Should visitors see all the links and buttons (which can be used only by registered users)?

We are developing a website which requires registration to use some features.

My friend thinks visitors (non-registered users) should not even see the links for those features, because it is confusing.

I think they should see the links and upon clicking they should be redirected to login/registration page, because it will encourage them to register.

What is the best way to handle this?