Business

Why you should invest in Crypto (Bitcoin) instead of Real Estate and Gold

Published

3 years ago

September 21, 2021

Choosing between real estate, gold and bitcoin can be baffling, especially for the modern-day investor. Traditional investors will argue that real estate is the best form of investment because “land always appreciates”. A millennial investor will also say that bitcoin supersedes every other form of investment since it has yielded a massive ROI in just 12 years. However, like all types of investments, while people that just want to save will prefer gold, they all incur unique risks.

What Exactly Is Bitcoin?
Created in 2009 by an individual or group under the pseudonym Satoshi Nakamoto, Bitcoin is a form of digital currency or cryptocurrency. Just like any other currency, Bitcoin can be used to buy goods and services from merchants that accept Bitcoin payments. One Bitcoin can be subdivided into smaller units called satoshis, with one satoshi being 0.00000001 of a Bitcoin.

Bitcoins are created using a process called ‘mining’ which involves solving complex math puzzles. They are then stored in a digital wallet which could be in the cloud or on a user’s smartphone or computer. Users can save money, pay for goods, or send/receive Bitcoin from their wallets.

Real estate and bitcoin are on the watchlist of many new investors. Although all investments carry risk but performing extensive research and due diligence with the help of a business advisor will help you make good investment choices. Bearing this in mind, we will discuss some of the pros and cons of both investments that will help you decide to purchase BTC or invest in real estate

Real Estate Investment

Real estate investment is the purchasing of property with the intent of renting or selling it to make a profit. This is a multifaceted investment. You can flip homes, rent business space, be a residential landlord, rent out vacation property or open an Airbnb.

Real estate investing can help diversify your portfolio. Property is also a tangible investment; you can pull money from it and put value back into it. With a proper purchase and research, you can bring in money while putting value into a sellable asset. Additionally, owning property comes with tax breaks.

However, a great deal of effort is involved when it comes to real estate investment. Keeping up with property requires regular maintenance, upgrade and repairs. Owners need to collect rent and worry about utilities, not to mention that purchasing property can be pricey upfront.

Also, property is not an entirely fluid asset. Although you can sell property, it can sometimes be difficult to unload. It takes time to sell, and there’s a chance you might pour a lot of money into something that does not equal out. On the other hand, people need somewhere to live, so real estate will always be a necessity.

Now to the main reason you should choose crypto over real estate and gold

Although a fairly new invention, it is easier to venture into bitcoin investment than real estate. All you need to do is create a bitcoin wallet for free, buy some bitcoins and watch your ROI increase. Bitcoin is a global currency and can be purchased at any time from any part of the world through exchanges. The price of 1BTC is around $43,000, once reached all time high of 63,000 and analysts are predicting a $100,000 target before the end of 2021. That is a massive 55% ROI if the prediction is correct.

Regardless of the attractive ROI, over 90% of the world’s population cannot afford to buy 1BTC at this moment. Another advantage BTC has over real estate is that you can buy any unit of bitcoin. You can invest in bitcoin with as little as $1,000, unlike real estate where you need millions to buy a valuable property.

Some risks are also associated with bitcoin. The currency is digital, which makes it open to cyber attacks, especially when your wallet is hosted on an exchange. You can also lose your bitcoin holdings if you lose access to your wallet. Another major downside of bitcoin is its volatile nature.

The price can go up by 20% now and dump in the next few minutes by 30%. This is how volatile it is. Your portfolio can go down by over 50% and if you sell at that price you will be loosing but if you hold on you can still make over 300%, might take years but definitely. Bitcoin traders take advantage of this volatility to buy BTC at a low price and sell at a higher price, thus making profits from the price swing.

So if you have money you want to invest for the future the time is now for you to invest in crypto.

NOTE: This isn’t a financial advice, but just analysis from facts on ground