Real Estate vs Bitcoin: Which is Better for Investment?
Real Estate vs Bitcoin: Which is Better for Investment?
Choosing between these two investment opportunities can cause confusion. And what makes it even more difficult is the uncertainty brought about by the pandemic situation.
For a long time, real estate investing has been one of the best ways to make money around the world. Andrew Carnegie says that about 90% of all rich people become rich through real estate.
Before we talk about which form is best for investment, it is important to understand what Bitcoin is and how it works.
So what is Bitcoin?
Created in 2009 by Satoshi Nakamoto, Bitcoin is a form of digital cryptocurrency. Like any other currency, Bitcoin can be used to purchase goods and services from merchants that accept Bitcoin payments.
Bitcoins are created using a process called 'mining' which involves solving complex math puzzles. They are then stored in a digital wallet which can be in the cloud or on a user's smartphone or computer.
Here are some of the basic features of Bitcoin:
Decentralization - Conventional currencies such as Yen, Dollar and Euro are controlled and regulated by central banks. Bitcoin, on the other hand, is not controlled by any single institution.
Anonymity - Financial institutions know almost everything about their customers; phone numbers, credit history, spending habits, etc. With Bitcoin, people can transact without revealing their identity.
Transparency - All Bitcoin transactions are permanently stored on the Blockchain which is transparent to the public.
Investing in Bitcoin is becoming famous for several reasons:
Small barriers to investment - As mentioned earlier, a Bitcoin can be divided into smaller units. This means you can start buying Bitcoins with as little as $100.
Rising Value - As interest in Bitcoin grows, more individual and institutional investors are rushing to participate. It is predicted that the price of a Bitcoin will exceed $100,000 in a few years.
Stability - Being the first cryptocurrency, Bitcoin has proven to be a reliable and safe investment.
But here's why real estate investing is the best way to invest in 2021:
Tangible asset value - Real estate investments are supported by physical structures or land.
Cashflow - Investing in rental properties (traditional or Airbnb) allows you to enjoy cash flow through monthly income.
Inflation Protection - Home values and rents usually increase in direct proportion to inflation.
Tax benefits - Real estate investors are entitled to tax deductions such as depreciation, taxes, insurance, repairs, commissions and utilities.
In conclusion...
Real Estate vs. Bitcoin: Which is the Better Option?
Bitcoin is a controversial asset, with rewards but also tremendous risks. If you decide to invest here, do it with the utmost care!
And yet, real estate is generally the best investment. The good thing is that you can buy real estate with Bitcoin and thus combine these two forms of investment for a fruitful result.
