Real Estate & Bitcoin Investments: Which One Makes More Sense For You?

When it comes to real estate, there’s no question that property investment has been a fantastic way to make money over the years. After all, people will always need places to live, and no one is making new land. As profitable as property investment can be, however, cryptocurrency investments in things like Bitcoin seem to be on the rise, and this has led many investors to wonder where to put their money.

Even though real estate investing has a proven track record of success in a variety of market conditions, Bitcoin investors claim to have made huge gains virtually overnight, and many claim to have gone from rags to riches just by sitting at a computer. So, where should you put your money? Is real estate really the best option these days, or is Bitcoin the way of the future?

Well, It Depends

The answer to all questions about which investment is best for you is: it depends. It depends on your investment goals, your risk tolerance, the amount of time and resources you have to devote to investing, and much more. No two investors are the same, so there’s no way that one specific investment approach can be right for everyone.

The Pros and Cons of Real Estate Investing

Real estate is a proven investment that has performed well in all markets. The problem, however, is that real estate isn’t a liquid asset that can be offloaded at a moment’s notice. If the housing market is in a slump and you need to sell quickly, you’re might run into trouble. Also, holding real estate means maintenance and property taxes while you wait for better market conditions to come around.

On the other hand, real estate has experienced double-digit growth in terms of property value appreciation around the country in recent years. Homes for sale in Dallas, TX, for instance, have seen not only a rise in value recently, but potential buyers are offering competitive bids like never before. Real estate has also proven itself to be a safe investment during turbulent and uncertain times. This has been demonstrated through real estate’s positive performance during the Covid-19 pandemic.

The Pros and Cons of Bitcoin

Bitcoin and other cryptocurrencies are relatively new investment vehicles, so Bitcoin investment doesn’t carry the same track record as some traditional approaches. With this stated, Bitcoin has experienced tremendous growth in the last few years and depending on when you began investing, a substantial amount of money has been made in that time. Bitcoin is also unaffected by things like inflation since it is only available in a finite amount and can not be minted or printed like traditional currencies.

The big problem with Bitcoin, despite being more liquid in nature compared to real estate, is converting it to fiat currency or other types of investments. You could be a Bitcoin millionaire, but if you can’t quickly and easily convert your holdings to cash, your investment gains are just numbers on a screen. Additionally, investing in Bitcoin does require some tech-savvy and a large amount of power consumption if you plan to mine Bitcoin yourself.

Work With a Local Professional

Whether you choose to invest in real estate, cryptocurrency, or a mixture of both, you’re encouraged to partner with a local professional for guidance. This is particularly true for real estate since a local real estate professional will know your market and can provide advice and services tailored to navigate the intricacies of your region to get the best return on your investment.