feel like I’m working towards a better future for myself and my family while continuing to hodl. Hopefully the business would grow to the point within ~10 years where I could also buy tons more bitcoin
@Bitcoin_University Жыл бұрын
You can call it a business or investment, but the fact remains that it's an allocation of capital/savings that could be used for other investments as well. I think that 1 Bitcoin will be worth over a $1 million in 10 years from now, and you are unlikely to get anywhere near those returns in real estate. Especially with government taxes and interference. I think that starting a property management company (which requires minimal capital) would make more sense, since it would scale more quickly.
@NarwhalChaser Жыл бұрын
Thanks for your thoughts, Matthew! The primary considerations for starting the business have been to have scalable income, semi-passive income, and more flexibility over how I spend my time working. You’re right that maybe a less capital-intensive business could also accomplish these goals. Just curious, what are your assumptions for the $1M price target? I know we see many markers leading to this every day, but is there a specific methodology you enjoy here? I know Greg Foss has some interesting considerations for a similar target
@Bitcoin_University Жыл бұрын
@@NarwhalChaser kzfaq.info/get/bejne/Z9uXfpWoxtenoYE.html&ab_channel=BitcoinUniversity
@lonamisa_ 11 ай бұрын
serious question: i'm a huge believer in bitcoin, but the question i struggle with each day is: how much weighting should bitcoin occupy in my portfolio? agree that there's many downsides to owning rental properties but one thing rental properties can do vs hodling btc is that they can generate cashflow.
@mississippiapple1078 Жыл бұрын
It's like you read my mind
@YaboiFreshMemes Жыл бұрын
wow this really fortifies bitcoin's use case there is nothing compareable to bitcoin it is the ultimate money that you can take anywhere in the world with you
@P__114 Жыл бұрын
Matthew can you cover Binance asap? Please? Thanks
@roadrunnergtx68 Жыл бұрын
Hello Matthew, Received my Jade the other day, but I am nervous on migration my BTC from Trezor to it. Thanks for the advice on Jade. Watch your videos all the time. Best of luck.
@ralfbo685 Жыл бұрын
Migrate a little bit at a time
@roadrunnergtx68 Жыл бұрын
@Ralfbo Thank you for reaching out. I did that when I transferred my coins to Trezor. What I am nervous about is how to move them from one hard wallet to another. Also, is it safe to keep altcoins in Trezor. From what I understand, it's only BTC that can be compromised.
@ralfbo685 Жыл бұрын
@@roadrunnergtx68 altcoins in of itself is less safe than Bitcoin, so do with that what you want. Moving from one Cold storage wallet to another is simply moving coins from one address to another. It's the same process.
@roadrunnergtx68 Жыл бұрын
@@ralfbo685 Thank you very much.
@roadrunnergtx68 Жыл бұрын
@Ralfbo Do both wallets have to be connected with the desktop simultaneously.
@SkinnyCow. Жыл бұрын
Yes, but stocks offer the same cost free holding as does bitcoin.
@mcmusic309 11 ай бұрын
Please make a video on setting up a bitcoin node at home!
@nathanvandermost6616 Жыл бұрын
Great video! Does anything change with your thesis if you rent your property and tenants pay rent in Bitcoin?
@Bitcoin_University Жыл бұрын
That's definitely an improvement, but your property is still subject to property taxes, maintenance costs, eminent domain, frozen rents, etc
@mississippiapple1078 Жыл бұрын
Can not recoup tax insurance
@omarghosn8655 Жыл бұрын
I am a bitcoin maximalist (I teach it as an elective in HS :) but have also learnt how powerful RE can be to your bottom line. I think there is something to be said about the established RE market and the physical nature of land/homes. RE has also not been demonized by the powers that be. It is a fantastic thought exercise though when you look at ease/speed of unloading, liquidity, use as leverage, portability, etc
@prancer1803 11 ай бұрын
Bitcoin and real estate can both exist as hard assets to some degree. Different use cases but both valuable.
@doublenickel1000 10 ай бұрын
IMO, bare land is maybe a better investment than a house. There's no maintenance, the taxes are WAY lower, and you can rent to farmers or harvest timber from it, or both. But BTC is definitely more convenient and way better money.
@Mike-dd8bd 10 ай бұрын
Its kind of a joke to say bitcoin is a better investment. real estate has been a thing for thousands of years and people NEED it. No one needs bitcoin.
@doublenickel1000 9 ай бұрын
Yeah, I guess no one needs a non-inflatable currency that can't be confiscated. That can be sent anywhere on the planet person to person without a bank taking their cut. Nah. No one needs that. @@Mike-dd8bd
@sharpenedge Жыл бұрын
Good morning Matt! I've been listening to Mariana Mazzucato lately about "redefining value" and this 'economist' is scaring the crap out of me. I'm not sure she's hostile to bitcoin yet... But "Know thine enemy." You may find her interesting.
@kpmoresco Жыл бұрын
In theory, bitcoin is better than a large number of assets, but not so much in reality. It's all in an individuals perception of value and safety. Not enough people are "there" yet
@prancer1803 11 ай бұрын
It may be in the long term. But that ‘long term’ may be 20 years
@bigboiwaffle5076 Жыл бұрын
Totally reasonable and sound, as always, Matt. Problem is, how to convince my wife...
@Bitcoin_University Жыл бұрын
I'm arguing against investment properties, not against owning your primary residence, if that helps
@_N4T3 Жыл бұрын
This is why my home is also my vehicle and my bread winner 😂
@stevelegreid Жыл бұрын
Love the Pacific Heights reference. They don’t make movies like that anymore
@Emrico35 Жыл бұрын
Very correct. The only advantage of real estate is mortgage advantage. You can just pay %20 and pay the rest in 10-20 years. Imagine a proposition like this would be amazing in bitcoin, yes? You buy 10 BTC and pay only%20 in cash and pay the rest %80 in next 20 years with %3-5 rate. Unfortunately a proposition like this doesn't exist in bitcoin but it does in real estate. In addition, real estate provides cash flow like %5-8 a year. I like diversification and I like both real estates and bitcoin. Can we get in a 10-year megabear cycle where we will be able to collet bitcoin cheap? Yes, it's possible. Maybe unlikely but it's a possibility. So it's a good idea to have some exposure on real estates too in my opinion in a case something bad happens ..
@joemama69448 Жыл бұрын
Mythoughts exactly
@hnhl2770 11 ай бұрын
There's a reason for that. Real estate generates cashflow that can be used to pay the loan back. Either because you use it to live in it, generating savings to pay, or because you rent it to other who pay for you. BTC has no such cash generating properties. It does other things better than real estate, most importantly storing your wealth and being mobile. But it does not generate cash.
@Emrico35 11 ай бұрын
@@hnhl2770 You can make bitcoin generate cash also. You can put your money in Celsius or Blockfi in order to have passive income:))) (just joking)
@Emrico35 11 ай бұрын
I prefer to cashout and sell my bitcoins 1-1,5 years after halving. Why not sell? Even miners sell. If bitcoin is overvalued, you should sell and take profits.
@hnhl2770 11 ай бұрын
@@Emrico35 Too soon, too soon!
@fannys941 Жыл бұрын
Wow.
@timecone57 Жыл бұрын
Own a 2br/2ba condo. It is consistent money maker. At the end of the day, it is about 50% of your monthly rent is profit. Getting good tenant is key. Btc is good but doesn’t provide income. Until other people will pay in btc.
@handle32491 11 ай бұрын
Great video as always Matthew. Would love to hear your take on the current housing crisis in Canada at some point. Some interesting things at play here. For example, in spite of housing affordability being completely out of control, the current government insists on inviting record numbers of newcomers to the country. At the same time, in light of our central bank's current hiking cycle, banks are allowing folks with variable rate mortgages to extend their amortizations to 40 years in some cases to lower their monthly payments and, unlike in the US, all mortgages in Canada need to be renewed every 5 years. This leaves younger people such as myself stuck renting at ever increasing prices. While I would love to own property to live in, I am at least thankful to have BTC as a long-term savings vehicle. All the best, G
@doublenickel1000 10 ай бұрын
"the current government insists on inviting record numbers of newcomers to the country." Very interesting. My wife and I have owned a house in Canada for about 20 years, and I'm now thinking of selling because I found they won't let me live in it year-round even though my wife is a Canadian citizen. I suppose my being an American has something to do with it?😁
@Georgggg Жыл бұрын
Real estate is the best base for taxation. Land value tax is most viable long-term solution for housing. It is infinitely better than VAT or taxes on labor, have no negative externalities. This is risk for landlords, the only thing saves them right now is that general public not aware of it yet. In Australia, where landlordism got extreme, people started to ask questions and slowly enroll taxes on landlords.
@beerkegaard Жыл бұрын
People like rentals, ethereum, treasuries, dividend stocks, etc. Because of the appeal of yield. Bitcoin "doesnt earn anything" and so there are a class of investors uninterested in it
@captainfuture2882 Жыл бұрын
Also the same compared to stocks. No more depending on laws, being screwed over by Hedge Funds who cheat and use laws the wrong way do disown you. Losing money, time and your health to the criminal financial system. I wish I had invested everything in Bitcoin.
@Ernesto.R. Жыл бұрын
Hello Matthew. Having a limited supply of BTC is ideal. However, It seems to me that Wall Street could manipulate BTC by issuing paper BTC. Similar to what they do with gold and silver. What are your thoughts on this?
@Bitcoin_University Жыл бұрын
Bitcoin is much less easy to manipulate using paper Bitcoin because Bitcoin is much more portable and easy to store than gold. Unlike Bitcoin, most gold is in government or central bank vaults. Institutions that are short Bitcoin by issuing paper Bitcoin risk blowing themselves up: kzfaq.info/get/bejne/e56YeNiIxKergGw.html&ab_channel=BitcoinUniversity
@kvdp9543 11 ай бұрын
So nice to hear it explained without Saylor's anger. One line secondhand quotes are all I can take from the guy and I wouldn't trust him to take my wife for a spin in his yacht LOL.
@pugsymalone6539 11 ай бұрын
The Pug abides. Pug stores value in cat poop. Wonderful ROI on the black market.
@osdias 11 ай бұрын
A common argument that I hear in this debate, is that rental property provides passive income, while bitcoin does not unless you put it in risky third parties like blockfi, who may loose your bitcoin. It would be interesting to see a video about your thoughts on this.
@johnsartain4160 11 ай бұрын
Let's say you earn 1% of the house's value per year as the passive income. That won't keep up with inflation ever. Well Bitcoin might not necessarily keep up with inflation it's definitely not going to be inflated.
@jorgesoto2020 Жыл бұрын
You never own 100% the house or the land under it. TAXES!! Even after paying the mortgage. Oh BTW If you've lost your entire home, you'll still need to pay property taxes for the land. As you decide whether to rebuild or move into a new house, check in with your county assessor's office to find out whether your pre-damage property taxes can be transferred to your new home.
@jeffpeterson4287 Жыл бұрын
Matt What percentage of your portfolio would you recommend be in BTC?
@Bitcoin_University Жыл бұрын
That will vary from person to person. It depends on net worth, age, income, risk tolerance, future income expectations, how much debt you have and what kind, and especially on how well you understand and are comfortable with Bitcoin. There's no one size fits all. However in my experience, the more you research Bitcoin, the more you want to own.
@lukedaley5013 Жыл бұрын
Big fan, but don’t you own properties in California??
@ryansgr8 Жыл бұрын
$30.64 is the 1913 purchasing power of $1 in 2023 so it is even worse than the chart through 2020. Said another way the dollar lost 96.7% of purchasing power since the Federal Reserve was created.
@Bitcoin_University Жыл бұрын
Yes, thanks for the updated numbers.
@dijidal Жыл бұрын
Just watched a fascinating video by Professor Barth called ‘The Secret Meeting at Jekyll Island. Mind blown!
@isaacsilvar2893 11 ай бұрын
all btc is now on blockstream jade🥳
@BitcoinAndChess Жыл бұрын
Wow, I finally have a Matthew Kratter video that I disagree with. Unless you plan to be a homeless Bitcoiner, you still have to pay for ALL of those housing costs (and more) as a renter. Renters pay utility costs, maintenance, property taxes, insurance... it's all rolled up into a monthly payment called "rent" and paid to the landlord. That landlord is not in the business of losing money or giving away housing for nothing in return, so you are paying for everything PLUS a little extra for the landlord's profit.
@Bitcoin_University Жыл бұрын
As I mention in the video, I'm not arguing against owning your own home-- which also gives you self-sovereignty to an extent. I'm arguing against buying a second home or rental property as a store of value.
@iltam-sumra-rashupti-elatim 11 ай бұрын
how to live in bitcoin ?
@dcnchrislincoln-ur7iu Жыл бұрын
Plato would have loved BTC! It’s as “real” as it gets!
@Bitcoin_University Жыл бұрын
That's a great topic for a future video
@michaelp9707 Жыл бұрын
One Big reason modern real estate leaks "economic energy" is because of low quality materials and products used particle board,untreated wood,cheap roofing instead of metal etc etc
@Bitcoin_University Жыл бұрын
Yes, great point. The main reason that low quality materials have replaced high quality building materials has been the deleterious effects of inflation, which is caused by central banks.
@IaintTheHerb Жыл бұрын
The counter argument would be the track record of real estate, generally, since the early 1970s and the boomers who participated by holding theirs as a version of the old Christmas Club forced savings plans. They've made out well, mostly. They would say BTC had a good run, but good luck these days, and if you can handle the risks mentioned and have the time, real estate is a more certain path. What say you?
@Bitcoin_University Жыл бұрын
Interest rates went from 20% to 1% over this time period which is really what juiced stock, bond, and real estate returns. The risks of real estate confiscation are much higher than people believe since we are in the 4th turning. Bitcoin's run is just beginning-- Bitcoin has no top, because fiat has no bottom.
@Kittensarevicious Жыл бұрын
Hey Matthew, have you also sold all of your stock holdings just like you sold all of your rental properties?
@Bitcoin_University Жыл бұрын
Yes, I have sold every single share of stock that I am able to sell. I still own some shares of stocks that I cannot sell because they are locked up in VC funds. I will dump those when I can, and move the proceeds to BTC.
@Kittensarevicious Жыл бұрын
@@Bitcoin_University Impressive 👍🏼
@markwebber9883 Жыл бұрын
Do you sell BTC for living expenses? Maybe you keep some rental property for income? I can’t bear to think about selling BTC today for expenses. In the future they will be the highest expenses I will have ever paid. Have you made a video on BTC not following Stock-to-Flow any more?
@Forestwarden 11 ай бұрын
Clearly a house has a plethora of carrying costs compared to BTC, but I can’t see how anyone in their right mind believe this… magic internet money is a better investment than land that feeds you, a house that shelters you, an asset that you can borrow against, pass down, leverage etc. My tax lien investing portfolio ALONE since 2019 has surpassed what I would have made if I owned 7 BTC AND sold at the ATH.
@rafaelmercer21 Жыл бұрын
You literally just outlined why we’ve been selling some of our real estate and buying BTC. Real estate is a headache compared to just holding BTC.
@Bitcoin_University Жыл бұрын
And I used to absolutely love rental properties. . . but that was before I understood BTC
@SuperheroArmorychannel Жыл бұрын
As a landlord for over 20 years i agree with everything you said, but 100% of my income is from rental income, if i sell all my rentals how am i supposed to produce a living wage from bitcoin?
@IaintTheHerb Жыл бұрын
@@Bitcoin_University most people boasting about their "income property" are either bad at calculating their costs accurately or are flat out lying. To make any real profit you pretty much need to be a slum lord in a low end property. Even then, you're still only clearing 7 or 8 bucks an hour once you factor your time spent.
@freedomfight1933 Жыл бұрын
Going through the expenses of real estate without talking about the income isn't a fair argument. Rental properties do usually make money in cash flow. And in appreciation do to the dollar loosing value, same as btc. And there's tremendous tax advantages. It's not that hard to do if you have fairly significant capital to play with, especially if 5-8% (on cash flow not including appreciation) is what you're OK with. The main barrier to entry for most people is having that much cash to begin with. Of course you're correct it's more of a headache than doing absolutely nothing. If you can afford to do absolutely nothing good for you. Rich people owning real estate they don't even rent out is clearly just a diversification play. Those people also own just about every other asset. And I come from the perspective of loving both these assets you're comparing. But I think it's clearly trying to compare apples to oranges.
@dn2817 Жыл бұрын
Maybe i should sell my shares of tsla while its up & buy more bitcoin! Hmmm i am diversified though
@CorwinYoutube Жыл бұрын
Good Morning Matthew! Your work has helped me more fully understand #Bitcoin, the potential of it's underlying technology, and how important it is to keep my investment in it safe. Now running my own low power miners, a Ronin Tanto connected to a Sparrow wallet, and mixing to high quakity cold wallets. Plan to take your advanced courses this summer during some vacation time. Please keep spreading the word, so valuable!
@BatmanBoss Жыл бұрын
Go Bitcoin 🧡🧡🧡
@cramsa 11 ай бұрын
I see more and more educated young people who can’t afford to buy their first starter home… totally crippled by debt and the price of homes moving up faster than their Incomes.
@kodensherwood375 11 ай бұрын
i am one of those people..
@Harpazo787 Жыл бұрын
But what if governments and banks ban all bitcoin cash outs in the future? They can do this. Theyre bringing cbdc and actively crunching down on crypto. I can imagine a future scenario wherby all bitcoin is rendered useless as wef could ban it and stop you cashing it. Im just learning. Can btc really replace cash? But as its not physical its reliant on the grid of tech transactions
@prancer1803 11 ай бұрын
Highly unlikely in the US. In the eurozone… maybe as the centralized government is more heavy handed there. But even there if they the government wanted to stop it I think it would be very difficult
@Harpazo787 11 ай бұрын
@Prancer 180 I'm in UK so potentially even worse here 😫
@matthewc462 Жыл бұрын
Great info as always Matt!
Jordan B Peterson
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