In The Current Markets, Is Bitcoin a Better Investment Than Gold Or Real Estate?

  • 5th Jan 2022
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In The Current Markets, Is Bitcoin a Better Investment Than Gold Or Real Estate?

Cryptocurrency is breathing fire in the world of investments and how

Although historically, real estate and Gold have been considered safe investments for people looking to diversify their portfolio. However, some economists argue that Bitcoin is a more attractive option due to the rapid growth of the cryptocurrency. Pros include ready access to your distributed digital ledger, decentralized data architecture, transparency guarantees, and low fees. The cons are largely dependent on which country you live in--as rules vary immensely from country-to-country.

Bitcoin is the new "hot" trading commodity these days and has been generating a lot of attention in the financial world. The traditional analysts and economists don't really know whether we should consider Bitcoin as a currency or an investment. While its price is determined by different markets and economic forces, it's also worth considering why people like to trade in Bitcoin.

What is Bitcoin and How Can I Invest?

Gold does not pay any income, shares dividend rate is low too. So, the average annual return for gold has hovered around 2%. But what many do not realize is that gold also has no explicit risk to the downside (unless inflation hits). If you take away the inflationary holding that could decrease real wealth, Gold is less volatile than stocks. This means that historically you are guaranteed to get returns higher than 2% even if there's economic crisis like recession, since stocks can go down which relate to recessions.

Why You Should Consider Investing in Bitcoin

Bitcoin is a much better alternative to owning gold. Gold has always been touted as a great investment because it doesn't lose value, but at best it only increases in value by 0-2% every day. Bitcoin might seem unstable in comparison, but it's really not. You can easily buy bitcoin in different quantities without paying too much of a premium if you use the right service . And unlike gold, there are no storage fees with Bitcoin investments.

5 Reasons You Should Invest in Bitcoin

Bitcoin has been a pretty hot commodity lately. In December 2017, the crypto-currency's value hit its all-time high of $19,000. Investors who got in early are now worth over $200 million. Bitcoin was designed to serve as electronic cash not backed by any government or authority. The purchasing power is determined solely by demand instead of what central banks want it at. Bitcoin is solidly backed with the blockchain technology that cannot be hacked like traditional currencies like India, China and Japan can due to their rigorous translations in the security systems in banking institutions. Bitcoin also possess greater liquidity since it's available online in contrast to gold or corporate assets typically in demand in international trade which may require the approval of international regulatory agencies.

Pros and Cons of Gold as an Investment

Bitcoin is not without its risks. Bitcoin exchanges can be hacked and Bitcoin accounts can be stolen, and it goes to the hacker if Bitcoin isn't kept carefully. You need to store it somewhere that has a private key you control. Bitcoin had an enormous high of $20,000 USD for 1 Bitcoin on December 17th, 2017 but has fallen drastically since then. Bitcoin's worth is still more than 3x as much as gold or whole countries like Greece or Slovakia, but some experts like Warren Buffet say Bitcoin doesn't make any sense as an investment because it tests lacks intrinsic value.

Pros and Cons of Investment in Real Estate

Real estate is definitely capital intensive. You are generally required to invest a lot of money before you can sell houses fast, or rent them. There is also no limit to the amount of money you can make as a landlord . One thing to remember is that you cannot put your tenants at risk by renting out properties with low roof structures. Real estate investment also generally take a sizable amount of time to get liquefied. Buying properties and then getting them ready for rent takes a lot of time, which can be physically and financially draining. You will have to get the legal documents in place before you can advertise your property for rent. However the one really big advantage that real estate offers is the fact that it is tangible and you can literally count on it. Real estate is something that gives you security and brings cash flow . Even though, documentation of the property will consume time, this allows for easier repossession should payment for the lease not be delivered; this is something that will not happen to us online. If we don’t get revenues from our online business and that is not making enough profit to sustain our projects, we will have to close it down.


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Author

Suhas Kataria

Founder and CEO of Realspace Assets LLP, a seasoned industry hand with hands on work experience of more than 15 years’ in real estate. He has also managed to put in place a highly organised core team consisting of deal makers, real estate marketing professionals, computer programmers, web ... read more


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