Bitcoin vs. Real Estate: Where to Invest?

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Bitcoin and cryptocurrency as a whole have grown tremendously well over the last three years, earning the attention and admiration of many serial investors from across the world. Real estate, on the other hand, has been a sound investment option for hundreds of years and has been used as a benchmark for other ventures for decades.

In order to get the clearest insights on Bitcoin, therefore, we need to compare it with the real estate industry in terms of return on investment, long-term reliability, and flexibility among other factors. Please read on to understand the financial landscape of Bitcoin vs. real estate.

Growth prospects

The real estate industry involves developing the God-given earth and making money out of it. Although the options are many including high-rise condos, golf courses, hotels, residential homes, and other investment opportunities, one fact is undeniable: Land doesn’t expand. And with global warming threatening to make much of Earth uninhabitable, things are not looking as good in this sector as in prior years.

Bitcoin, on the other hand, has infinite future opportunities. It is promising to be the future, particularly because it is not limited by any physical or location barriers. Cryptocurrency as a whole is a digital ledger and that makes it golden for this digital age and the future.

Future market

Real estate thrives mostly because of the basic necessity gap it fills in the lives of every living soul. Investing in a rental property means that your future market is under lock and key; people will always rent your space because they cannot live without proper shelter. Buying a home for your family guarantees you a stable future where you will not need to pay rent. Developing land for farming means that you will find a ready market for your farm produce because man must eat. Bottom line: Real estate has been a necessity in life and will always be.

Bitcoin, on the other hand, may not be as reliable even with its current surge. Humanity has survived for many years without crypto and will be safe in the future with or without this digital ledger. Nobody can predict for sure that this trade will stand the test of time because, as we have seen in other upcoming digital markets, anything can be easily replaced.

Flexibility

Land could be physically limited but not potentially limited. There are many things that you can do to add value to your real estate. If you buy an empty piece of land and start renting it out, it would only be a matter of time until you raise enough capital for a nice rental house. And if the rental income from the house isn’t enough, you can always repurpose your piece of land for a more beneficial course.

Bitcoin is nothing like that: Your future depends on the dynamism of the blockchain technology that defines the market trends in the crypto business. You do not have control of what happens to your investment now or in the future.

For what it is worth, you can never be entirely sure that your investment will not become worthless or obsolete by the end of the day.

Retirement planning

Bitcoin could be promising higher returns than real estate, but it would be naïve to bank on it for your retirement planning. As we have seen, the uncertainty surrounding crypto makes it unreliable for senior citizens who want a continuous, reliable income flow that doesn’t require them to be hands-on or to think too much.

Real estate has for a long time been a great retirement cushion for many people. The risk isn’t as huge and the rent will always be trickling in no matter how little.

Taxation

Buying a home has many tax benefits including not paying an income tax at the corporate level, freedom to expense mortgage interest, and if you are a shareholder in a real estate entity, you are entitled to significant tax relief for your dividend income. As for Bitcoin, most governments around the world will tax every little gain you make and will not give you any relief for whatever reason.

Bottom line

Bitcoin is a great investment opportunity for young people who can afford to take huge risks, but real estate is still unbeatable in terms of reliability and future growth.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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