Crypto vs. Real Estate: Which is Best Investment?

Due to its decentralized nature, cryptocurrency isn’t the same as traditional currency as no single entity can regulate or control it. Cryptocurrency transfers are done through a series of computers that are connected privately, sharing a ledger. With every transfer, it is shared publicly by blockchain. Since the number of bitcoins circulating is limited at a certain period, there is no way the government can print more. This is what makes cryptocurrency resistant to inflation and therefore makes people so interested in investing.

Secondly, cryptocurrency has a low entry barrier which makes it convenient for investors. A full Bitcoin may cost something around $30000 or $40000. However, investors have the option of purchasing smaller units representing a tiny fraction of the Bitcoin. As of today, you purchase 2700 Satoshi by paying a dollar. You can purchase a full coin for even lesser prices from other altcoins such as Ethereum. The cost of its full coin is close to $2300.


The biggest upside of cryptocurrency is the potentially exponential gain that you’re promised post-investment. The value of Bitcoin in the last 5 years has grown up to almost 6000 percent. In April 2021, that figure was around 9000 percent. Other cryptocurrencies have registered returns ranging more than 1000 percent in the last few years. More importantly, institutions have started showing interest in cryptocurrency investment. For example, JP Morgan announced recently that it is going to allow access to retail crypto funds and will be the first big bank to do so. Estimates suggest that the price of Bitcoin will shoot up to $100000 in the future. It might just replace traditional currency like the dollar and the Euro.

Things to Keep in Mind while Trading Crypto

The aforementioned points may have piqued the interest of investors. However, before you jump to any conclusion, you should take a look at certain limitations of the Bitcoin investment as well.

Bitcoin is not tangible and only exists on the internet. As a result, it is prone to cyberattacks and other kinds of cybercrimes that can impact your investment negatively. Due to this lack of transparency, determining the value of a coin becomes difficult. Therefore, investors are always afraid of making a move as they might end up losing all their money. The only way you can make money for sure is through capital appreciation which corresponds to the increase in value of an asset.

Cryptocurrency such as Bitcoin is highly volatile. The value of Bitcoin at the time of writing this article might not be the same when you’ll be reading about it. Also, most governments do not endorse Bitcoins and other cryptocurrencies. It is however expected that agencies like the IRS can end up regulating the sale and purchase of Bitcoin, which might eventually lead to a decrease in its value.

Benefits of Real Estate

Since the comparison is between Crypto and Real Estate, understanding the other side is equally necessary. Unlike Bitcoin, real estate is tangible and has an intrinsic value. While investing you also get to enforce appreciation for the asset. You have the option of making strategic improvements that can increase the value of the property in question.

Additionally, real estate provides a steady income flow that can be used to pay all the expenses. This includes rents used for covering the mortgage payment. Most importantly, real estate investment provides you with tax breaks and other kinds of deductions. This makes the overall venture even more profitable.

Drawbacks of Real Estate

The assets used in real estate investment are not as liquid as vehicles of investment. You can buy a stock any time and sell it off as well. The same isn’t applicable for real estate. By the time you find an appropriate buyer, several months may have passed. In other words, real estate is a more time-consuming affair than other kinds of investment.

It is also expensive as you have to spend a lot for purchasing a building, which in turn creates a huge roadblock. Once you purchase a building, it becomes your responsibility completely to maintain the building. You may have to introduce expensive replacements such as the HVAC unit or the entire roof. Real estate that costs less, such as wholesale, have their own challenges.

Final Verdict

Based on the information above, it seems that real estate is a better option than Bitcoin. At the same time, if you don’t mind taking risks, Bitcoin is your thing. Even though, Bitcoin seems to be prone to cyberattacks, virtually any kind of investment is. It is up to you to ensure that the networks have been secured properly so that no one can hack into your system. The drawbacks of real estate listed above are specifically those that Bitcoin and other cryptocurrencies don’t have to deal with. What is advised, however, is that you don’t focus on one kind of investment solely. Keeping a certain amount for real estate will ensure that your portfolio is diversified. It’s high time you start investing using the Auto-Trading App.

Ranbeer Maver is a Computer Science undergraduate. He's a geek who embraces any new consumer technology with inhuman enthusiasm.