how's it going today guys so today we
are going to be talking about Bitcoin
versus real estate versus stocks as far
as how you can make money with these
three different investments I have a lot
of people out there that ask me about
investing in real estate and a lot of
people lately are interested in
investing in Bitcoin and other
cryptocurrencies now I've shared this
numerous times in the past on my channel
but I'm not personally investing in
Bitcoin or any crypto currencies I do
have an affiliate link in some of my
videos so I do have a small position in
Bitcoin just from that but I'm not
other Kryptos and some people say I'm an
idiot for that and some people say that
I'm smart for doing that
that's just my own personal decision
obviously there has been a lot of money
to be made in Bitcoin over the last year
and looking back yes it would have been
something that was worth investing in
but due to this reason right here guys
this is why I'm hesitant to get involved
with Bitcoin or for that matter other
things like gold or silver these other
commodities that exist I'm going to
explain the reason why that is here okay
so first of all stocks are my number one
investment that is what I invest in I'm
a stock market investor I do plan on
getting a real estate investment this
year and of course I will share that
with you guys when I do that but right
now
stocks are my number one investment and
this is the reason why so first of all
let's talk about stocks how can you earn
money from stocks number one would be
dividends so if you're holding a stock
that pays dividends those quarterly cash
payments you're gonna get those
dividends every quarter and if you're
smart you're reinvesting those dividends
in acquiring more shares of that stock
over time the other way you can make
money from stocks is through asset
appreciation so if that underlying stock
appreciates in value due to the outlook
of the company improving or improving
earnings then you can make money in two
different ways with stocks that is what
I like about that number one you can
make money from dividends number two
would be asset appreciation if the
actual stock itself begins to increase
in price over time now ideally if you
make a good investment in a dividend
stock you should have both of these
things take place and you're able to get
paid in two different ways now these
other ways are also related to that
asset appreciation but I just want to
explain the different ways that you can
see
stock prices begin to rise first of all
would be a share buyback that would be
if a company decides they're gonna buy
back shares from the public that's going
to decrease the supply of shares out
there and it's going to increase the
demand for those shares on the public
market on the stock exchange then you
have debt reduction so if the company
decides to start paying down their debt
and improving their balance sheet all of
the sudden and this ties in to with
increasing their liquid assets all the
sudden they become a more attractive
investment and you're going to see more
people investing in that stock driving
up the demand and again you're gonna see
that stock price begin to climb and also
you can see companies reinvesting their
earnings so they do share earnings in
most cases with shareholders if they're
a company that pays dividends but they
may also decide to reinvest those
earnings in a share buyback or again
maybe they're doing one of these things
they're gonna be reducing debt or
increasing their assets or maybe they're
going to have an acquisition of some
kind there's many different things a
company can do that are going to
increase that share price you're gonna
see asset appreciation on top of those
dividend payments so that's what I like
about stocks there's a lot of different
things that can happen that are going to
allow that asset to appreciate while in
many cases you're going to get that
dividend or that rent payment as I call
it's very similar to rental income every
single quarter now let's move on to real
estate okay real estate can make you
money in multiple different ways as well
first of all rental income kind of like
those dividends but instead of getting
them four times a year you're gonna get
them every single month every month
they're gonna go get that rent check out
of your mailbox and that piece of real
estate is gonna pay you as you own it
okay on top of that if you buy real
estate in a good area and you know what
you're doing then that property value
should increase with time very similar
to that asset appreciation that we see
with stocks so real estate can pay you
in two main ways number one you're gonna
get that rental income while you own the
property and rent it out and number two
while you're holding on to that property
it should increase in value if you
bought it in a good area the other thing
that I like a lot about real estate is
it allows you to leverage your
investment okay what I mean by that is
you're in control of a much larger asset
for a smaller amount of money so most
people out there probably have a 20%
payment on a mortgage so let's say
somebody buys a house that is $200,000
and they put 20% down or $40,000 they're
now in control of a $200,000 asset for
just $40,000 now let's say over the next
five years that house increases in value
from 200,000 to 250,000 they could then
sell that house for $250,000 and pocket
that difference even though they didn't
pay for that entire house yet that is
what I like about real estate it allows
you to use leverage and it can be in a
healthy way I'm not a fan of leverage in
the stock market but real estate is the
only good form of leverage in my opinion
I mean some people do use leverage
involved with the stock market
personally I don't do that
but real estate is a healthy amount of
leverage in my opinion as far as um
owing money on something you're
investing in so that's another reason I
like real estate it's another way you
can earn money is because you're in
control of a large asset for a smaller
amount of money another way you could
make money from real estate this
probably isn't the best method but you
can get a home equity line of credit so
if you have equity built up in your
house you can get a line of credit and
use that equity as collateral against
that again that's something you can't do
with stocks you certainly can't do that
with Bitcoin but if you're ever in a
pinch you can borrow against the value
of your home and get a loan from a bank
or some institution and the other thing
I like about real estate is there's a
lot of tax advantages and tax deductions
that only real estate investors can take
advantage of so real estate when you
look at it this way
is honestly the best option out there as
far as the different ways you can make
money you can make money from your
deductions or save more money from the
tax deductions you could possibly get a
line of credit on your equity you can
use leverage you can increase the
property value see that property value
increasing with time and you can get
rental income in the process now we move
on to Bitcoin okay this is my issue with
Bitcoin how can you make money with
bitcoin the main way people are going to
make money with bitcoin or hopefully is
buying it and then selling it to someone
else down the road and hoping that in
the meantime it increases in price and
there's no other way you can make money
bitcoin is never going to earn you more
bitcoin you don't get dividends from
Bitcoin you're not going to get rent
income from your Bitcoin you're
certainly not gonna have any special tax
deductions from your Bitcoin the only
way you can make money from it is if you
buy it and then sell to someone else or
if you're involved in Bitcoin or a
cryptocurrency mining so you can either
go out there and mine these coins
yourself or you can buy and hold and
hope they increase in price that's the
same thing with gold and silver that's
the only way they're going to make you
money as if someone is willing to pay
more for them in the future think about
this guy's you could buy a piece of real
estate okay you could buy it for
$200,000 in five years later sell it for
$200,000 but in the process you made a
ton of money from that rental income
think about a stock you could buy a
stock for $20 a share and ten years
later it's worth $20 a share but over
those ten years every quarter you've got
a dividend payment so you still made
money because you're being paid in
multiple different ways if you bought
Bitcoin today and it was worth the same
amount in five years then you would have
made nothing over that whole period of
time because you can only be paid in one
way from Bitcoin and that is if someone
is willing to pay more for it in the
future then you paid today anyways guys
that is all I got for this video that is
the main reason why I've been hesitant
to invest in gold or silver or crypto
currencies it's for that reason right
there you're only going to be paid in
one way and that is if someone's willing
to pay more for that in the future then
you paid for it so I'm curious what you
guys think about that if you guys
enjoyed this video please drop a like
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out that channel merch I have the link
in the description below and I thank you
guys for taking the time to watch this
video
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