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> And yet Bitcoin value continue to raise. If history repeats itself, we should see 1 Bitcoin levels at around $2,000. It's 2007 I have a house I bought for $3
by fleitz 13y ago
> And yet Bitcoin value continue to raise. If history repeats itself, we should see 1 Bitcoin levels at around $2,000.
It's 2007 I have a house I bought for $300,000 which is now worth $600,000, would you like to buy my house and in two years you will make another $600,000? If there's one thing about real estate in the last 10 years it's that it's proven all those naysayers like Shiller wrong.
- tslathrow 13y agoI'm not sure we've waiting long enough for Shiller to be proved correct. If monetary policy wasn't blowing the roof out on equity valuations, we'd be seeing mean-reversion as we should.
- saym 13y agoCan you elaborate on his prediction?
- tslathrow 13y agoI would suggest you read up a bit on Robert Shiller and CAPE
- fiatjaf 13y agoThanks for the elaboration and useful links.
- tslathrow 13y agoI assumed you could just look in any introductory finance textbook, but here: CAPE Formula: - Adjust each of the yearly earnings of the last 10 years for inflation. - Average the result of the step 1. - Divide the current price by the result of step 2. When I say yearly earnings I really mean trailing twelve months. Use TIPS etc to adjust for inflation. CAPE is mostly horseshit but basically it's designed to give a sense of over/undervaluation of risky assets It's about as awful as any other valuation metric though.
- cturner 13y agoWhat strange times we live in where a leisure boat can be talked about as investment!
- fiatjaf 13y agoIsn't money a valuable good? Buying goods and providing liquidity to them helps everyone. If you dig well it's the same thing as every other (things you would call) investment.