TSLA VS BTC
👉 Both are down big 👉 Macro is a hellscape 👉 Interest rates rising 👉 Recession coming
So, what's the difference 🤔?
👉 A LOT
1/ Stocks vs Crypto
What's the difference?
In the 1st principles or axiomatic sense, Stocks are equity in a business that's producing either services or products. So, when you own a stock, you own that business and part of its profits as well.
Crypto on the other hand...
...is essentially a store of value. Or, that's what BTC maximalists have evolved to calling it, from a currency to now, a store of value.
But is it inflation proof?
Let's compare it to the US dollar.
The argument is inflation erodes the dollar but here's a chart.
3/ What about protection against an economic crash or recession?
Here's another chart.
BTC vs the stock market.
The Reality is, when people are hit hard, the 1st to go are their Cryptos.
👉 BTC has not been able to protect you from an economic downturn.
4/ but, TSLA has fallen too.
So, what's the difference?
The value of a company like Tesla is really just a multiple of its annual profits.
In an economic downturn, stocks may crash but if you hold on to them, they will come roaring back...
Tesla is a...
5/ 💰 Cashflow
TESLA is a cashflow generating machine. It makes money every year. Granted if the recession is truly awful, it may need to survive thru it.
But once the economy recovers, it's back to making money 💰 🤑
6/ Owning a business
When you own Tesla stocks, you essentially are part owner. And you get paid part of the profits in either the form of dividends or share buybacks.
So, it's like owning a passive income stream.
The value will always revert to it's true earnings potential.
7/ Crypto again
Back to crypto. In it's most basic term, it's intrinsic value is based on demand. And this makes it a ponzi scheme.
Not a scam, but a ponzi like structure.
There is no value unless there are more buyers than sellers.
And this can change overnight.
8/ Long Term Investment
My advice is to choose to invest your money into companies you have long term conviction in.
My own thesis on Tesla is solid. It'll be generating massive amounts of profits in 2030.
👉 Cash is King
And therefore, companies making bank is 🤴 king.
TSLA vs BTC
Which do you prefer to invest your hard earned money in?This post is based on this twitter thread.