Bitcoin vs Real Estate: Which Investment is Better?

Bitcoin vs Real Estate: Which Investment is Better?

Can’t decide between investing in real estate versus Bitcoin? Let’s compare both asset classes to see which one is the better investment over the long run.

Bitcoin vs Real Estate Overview

Bitcoin Real Estate
Founded20096,000+ Years Ago
Taxed on Capital Gains?YesYes
Liquidity LevelHighLow
Cyber Attack RiskYesNo
Decentralized?YesNo
Volalitity LevelHighLow

Annual Returns

Bitcoin surpasses real estate in terms of annual returns over the last decade by a long shot.

According to CaseBitcoin, Bitcoin returned197% on average over the last 10 years.

According to Bankrate, United States real estate returns around 10% on average annually.

Bitcoin will provide hypergrowth for your investment portfolio while real estate provides safety and stability. It’s not too late to Buy Bitcoin either because future Bitcoin halving events will continue increasing the value of BTC in the future.

Liquidity

Bitcoin is far more liquid than real estate because you can buy and sell Bitcoin at any time during the day. Sign up for Coinbase and you can trade crypto as long as you have an internet connection.

Real estate, however, is fairly illiquid and requires lots of paperwork and financing to close a deal. Some houses or condos may sit on the real estate market for months waiting for a buyer.

Safety

Bitcoin is the most popular cryptocurrency but it is susceptible to many scams including hacks, phishing emails, and stolen private keys. Once your Bitcoin is lost or stolen, it can be extremely difficult to recover it.

Real estate is more secure and doesn’t have the same cybersecurity risks like Bitcoin does. It’s highly unlikely you can lose real estate if you deal with reputable brokers, agents, buyers and/or sellers.

Risks

Bitcoin’s biggest risk is getting replaced by a better, faster digital monetary network in the future that makes BTC obsolete. If Bitcoin HODLers dump their BTC and move onto to other asset then it could cause the price of Bitcoin to crash in a hurry.

Real estate is safer but carries other risks such as potential loss of your investment due to bankruptcy, divorce, natural disaster, or fire.

Final Verdict

Both asset classes are wonderful however I think it makes sense to dabble in both for the best long term gains.

However, several real estate investors have sold their homes to buy more Bitcoin!

An ideal scenario for myself would be to own my house outright and hold my savings in Bitcoin. Paying off your mortgage saves a ton of money that can be reinvested in Bitcoin or other asset classes.

If Bitcoin soars to $1 million then a lot of Bitcoiners can retire early and do whatever they want!

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