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Houses do generate income, called "rent". Either you rent out your property and get paid an explicit rent, or you live in the house in which case you get paid
by lottin 1y ago
Houses do generate income, called "rent". Either you rent out your property and get paid an explicit rent, or you live in the house in which case you get
paid in kind. So, bad example!
- tasuki 1y agoAgreed. How much future cash flow does a kilogram of gold generate? Gold has very little "intrinsic" (industrial) value. Most of its value is pure speculation. Would you say gold and bitcoin are rather similar then?
- lottin 1y agoLike bitcoin, gold is too a "bubble asset", but unlike bitcoin, gold is a physical object with use value and limited availability. The thing about gold is that its price appears to to be negatively correlated with the economic cycle. Because of this some people argue that it makes sense to include it in a portfolio of stocks and bonds, so that the volatility of the portfolio is reduced, although personally I would advise against it.