Bitcoin or Real Estate: Which Is The Better Investment?
Cryptocurrencies have taken off as speculative instruments in recent years. Many people now use them as an investment vehicle, but how does it stack up to traditional real estate? That is a question, and that can only be answered with another question. What is your tolerance for risk? The massive printing effort by the Federal Reserve is one of the many reasons why cryptocurrencies have gotten so popular in recent years. Bitcoin's value will largely depend on this printing. Whether bitcoin is a better investment than real estate will depend on what the Federal Reserve is currently doing.
Why Go With Real Estate?
Real estate means owning physical properties in some area. It is one of the best assets you can own, as there are many tax advantages that it confers on to the owners. Many people rent out their property to a few tenants. It usually brings in a steady revenue stream month after month. However, being that it is a physical asset, it brings many other problems as well.
The main problem that real estate brings is that you need to spend a lot of time and effort maintaining your property. You're also at the mercy of the market for your property value. On top of that, you need to pay property tax on your real estate holdings, which can slowly drain your profits. However, maintenance is still the major problem that will cause issues for investors.
The beautiful thing is that real estate offers multiple ways of purchasing and profiting from properties. For example, you can buy a dilapidated home and fix it up for sale. There are many homes for sale in Long Beach that could potentially fit that category.
Is Bitcoin the Answer?
Bitcoin is the world's most famous cryptocurrency. While it is used as an investment vehicle by some, it can also be used as a medium of exchange. One of the biggest benefits of bitcoin is how fast its value can increase. However, the downside to this is that its value can also sink quickly. There's also the issue of people looking to cryptocurrencies when the Federal Reserve starts printing more money.
However, bitcoin does have some key advantages. The first one is that it doesn't have inflation. It is also not a physical resource, so you can easily transport it anywhere in the world. However, it has a major downside of being highly risky.
Which One Comes Out On Top?
The reality is that you should have a diversified portfolio when it comes to investing. However, which one should you choose? Government regulations will slowly stifle out cryptocurrencies, which is why you should go with real estate as the foundation of your investment portfolio. However, cryptocurrencies might be much better for you if you are more mobile. If you don't want to be tied down to one single area, you might be better off putting your money into cryptocurrencies like bitcoin.