BY: STEVEN SANDERS, Toronto homeowner
The short sighted, short term investing that has led to bitcoin value rapidly rising is bad for the economy, and I know a bunch about money because my Toronto house has doubled in value in the last 10 years.
There is simply no way bitcoins are worth what people are paying for them. You should invest in something that has intrinsic value, like the 1.6 million dollars my two bedroom one bath semi detached is intrinsically worth.
I hear that some people are even buying equipment so that they can ‘mine’ bitcoins. That is a stupid idea. The only sound investment is buying lots and lots of pre construction condos. I currently have 15 mortgages to pay for 13 different condos. Based on the current market they should each appreciate in value by 60% before they are completed.
You might wonder why I feel so comfortable sharing my opinions on cryptocurrency when I have never bought, sold or used cryptocurrency and I only spent 3 minutes skimming a Toronto Sun article on the topic. But when you add that time to the 3 hours hours I spent reading about about real estate before deciding to buy a house I practically have a PhD in economics.
I understand the appeal of bitcoin. It’s so tempting to buy something that will magically increase in worth so you can sell it for a large profit. Unfortunately this isn’t a realistic approach to investing. People should be calm, rational and avoid bubbles, like I have by investing in Toronto real estate. If something sounds too good to be true it probably is, unless it is the Toronto housing market in which case it’s fast rise will never ever stop.
In conclusion Bitcoin is made up bullshit as opposed to other currencies that were not invented by man but rather have existed forever.