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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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The Dawning of a New Era: Real Estate and Art Replace Traditional Commodities

REAL ESTATE NEWS (Los Angeles, CA) — Since the dawn of civilization, mankind has valued two things above all: land and currency. These two items have been the cornerstone of commerce and society’s foundations, shaping the course of human history. In essence, the era of Real Estate and Money dominated our economic systems, transforming landscapes and societies alike. However, a dramatic paradigm shift is now occurring. Money, the age-old symbol of power and influence, is gradually losing its magnetism, and in its place, creativity and art are taking center stage. Part of the traditional American economy, as we knew it, has died. Welcome to the dawn of the Real Estate and Art era.

The End of the Real Estate and Money Era

Real estate has always represented a stable and tangible asset, a physical embodiment of wealth that offers security and sustenance. Conversely, money, as a universally accepted medium of exchange, has facilitated commerce, effectively shaping our modern economic framework. Throughout history, whenever the economy sours, the inherent value of art soars.

The symbiosis between real estate and money has been largely uncontested throughout history. The quest for monetary wealth became a universal aspiration, influencing social structures, human behaviors, and the course of global events. However, this economic model predicated on perpetual growth and accumulation is now being questioned.

Why? Primarily due to growing dissatisfaction with increasing wealth disparity, environmental concerns, and a general desire for a more equitable, sustainable economic framework. Additionally, the digital age’s advent has sparked a revolution in how value is perceived and exchanged, challenging the traditional hegemony of money.

Art and Architecture: Interweaving Threads of Inspiration

Our cities, homes, and spaces shape our lives and influence our thoughts, feelings, and actions. Each structure, every building is more than just bricks and mortar; it is an expression of the spirit of its time, its people, and its creators. Similarly, art, in all its forms, is the distilled essence of the human condition, a testament to our triumphs, struggles, dreams, and desires. A recent conversation between real estate broker and art aficionado Corey Chambers and the multifaceted Dallas-based artist Michael Gibson offers a glimpse into the profound intersections between art and architecture and illuminates the inspiration flowing between the two disciplines.

Art and architecture share a unique symbiotic relationship. They mutually influence, inspire, and enrich one another, creating a seamless blend of aesthetics, function, and emotion. As an illustrator, designer, and artist, Gibson’s work spans these overlapping domains. His architectural renderings, steeped in intricate detail, reveal a deep understanding and appreciation of space, form, and design. In contrast, his abstract paintings provide a respite, a realm of expression unfettered by the constraints of precision and specificity inherent in architectural renderings.

Gibson’s diverse oeuvre embodies the fusion of structure and imagination, discipline and freedom, precision and spontaneity. His architectural work showcases a meticulous eye for detail, while his abstract art represents a creative exploration, an artistic journey into the realm of the undefined and unrestricted. It is this balance that not only enhances the visual appeal of his creations but also imbues them with a distinctive depth and dynamism.

Chambers, a real estate broker and burgeoning art broker, recognizes the potential of this synergy. His burgeoning interest in incorporating art into real estate transactions is a testament to the transformative power of creativity. His AI renderings inspired by Gibson’s work embody a novel intersection of technology, art, and real estate, a fusion that signifies the advent of a new era of creativity and innovation in these domains.

The interplay between art and architecture, as revealed through this dialog, underlines the importance of a multifaceted approach in both realms. A property is more than just a physical structure; it is an embodiment of a specific aesthetic and artistic vision. Similarly, a work of art, abstract or otherwise, is more than just a visual spectacle; it is an expression of an emotional journey, an intellectual exploration, a story waiting to be told. It is the interweaving of these threads of inspiration that makes both art and architecture so compelling and impactful.

This dialog is a testament to the power of collaboration and mutual inspiration in the realm of art and architecture. It underscores the importance of seeking and celebrating diverse perspectives and expressions. Whether you are an artist, architect, real estate professional, or simply an art and architecture enthusiast, let this conversation inspire you to view your work and the world around you with fresh eyes, to find the extraordinary in the ordinary, and to create and appreciate art and architecture that resonate with authenticity, passion, and purpose.

As we continue to explore and embrace the synergies between art and architecture, let us remember that our creations, whether they are physical structures or abstract artworks, are more than just objects or images. They are manifestations of our collective human spirit, embodiments of our shared dreams and aspirations, and most importantly, reflections of our shared humanity.

The Creative Inspiration: The Birth of the Real Estate and Art Era

In this new era, creativity and imagination, embodied through art, are emerging as alternative sources of value. Digital transformation and technology’s advancement have democratized the creation and appreciation of art, redefining it from a niche commodity for a privileged few to an accessible, universal asset.

The NFT (Non-fungible token) revolution, a child of blockchain technology, has fueled this transition. It has enabled digital artists to monetize their work, validating art as an asset class. Simultaneously, this paradigm shift is also being reflected in the realm of real estate, where aesthetics and artistic expression are increasingly being recognized as valuable attributes.

Art and Real Estate: A Perfect Symbiosis

Real estate, traditionally valued for its utilitarian purposes, is now being increasingly appreciated for its aesthetic and artistic dimensions. A property’s architectural design, environmental harmony, and visual appeal are gaining importance as determinants of value. The result? A rising appreciation for architecturally distinctive properties, sustainable designs, and structures that serve as canvases for artistic expression.

At the same time, the fusion of art and real estate is blurring the lines between living spaces and art installations. Innovative designs, technology-driven art integrations, and the proliferation of shared spaces that promote artistic expression are reshaping the property market.

Art as an Alternative Asset Class

Art as an investment has traditionally been the domain of the wealthy, offering a way to store value and flaunt social status. However, the digital revolution has opened up this sector to a broader demographic. Platforms facilitating fractional ownership, online art exchanges, and NFTs allow ordinary individuals to own, appreciate, and profit from art.

The shift towards valuing art and creativity is also inspiring new business models. ‘Art-secured lending’, where artworks serve as collateral for loans, and ‘art investment funds’, which operate like traditional mutual funds but with artworks as underlying assets, are flourishing. These developments represent the formal recognition of art as a credible, profitable, and stable asset class.

Re-Defining Wealth

The integration of art and real estate is heralding a fundamental shift in our perception of wealth. The traditional concept of wealth, rooted in the accumulation of monetary assets, is being challenged. Instead, wealth is increasingly being defined by the possession and creation of unique, aesthetically pleasing, and emotionally resonant assets – art.

This shift towards valuing creativity, aesthetics, and emotional resonance over pure monetary value reflects a broader societal trend. As we move further into the digital age, intangible assets like data, intellectual property, and, indeed, art, are gaining prominence. This transition represents a move away from the traditional materialistic definition of wealth towards a more nuanced, holistic, and diversified understanding.

The end of the Real Estate and Money era marks a seismic shift in our economic and social paradigms. As we transition into the era of Real Estate and Art, we’re not just witnessing the rise of a new asset class, but a fundamental re-definition of what we value as a society. The ascendance of art signifies a new appreciation for creativity, uniqueness, and emotional resonance, marking a break from the homogenizing influence of money. As we embrace this new era, it will be fascinating to watch how this shift will shape our lives, communities, and societies.

Get a free list of lofts, condos or apartments in the Arts District of Downtown Los Angeles. Fill out the online form.

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.