What is this bitcoin thing and why real estate is a better investment?
Bitcoin has surged over $13000 USD per coin, having risen an eye-popping 1,200 percent this year. That’s better than most investments available right now.
Real estate is a more stable investment compared to bitcoin. Here’s why:
- Bitcoin is a decentralised cryptocurrency. It can be hacked and you can lose your bitcoins if your computer is hacked. Recently the news reported that “Nearly $64m in bitcoin has been stolen by hackers who broke into Slovenian-based bitcoin mining marketplace NiceHash.”
- Real estate in a common law country generally can’t be confiscated. If you are named on the title, you are the legal owner. If the Crown wants to take your land, they have to compensate you.
- Real estate produces cash flow in the form of rents without you having to sell the property. With Bitcoins you have to exchange it to get USD.
- Real estate can be sold at auctions, private sale, negotiation. Bitcoins can only be sold at an exchange.
- You can add value to real estate by renovation, increasing rents, demolishing and rebuilding. Bitcoins don’t offer this value add ability – you are a price taker and take whatever price is set in the market.
- Real estate can be leveraged. Currently, very few banks are willing to finance your bitcoin investments.
That’s just a few reasons why real estate is better than bitcoins.