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Why Your Investment is Sh!t: Navigating the Quirky World of Modern Investing | Real Estate and Stocks Vs Bitcoin

💛 Best Investments During Stagflation ✨

REAL ESTATE NEWS (Los Angeles, CA) — In the ever-evolving landscape of investment, the term “smart money” might seem like a misnomer. From Wall Street to Main Street, investors are scratching their heads, wondering where the next gold mine lies. Amidst this confusion, Raoul Pal, a wealthy hedge fund investor, made a bold statement: All investments are “dumb” compared to Bitcoin. Let’s unpack this.

Bitcoin: The Digital Gold Rush

Pal’s stance on Bitcoin is nothing short of revolutionary. In his view, traditional investments like stocks, bonds, and real estate pale in comparison to the digital currency. This sentiment resonates with many, especially considering Bitcoin’s meteoric rise. But is it really the financial panacea Pal makes it out to be?

Traditional Investments: Not So Golden Anymore?

Take, for example, the curious case of Downtown Los Angeles (DTLA) lofts. While most loft condos have doubled or tripled, some of these properties, once the epitome of urban chic, have stagnated in value since 2009. This stagnation is a stark reminder that traditional investment vehicles are not infallible. But does this mean they’re “dumb”? Well, 2023 certainly has been plagued by higher interest rates, a bit of tarnishing for some housing markets and reports of impending malaise.

The Risk and Reward Balancing Act

While Bitcoin offers the allure of high returns, it’s a rollercoaster ride of volatility. Traditional investments, on the other hand, offer stability and predictability. It’s a classic case of risk versus reward. Bitcoin investments more than doubled in 2023. Bitcoin has gone up more than 5 million percent in the last 14 years. Bitcoin has always made gains when looking at three year periods. After studying Bitcoin’s short-term, medium and long term gains, many can now clearly see Bitcoin as the proven safe haven, while viewing all other investments as more risky.

Diversification: The Key to Smart Investing?

Perhaps the real wisdom lies in diversification. A portfolio that balances the excitement of Bitcoin with the steadiness of traditional assets might be the smartest play of all! Raoul Pal sees this a a given, already proven — yet still early enough to see a lion’s share of gains. Raoul is now informing the early birds about their next big, juicy worm, A.I. Artificial Intelligence.

Comparison

  • Return on Investment (ROI): Bitcoin has provided astronomical returns for those who invested early and held onto their assets. However, these returns are not guaranteed to continue and come with high risk. In contrast, real estate has offered more stable, albeit generally lower, returns over the same period.
  • Risk Profile: Real estate is typically considered a lower-risk investment compared to Bitcoin. The extreme volatility of Bitcoin makes it a high-risk investment.
  • Liquidity: Bitcoin is more liquid than real estate. You can buy and sell Bitcoin quickly, whereas selling real estate can take months.
  • Market Accessibility: Bitcoin is more accessible to the average person due to its lower entry cost compared to real estate, especially in high-value markets.
  • Impact of Economic Cycles: Real estate is more directly tied to local and global economic conditions, whereas Bitcoin often behaves independently of traditional economic cycles.

While Bitcoin has offered potentially higher returns since 2010, it comes with a much higher risk and volatility compared to real estate, according to the mainstream media. Real estate investments have provided among the best stable growth and the additional benefit of rental income over the last 100 years, although the returns are generally lower than those seen with many Bitcoin investments. The choice between the two depends on an individual’s risk tolerance, investment goals, and market knowledge. While Bitcoin is clearly the king of all investments since 2010, you still cannot live in a Bitcoin. For most people, BTC must be converted into cash, real estate or something else popularly tangible in order to gain a sense of real-world currency.

How Bitcoin became King of All Investments

The rise of Bitcoin as a prominent investment vehicle can be attributed to several factors, particularly in contrast to traditional fiat currencies like the U.S. Dollar. Here’s a breakdown of how Bitcoin has gained this status:

1. Decentralization and Limited Supply

  • Bitcoin’s Limited Supply: Bitcoin is designed with a capped supply of 21 million coins. This scarcity is built into its protocol, mimicking the scarcity of precious metals like gold. In contrast, fiat currencies can be printed in unlimited quantities by governments, leading to potential inflation.
  • Decentralization: Bitcoin operates on a decentralized network, meaning it’s not controlled by any single entity or government. This decentralization is appealing to those who distrust centralized financial systems and government control over money.

2. Inflation and the Devaluation of Fiat Currencies

  • Historical Devaluation of the U.S. Dollar: Since its inception in 1792, the U.S. Dollar has lost a significant amount of its purchasing power. This is mainly due to inflation and changes in monetary policy. The claim that a dollar today is only worth about 3% of its 1792 value highlights the impact of long-term inflation.
  • Bitcoin as a Hedge Against Inflation: Many investors view Bitcoin as a hedge against inflation. Its pre-programmed rising value (through events like ‘halving’) and limited supply contrast sharply with the inflationary nature of traditional currencies.

3. Technological Innovation and Digital Transformation

  • Blockchain Technology: Bitcoin’s underlying technology, blockchain, is seen as revolutionary, providing security, transparency, and efficiency. This technological edge makes it a compelling investment compared to traditional assets.
  • Digital Era and Internet of Money: In an increasingly digital world, Bitcoin represents a shift towards digital assets, fitting well into the narrative of the ‘Internet of Money’.
  • NFT: From McDonalds to Nike to the NBA, crypto blockchain NFT Non-Fungible Tokens are turning into mainstream investments — another exciting, new and proven tech investment. Entar® is in final development stages, with recent limited beta release of the Entar® Real Estate NFT.

4. Market Sentiment and Speculation

  • Speculative Investment: A significant part of Bitcoin’s value is driven by investor speculation. As more people buy into Bitcoin, expecting its value to rise, this demand can drive up prices.
  • Media and Public Perception: Media coverage and public perception play a crucial role in Bitcoin’s popularity. As more people become aware of and understand Bitcoin, its adoption and investment appeal increase.

👑 All Hail the King 🏆

While ₿itcoin has been hailed by many as the “king of all investments,” it’s important to note that this comes with high volatility and risk. Its value can be extremely unpredictable, and while some have seen significant returns, others have faced losses because they bought high, then sold low, or were duped by bad exchanges or fraudsters. The comparison to the U.S. Dollar’s historical devaluation provides a stark contrast between traditional and digital currencies, highlighting Bitcoin’s appeal in a modern financial context. However, like any investment, it’s essential to approach Bitcoin with a balanced understanding of its risks and rewards.

Compare that to a Bitcoin, which was worth less than one cent 14 years ago, and is worth more than $37,000 today. Comparing the historical value of the U.S. Dollar and Bitcoin offers a striking illustration of the changing landscape of value and investment over time.

U.S. Dollar Since 1792

  • Long-Term Devaluation: The value of the U.S. Dollar has steadily decreased since its inception in 1792, primarily due to inflation. Over the centuries, the purchasing power of the dollar has significantly eroded. This gradual devaluation reflects the impact of various economic policies, including the departure from the gold standard and the Federal Reserve’s monetary policy.
  • Current Value: As of now, the purchasing power of the dollar is only a fraction of what it was in 1792. This decline has been a slow, steady process influenced by economic growth, inflation, and changes in fiscal policy.

Bitcoin Since 2009

  • Rapid Appreciation: Bitcoin, created in 2009, was initially worth less than one cent. Over the past 14 years, its value has experienced dramatic fluctuations, reaching peaks that have made it one of the most lucrative investments for some early adopters.
  • Current Value: As of now, Bitcoin’s value is more than $37,000, a remarkable increase from its initial worth. This increase is partly due to its capped supply (only 21 million Bitcoins will ever exist), growing acceptance, and increasing interest from both retail and institutional investors.

Comparison

  • Growth Rate: The growth rate of Bitcoin is unprecedented in the history of modern investments, especially when compared to the slow and steady devaluation of the U.S. Dollar.
  • Nature of Value: The U.S. Dollar’s value is backed by the government and is influenced by economic policies and global trust in the U.S. economy. Bitcoin’s value, on the other hand, is driven by market demand, scarcity, and its perceived utility as a digital asset and store of value.
  • Volatility: Bitcoin is known for its high volatility, with rapid price changes. In contrast, the value of the U.S. Dollar, while declining in the long term, does so in a relatively stable and predictable manner.
  • Risk and Return: Bitcoin represents a high-risk, high-return investment, suitable for investors who can tolerate significant price swings. The U.S. Dollar, while stable, does not offer the same potential for rapid appreciation in value.

Compare

The comparison between the U.S. Dollar and Bitcoin showcases the evolution of what constitutes value and investment. While the U.S. Dollar has been a symbol of stability but slow devaluation, Bitcoin has emerged as a volatile yet potentially high-return digital asset. This contrast highlights the diversification in investment strategies and preferences in the 21st century.

Smart or Dumb?

So, is your investment “dumb”? Not necessarily. It all depends on your risk appetite, investment goals, and the ever-changing market dynamics. Whether it’s Bitcoin or DTLA lofts, the investment world is filled with opportunities and pitfalls. The key is to navigate it with a balanced, informed perspective.

Remember, the world of investment is as unpredictable as it is exciting. Whether you’re chasing digital dragons or betting on brick-and-mortar, the journey is as important as the destination. Stay savvy, investors!

What investments are going best right now while economic stagnation persists and consumer price inflation remains high? Some real estate transactions have completed flawlessly this year. We’ve seen one of our $1+ million home buyers get handily outbid even though he offered $50,000 above asking price on a San Pedro beach home. The rare, desirable properties are still flying off the shelves in today’s real estate market.

Get a free list of the best investments during time of stagflation. Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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Explosive Secrets Unveiled! How Bitcoin, Blockchain and Python are Revolutionizing Real Estate – Read Before It’s Too Late!

Real Estate Technologies

REAL ESTATE NEWS (Los Angeles, CA) — Technology is replacing real estate agents in Los Angeles. Technologies can be elusive or confusing, but this article will make it crystal clear. First of all, it’s continuously amazing how many people believe that Bitcoin is dead. Well, the naysayers always have said just that — over and over during the rise of the proven greatest investment and most important invention of the last 12+ years. In fact, Bitcoin has “died” all the way from less than one cent in 2009 to $27,000 today. The fact is that blockchain technology is growing exponentially, as is A.I. Artificial Intelligence. The number of whole Bitcoin owners surpassed one million this week. Blockchain technology can greatly enhance the efficiency, transparency, and security of real estate transactions. Once-mediocre programmers and lackluster coders can now write powerful real estate apps, computer programs and smart phone applications with the powerful plain-English assistance of ChatGPT.

First a valuable story:

Once upon a time, in a small town named Simpleton, lived a man named Thomas. Thomas was known throughout the town as a skeptical man. He had a keen eye for spotting bluffs, and he took pride in his cynicism.

In 2010, he came across a new technology named Bitcoin, a digital cryptocurrency that some said would revolutionize finance. But Thomas was doubtful. “How could a virtual currency, not backed by any government or commodity, have any value?” he thought to himself. Convinced it was a passing fad, he dismissed Bitcoin and went about his life.

Over the next few years, Bitcoin’s value began to rise, and stories about people becoming overnight millionaires started to emerge. Yet, Thomas remained firm in his belief. “It’s a bubble,” he would say, “and bubbles always burst.” In 2017, when Bitcoin’s value soared to almost $20,000, he felt vindicated when it crashed soon after. “See, I told you, Bitcoin is dead!” he proudly announced to anyone who would listen.

But then, something unexpected happened… (story continues later)

Real Estate Tokenization with Blockchain

Here are several powerful technologies set to destroy old drudgery as they multiply opportunities in the real estate industry:

  1. Tokenization: Real estate tokenization is the process of converting the ownership of a real estate asset into a digital token on a blockchain. This can break down the barriers to entry for real estate investing. For instance, instead of having to buy an entire property, investors could buy tokens representing a fraction of a property. This way, more people can participate in real estate investments, which could lead to an increase in overall investment activity.
  2. Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. These can be used to automate various aspects of the real estate process, such as releasing funds when certain conditions are met. This reduces the need for intermediaries and makes the process more efficient.
  3. Transparent Transactions: Blockchain provides a decentralized ledger of all transactions, making the history of a property transparent and immutable. This could significantly reduce the time and cost associated with property due diligence.
  4. Fraud Prevention: The public, immutable nature of blockchain records can help reduce real estate fraud. Once information is stored on the blockchain, it cannot be altered or removed, which creates a secure record of ownership.
  5. Efficiency in Property Management: For rental properties, blockchain technology can be used to automate rent payments and lease agreements through smart contracts. This could make property management more efficient.
  6. Land Registries: Governments and municipalities could use blockchain technology for land registries. This would create a secure, transparent, and efficient way to record and track land ownership.

Blockchain technology could “multiply” real estate by making it more accessible, efficient, and secure. It has the potential to decentralize real estate transactions and open up new opportunities for investment and innovation.

If you’ve ever dabbled even a tiny bit in computer programming, you should know about today’s new revolution that’s making coding a breeze! The new BASIC is easy to learn but super powerful. Even a real estate agent can do it 🙂 It’s called Python, a widely used, super popular, high-level programming language that’s renowned for its readability and simplicity, which makes it a favorite among many programmers from students to pro data scientists. Python can potentially change the real estate industry in several ways, especially given the rise of big data and machine learning. We’ll tell you how to make it even easier — in fact, just in the past few months, it has turned into a piece of cake. This could be the holy grail for real estate. Here are some possibilities:

  1. Data Analysis: Python, with libraries like pandas and NumPy, is a powerful tool for data analysis. In real estate, professionals handle vast amounts of data like prices, locations, property features, and market trends. Python can help analyze these datasets to derive meaningful insights, which can drive better decision-making.
  2. Predictive Analytics: Using machine learning libraries like scikit-learn, Python can help create models that predict property prices based on a variety of factors. This can provide real estate investors with better guidance when buying or selling properties.
  3. Automation: Python can be used to automate various tasks in real estate, such as scraping data from property websites, sending personalized emails to potential clients, or managing property listings.
  4. Visualization: With libraries like Matplotlib and Seaborn, Python can create detailed graphs and charts that help in visualizing real estate data. This can help realtors and investors understand market trends better and make informed decisions.
  5. Natural Language Processing (NLP): Python’s NLP libraries like NLTK and spaCy can help analyze customer reviews or feedback about properties or neighborhoods, leading to valuable insights about customer satisfaction and preferences.
  6. Geospatial Analysis: Libraries like GeoPandas enable the analysis of geographical data. Real estate professionals can gain insights into different geographical areas, like identifying potential growth areas or understanding the distribution of property types across a region.
  7. Blockchain Applications: Python can be used to develop blockchain applications, which have the potential to revolutionize how property transactions are carried out. This includes implementing smart contracts and facilitating tokenization of properties.

By utilizing Python in these ways, the real estate industry can become more efficient, data-driven, and customer-focused. Python’s power lies in its versatility, simplicity, and the vast array of libraries it provides for various applications, making it a useful tool for the evolving tech landscape of the real estate industry.

Now, the secret to powerful programming that even a real estate agent can do! ChatGPT uses plain english to assist beginner or advanced coders in several ways when programming with Python:

  1. Syntax Checking: If you’re not sure about the correct syntax for a Python statement or function, you can ask ChatGPT, and it can provide examples or correct syntax usage.
  2. Error Debugging: If you’re encountering an error in your Python code, you can describe the error to ChatGPT, and it might be able to suggest possible causes and solutions.
  3. Code Snippets: You can ask ChatGPT for examples of Python code for specific tasks. For example, you might ask how to open a file in Python, how to connect to a database, or how to use a certain library or function.
  4. Best Practices: ChatGPT can provide advice on Python programming best practices. This can be anything from how to structure your code, to how to use certain Python features effectively.
  5. Learning Resources: If you want to learn more about a particular aspect of Python, you can ask ChatGPT for resources, like recommended tutorials, documentation, or books.
  6. Algorithm Explanation: You can ask ChatGPT to explain how certain algorithms or data structures work, and it might be able to provide a simple, understandable explanation.
  7. Project Ideas: If you’re looking for something to code but don’t know what, ChatGPT can suggest Python project ideas based on your interests or skill level.

Remember that while ChatGPT can provide useful assistance and information, it’s not infallible, and it’s always a good idea to double-check any important code against official documentation or other reliable sources.

…Now, the rest of the story:

As we mentioned earlier, Bitcoin’s value soared to almost $20,000, but Thomas felt vindicated when it crashed soon after. “See, I told you, Bitcoin is dead!” he proudly announced to anyone who would listen.

But then, something unexpected happened. Instead of disappearing as he had predicted, Bitcoin began to recover. Its value started to climb again, and by 2021, it had reached a new all-time high. Thomas watched in disbelief as friends and neighbors who had invested in Bitcoin started to reap significant profits.

Confused and filled with regret, Thomas realized that his skepticism had cost him a fortune. He decided to understand Bitcoin better and started reading about blockchain technology, the underlying mechanism that powered Bitcoin. He learned about decentralization, about the security of blockchain, and about the limited supply of Bitcoin. It was then that he realized that he had misunderstood Bitcoin all along.

Determined to make amends, Thomas began investing in Bitcoin and other cryptocurrencies. He faced volatility, and there were times when he doubted his decision, but he persevered, driven by his newfound understanding.

The years passed, and Thomas’s investment started to grow. He didn’t become a millionaire overnight, but he did secure a comfortable financial future for himself. Looking back, he realized his mistake was not his skepticism about Bitcoin, but his refusal to learn about it before dismissing it.

His story became a lesson for the people of Simpleton: that it’s wise to question new things, but it’s foolish to dismiss them without understanding. Thomas’s experience taught them the importance of learning and adapting in a world that’s changing faster than ever. And he, who was once the town skeptic, became a symbol of change and learning, reminding everyone that it’s never too late to correct our mistakes and embrace new knowledge.

Get free information on any property, building, neighborhood or real estate technology. Request a free report. Fill out the online form:

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The Holy Grail of Real Estate

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker CalDRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and images created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.