The bitcoin and real estate are now two major highlights of the investment market. For those who want to start in these segments, it can be difficult to discern which option is best. Both have benefits and like all investments, present their risks.
If you are considering these assets and want to select the option that best suits you, let’s examine the pros and cons of each investment. Before making any investment decision, remember to consult your financial advisor.
What are the advantages of investing in the real estate market?
Real estate investment is multifaceted. It foresees the purchase of real estate with the intention of renting or selling them for profit. In this way, you can switch homes, rent a business space, be a home owner, rent a holiday property, or open an Airbnb.
Real estate investment allows a diversified portfolio. The property is also a tangible investment; you can extract money and return value to it. With a proper survey and acquisition, you can get money while placing value on a saleable asset.
In addition, owning property has tax incentives. However, a great effort is involved when it comes to real estate investment. Keeping up to date with properties requires regular maintenance, updating, and repairs. Owners need to receive the rents and worry about public services, not to mention that buying real estate can be laborious.
Another issue is that real estate is not a fully fluid asset. So while it is possible to make profitable transactions, it often takes time to sell, and there is a chance you will spend a lot of money on these transactions. On the other hand, people need a place to live, so the real estate sector will always be a necessity.
Is bitcoin more worthwhile than real estate?
The cryptocurrencies, whose most popular option is the bitcoin, is one of the newest investment options available. These digital assets act as a means of global trading as an alternative to money.
A great benefit of the bitcoin investment is that the currency can never be inflated, as there will always be a limited number of bitcoins available. Besides, the process of buying and selling the currency is simple and does not require great efforts. Transactions are marked on the blockchain, available to the public, and the bitcoin is currently in high demand.
However, as greater as these advantages are, there are some risk factors. As the bitcoin is an intangible asset, there is plenty of room for errors in exchanges. The currency is entirely digital, which opens the possibility to cyber attacks, and security is not rigid. Also, although there are only a limited number of bitcoins, there are many other types of cryptocurrencies available that can inflate the market.
Additionally, as this resource is quite new, there is not enough data to actually calculate its value. As recent price fluctuations have shown, the market is volatile. You can easily lose everything that you’d invested. Therefore, the decision to engage or not with the bitcoin really boils down to how much you are willing to risk.
So now what? Will you choose the bitcoin or real estate?