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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 putting my own money into bitcoin or 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 drop any comments you have for me below and if you’re new to my channel please consider subscribing to be notified of any future uploads make sure you check 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 you
Transcribed from video
BITCOIN VS REAL ESTATE VS STOCKS! By Ryan Scribner