Hey, I’m about to receive a chunk of fiat money. I’d love to buy real estate, but it’s not enough for that, it’s roughly the price of a brand-new car. I don't need a car though, so I want to invest it instead, with a 5 to 10 year horizon.
I asked around for advice. Most people who aren't into Bitcoin obviously told me to just put it in a traditional savings account. But interest rates are awful, so inflation just eats it up.
Others suggested opening a stock brokerage account because of the tax advantages after a few years, allowing me to buy the dips over time.
Finally, some recommended life insurance. The bank or insurance company manages it, the principal is guaranteed against losses, and they pool everyone's money into different stocks. They give you a return that fluctuates but here it's usually hovers around 7% a year. It sounds okay for someone who has zero knowledge, wants no risk, needs liquidity, and wants tax breaks for inheritance. But knowing how the stock market works, if they make +50% or more in a year, especially in the current market environment, and only give me 7%, it feels like they’re squeezing out my cash, while they're pocketing huge commissions, I imagine, and only throwing me crumbs.
Honestly, I feel like the smartest move is to just DCA into bitcoin over the coming months, since it looks like the perfect long-term accumulation phase.
What do you guys think? Should I diversify with some stocks, or just go all-in on a Bitcoin DCA?
What I like most about Bitcoin is that there's no counterparty risk. With everything else, I depend on a third party to validate the potential appreciation of my assets.
Bitcoin until stock prices are denominated in BTC, which I'm guessing happens to be about 5-10 years.
So you see a Bitcoin standard in 10 years..That's rather optimistic, but I like the idea.