Last year you should have put your money in cars, at least in America
The crypto market and the car market have many similarities. Not only because people like to put their newfound riches in shiny cans or because the Tesla boss is also involved in crypto, but also because the two influence each other. The chip shortage that is driving demand for used cars is also partly caused by people who mine cryptos, according to some experts. The semiconductors are also used in the equipment of miners.
Jim Bianco of Bianco Research also likes to draw a comparison between the two worlds. He thinks cars were a better investment than bitcoin in 2021. “If you want to know what was probably the best investment in 2021, it’s the car in your driveway or garage,” says Bianco in return for CNBC. According to him, the value of cars is rising faster than the value of stocks and also faster than many cryptocurrencies.
Cars better investment than bitcoin: the price is rising faster
‘In the past four months they have been [auto’s] increased in price by more than 20 percent. That’s not just more than the S&P [de aandelenindex van de VS], but that is also more than bitcoin,” he says. “As of December 15, based on the last set of data we have, they will be [de autoprijzen] now just higher and higher. In any case, there is no peak at the moment.’ Of course, Bianco looks at the US second-hand market, which is a lot more overheated than here.
The prices of used cars are also rising sharply in the Netherlands. Factories around the world are running less production because of the chip shortage. Because new cars cannot be delivered (on time), many people opt for a second-hand car. The demand for used cars is increasing and so is the price. Try to find a Mazda MX-5 or an old BMW 3-series for a nice price. Which cars should novice drivers drive their rear wheels on curbs to pieces?
#Cars #investment #bitcoins #cryptocurrencies