Money flow to cryptocurrency, stock, real estate, gold and so on
Hi, I'm Joey Park. How are you, today? Recently, I've written 2 posts Traditional Finance and DeFi(Decentralized Financne) and Relationship between Money Supply and Interest Rates.
Sources of some illustrations are from flaticon 1, 2, 3, 4
From these posts, we were able to figure out the inflation makes the value of assets decrease. Thus, we must invest our money into cryptocurrency, stock, real estate, gold and so on. Of course, we can have investment loss, since it carries risks. As most of you guys already know or have heard about this quote, High risk, High return. I'd like to say a quote by myself. If you don't take a risk, it is rather risky! And also, we were able to realize the money supply causes interest rates to decrease.
Image source: flaticon
There are tons of cash in the world. To be rich, you need to bring money from people or follow the money flow. What is the representative example? It is a company! Companies sell their goods or services to customers, receiving money. Inflation causes the price of goods to increase. Thus, companies can make more money. Of course, it depends on the circumstances of the economy.
So, My conclusion is the beneficiaries of inflation are companies. The more global corporations such as Google, Apple, Amazon, Samsung will bring more money from ordinary people.
Therefore, I guess Warren Buffet understands this pretty simple principle and prefers long term investment of stock. If you choose good corporations and hold them for a long time, it will bring your money in the future. Of course, it carries risks.
Image source: flaticon
Some of the real estates can make passive income such as rental houses, hotels and so on. They could be handled like stock as my standard, since they can bring money from ordinary people.
Warren Buffet is one of the people using the very simple principle in the stock market. So, who is the other one in the area of real estate?
Image source: amazon
They are Donald Trump and Robert Kiyosaki! They also have been using this principle for a long time, as well as sometimes they used the leverage effect that can make more money via loans.
Image source: flaticon
How about gold and cryptocurrency? The representative cryptocurrency is Bitcoin(hereinafter, BTC). Though there are a lot of cloud mining services for passive income, BTC can't adopt the principle in general. So, I think BTC is very similar to gold in terms of characters of assets.
Image source: TheDaoMaker on Twitter
STEEM is very similar to stock and real estate in terms of characters of assets as my standard. You can make passive income 10 ~ 20% per year. However, it carries high risks such as decreasing the value of STEEM. If you can't afford to lose your money, you should not invest your money. But, STEEM could be the next generation asset like stock and real estate. So, this is the reason why I chose STEEM!
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Transfered.
What do you mean?
I agree, Steem is the only and real passive income with high returns as well as a digital real estate since you can able to rent out your SP to anyone.
Wwll, said. Many people are overlooking it.
I do not understand why people are want to be rich. There are rich pensioners. I understand that even less. Money does not matter in the end. Nobody gets to keep it. And besides, they do not even need it. At least not in the place where we go. Money do not have any kind of importance in the other world. Everyone have anything they need there. Without money.
Because the gap between the rich and poor has been increased due to the inflation. So, people want to make more money.
If you doesn't have enough money, you will be starving and not be able to buy groceries.
I also noticed that the real estate market has been growing lately.
Right, because of the inflation!
Well for real estate investments in Metro Manila, Philippines, let me know how I can help. 😄 I have various condominiums available for those looking for future rental income. 😉
Unfortunately, I'm not into that.
Gold is a God money... Crypto currency is a supreme to intelligent money that gives a real freedom.
Yeah, BTC is the real digital gold!
You can read a lot of literature on investment and capital increase, but without understanding market changes in practice, all this knowledge is useless. In other words, your article is no longer relevant, as we see that the cryptocurrency and real estate market is gradually beginning to collapse.
I was lucky because I consulted with Mortgage Advisor Nottingham and managed to choose the best option. When the inflation rate started to rise, it became easier for me to pay off the loan, which positively affected the speed of repayment.
It would be best if you always were careful when investing.
While there's a lot of literature on investment and capital increase, it's essential to understand how market changes work in practice; otherwise, the knowledge becomes useless. For example, the cryptocurrency and real estate market are currently experiencing a gradual decline, rendering previously relevant articles outdated.
In my personal experience, I consulted with Mortgage Advisor Birmingham and was fortunate to choose the best loan option. As inflation rates rose, it became easier for me to pay off the loan, positively impacting the repayment process. It's crucial to be cautious when investing and carefully consider all options before making any decisions. Morfinity also offers fee free mortgage advisor
Nice