RE: LeoThread 2025-01-02 19:12
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Assets aren't required to generate cash flow.
Currently, assets are being liquidated to provide cash flow.
For example, rental income represents a forced liquidation of the time value associated with real estate.
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In real estate, there's a necessity to liquidate a portion of assets monthly—renters pay for the property's use, and the property loses value over time.
The same principle applies to stocks.
The only advantage one can seek in RE over stocks or Bitcoin is that usually you can anticipate future cash flow as you (more or less) have a contract with an expected return by the counterparty. Risk involved, ofc.
Nice thread, Followed
Rather than focusing on innovation and investing in research and development, companies often distribute their earnings to shareholders.
Cash flow can inhibit the benefits of compounding.
A preference exists for capital gains over cash flow.
This allows the flexibility to sell assets at any time to generate cash flow when needed.
Bitcoin is ideally structured for this purpose.
hmmm...good information
It’s the only asset with time value inherently integrated, as it doesn’t deteriorate like stocks and real estate, which involve ongoing maintenance and repair costs.