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Bitcoinmagazine
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98
Bitcoin or University: Which Investment Yields Greater Financial Freedom?
- A university education is often considered to be the best path to superior lifetime earnings and financial freedom.
- Bitcoin is also an excellent investment, with a 71% average compound annual growth rate (CAGR) over the past ten years.
- Valuing university education: The price of a university education has vastly outpaced inflation, with tuition going up more than 250% in inflation-adjusted dollars in the past 40 years and 830% in nominal terms, leading many parents to question the investment.
- Even the 75% college wage premium is misleading.
- Valuing bitcoin investment: Bitcoin represents an entirely new asset class — a digital asset whose supply remains absolutely scarce regardless of demand.
- As the world adds bitcoin to their holdings, absolute scarcity means the price of bitcoin can only trend up in the long term and has exceeded every other common asset class in 11 out of 14 years.
- Even in the Saylor bear case (21% CAGR), investing tuition money and the first four years of income in bitcoin far outperforms the college wage premium over a career.
- If we define financial freedom as having $5M in bitcoin savings, that is achieved in 20 years for the non-college path and in 25 years for the college route.
- This analysis narrowly focuses on the financial payoff of a capital investment.
- It doesn’t consider personal satisfaction derived from the alternative paths, motivation, the networking benefits of a university, the personal growth experience of a university vs. working directly from high school, and many other factors.
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