Bitcoin vs Real Estate in the coming years

25 Replies

So... I have been following the Bitcoin-market since the bullrun when I lost a for me substantial amount of money. 

Since then i have also realised that cryptocurrencies and stocks can be traded with the help of technical analysis. Yes I know, some people dismiss it before they read the whole sentence. And some people surely will dismiss anything related to cryptocurrencies without having much knowledge about the matter. 

Anyway. I think it is time to talk about Bitcoin vs Real Estate, the way the markets are right now. If we stand in front of a stock-decline, what then with real estate? And what with Bitcoin? 

I personally think Bitcoin will do good the coming years so I'm actually contemplating selling some real estate to buy Bitcoin. 

Anyone else have the same thought? Am I crazy to think like this? Clearly a bit crazy but since I don't have family-obligations maybe this is the time to take the leap. 

Your couple of posts seem really into Bitcoin. You might be "really excited about Bitcoin". It is one of the original Cyrpto currencies. The thing is there are hundreds of Cyrpto Currencies. It isn't difficult to make them. There are many with backing of companies and even governments behind them. Many others have failed. 

Since it's highs of 2016 and 2017 it has dropped dramatically in value. There are few places that take it as a currency. It is at this point a commodity with the majority of ownership in the hands of the wealthy. If there is a recession it MIGHT go up in value. Gold and silver are commodities that also might go up in value. According to market valuations you're still buying at a high. It is a risk.

Selling property with a big tax hit to buy a volatile commodity that looks to be in a decline is a big risk. You can do whatever you want. 

@Vidar K.

I’m not huge into cryptocurrencies but I love the idea of blockchain. I hope it takes over my industry and we all have to learn transactions digitally. I’ll tell you, brokers and agents aren’t prepared for that big of a change.

It's definitely risky...! But there is no doubt about the need for a decentralized currency. No money-printing, can be used by whoever holds it. Can't be frozen by governments etc.

If we look at markets in general they usually ebb and flow, it either trends or fluctuates between values. I believe Bitcoin is near the low of a downwards trend and that it has turned. It's going back down, sure, within some months, but I think we're over the worst decline. 

Crypto is considered a commodity now, but the verdict is still out on what it can really compare to is it most like gold, store of value? Or is it a currency like USD, just without the risk of inflation? Or is it the beginning of something completely different? A new asset-class? I'm pretty sure it's the last one, many of the worlds most intelligent people go to crypto. Why would the most intelligent of us go to some nonsense currency without future value? 

I talk about Bitcoin because it is the first mover and everything else in the space is measured against Bitcoin. Bitcoin has been proven to be secure and in it for the long run. I was once a naysayer who believed Bitcoin was scam and had no value. My mind has changed. 

The tech is perfect for real-estate (was a broker for a few years myself), but half the industry may disappear when blockchain is mature enough for title-transfers etc. 

I personally believe it is the opportunity of a life-time. The tech has been proven, institutions on the move. Unless the big guys decide to keep crypto down because it could ba e threat to the rest of the economy, chances are they will push the price up to the levels where institutions can play like they normally do. At the current market-cap Bitcoin etc is too small. But it's the perfect asset-class for manipulation (which happens in all markets). 

Hope for more discussion!

@Vidar K. I will be doing the opposite, will sell Cryptos to buy Real Estate on the next bull run. I think we are heading bull market now. Look other coins too like Cardano and XRP huge potential there. I would say top 10-15 is worth to take a look at it. Litecoin should see a spike too because of the halving happening soon.

@Vidar K.

Bitcoin will never outperform

real estate. If Bitcoin is around in 20

years I will be surprised. The concept

is great but the federal

government just has to create its own federally backed cryptocurrency and cryptocurrency is done.

https://www.chicagotribune.com/business/ct-biz-quadrigacx-cryptocurrency-passwords-20190205-story.html

There is a new cryptocurrency everyday and like the early 1900s when each bank in a state got to print their own money unregulated currencies fail.

Originally posted by @Charles Kao :

@Vidar K.

Bitcoin will never outperform

real estate. If Bitcoin is around in 20

years I will be surprised. The concept

is great but the federal

government just has to create its own federally backed cryptocurrency and cryptocurrency is done.

https://www.chicagotribune.com/business/ct-biz-qua...

There is a new cryptocurrency everyday and like the early 1900s when each bank in a state got to print their own money unregulated currencies fail.

Bitcoin will never outperform real estate? It already has! If you bought in 2015 and held through 2017 then you got better returns than any real estate investor could ever dream. Same can be said for the period from December 2011 through 2013.

I'm not going to suggest that cryptocurrencies are the best investment for everyone. To be real, the market is in a state similar to gold, in that people purchase hoping the value will rise to sell it to someone later at a higher price. That said, Bitcoin (and crypto in general) has outperformed real estate numerous times, even through the amazing Real Estate bull run we've seen. It has, of course, also seen devastating drops that are never seen in real estate. 

In addition, there are a number of currencies working on concepts that provide passive income (such as master nodes). There are a lot of interesting things happening in this space, and to write off the entire market is foolish. It appears similar to when when dot com companies were all the rage. Yes, most failed. However, incredible innovations came from that space, and if you were one of the lucky that paid enough attention to separate the wheat from the chaff then you made a lot of money. Same opportunity is presenting itself in crypto. 

And no, killing crypto is not as easy as the Fed creating their own coin. That may kill some coins in the space, but it certainly will not kill all. Many people seem to think that every cryptocurrency is just a copy of Bitcoin, or that they are all trying to accomplish the same goal. This couldn't be farther from the truth. If the Fed came out with a "Bitcoin Killer" they would be squashing only one section of the ever growing crypto marketplace. 

Originally posted by @Jack Medford :
Originally posted by @Charles Kao:

@Vidar K.

Bitcoin will never outperform

real estate. If Bitcoin is around in 20

years I will be surprised. The concept

is great but the federal

government just has to create its own federally backed cryptocurrency and cryptocurrency is done.

https://www.chicagotribune.com/business/ct-biz-qua...

There is a new cryptocurrency everyday and like the early 1900s when each bank in a state got to print their own money unregulated currencies fail.

Bitcoin will never outperform real estate? It already has! If you bought in 2015 and held through 2017 then you got better returns than any real estate investor could ever dream. Same can be said for the period from December 2011 through 2013.

I'm not going to suggest that cryptocurrencies are the best investment for everyone. To be real, the market is in a state similar to gold, in that people purchase hoping the value will rise to sell it to someone later at a higher price. That said, Bitcoin (and crypto in general) has outperformed real estate numerous times, even through the amazing Real Estate bull run we've seen. It has, of course, also seen devastating drops that are never seen in real estate. 

In addition, there are a number of currencies working on concepts that provide passive income (such as master nodes). There are a lot of interesting things happening in this space, and to write off the entire market is foolish. It appears similar to when when dot com companies were all the rage. Yes, most failed. However, incredible innovations came from that space, and if you were one of the lucky that paid enough attention to separate the wheat from the chaff then you made a lot of money. Same opportunity is presenting itself in crypto. 

And no, killing crypto is not as easy as the Fed creating their own coin. That may kill some coins in the space, but it certainly will not kill all. Many people seem to think that every cryptocurrency is just a copy of Bitcoin, or that they are all trying to accomplish the same goal. This couldn't be farther from the truth. If the Fed came out with a "Bitcoin Killer" they would be squashing only one section of the ever growing crypto marketplace. 

 Jack to be fair here.  You can't just block out a time period of the market and say bitcoin outperforms Real Estate from 2015-2017.  How about Dec 2017- to now?  $20k down to $5k.  Any real trader and investor know you cant just block out periods of time.  Hindsight is always 20/20. 

I like blockchain and think this is certainly a technology of the future, but I am old school.  I like something tangible and I like owning necessities in life.  I know 100% of people will need shelter today and 50yrs from now.  I have no idea if bitcoin will be here 50yrs from now.  

Id rather buy Shrute Bucks and Stanley Nickels.

I have a few clients that bought this stuff. The value went up by 6 times the investment and then down to 3 times the initial investment. They wish they had sold off now but are holding longer term and see what happens.

I do not fully understand the stuff and I do not really want to.

I think there are a lot of generations that will not want to adapt to using it that are old school. When new technology comes out it has to stick and then can take decades to have a larger shift in consumer use patterns.

I know clients that are worth tens of millions to hundreds of millions and made it in real estate. I am sticking with what I know and love which is real estate.

@Vidar K. The reason I’m not thrilled about bitcoin is it has a huge liquidity issue. I may be wrong but I don’t think it can even be halted on a sell off. So you get a bad event like a major hack of a broker and you could wake up to a major loss. This become worse with alt coins as they have even less liquidity because I believe you have to transfer to bitcoin right away. Also technical analysis of crypto is sketchy at best and there is no fundamentals to go off of like p/e. I’d focus on companies that excel in blockchain and are at least mid cap. Could always make a play at Amd or Nvidia too if you feel crypto runs. Me I’m short almost everything in the market. I’m long a few oversold biotech with trailing stops.

@Jack Medford @Frank Wong

Frank is exactly correct, you are assuming you invested at the right time for those gains with hindsight. If you invested in BitCoin during that period of time you could have lost half your money. Its volatile because its a sentiment driven commodity not fundamentally driven.

@Frank Wong I was just pointing out that saying "Bitcoin will never outperform Real Estate" is a false statement. Don't like blocking out periods of time? Ok, that's fine. How has Bitcoin performed since inception? Outperformed Real Estate (and every other major investment option). 

Please keep in mind, I am not at all suggesting everyone should drop their other investments and throw everything into Bitcoin/crypto. However, I do think it should have a small place in the portfolio of those willing to take the time to learn the industry. It is a high risk high reward play to be sure. 

@Vidar K. The problem with cryptocurrency is that there is no confidence in its value. Decentralized currency is a long term loser, because governments wont allow it, and they have the resources to squash it.

The US has the ability to print, literally, an unlimited amount of money, with actual value.

Cryptocurrency will never be able to keep pace.

It's a fad....

@Vidar K.

My personal feelings on the matter of crypto currencies are this:

I believe crypto currencies have a lot of potential to replace traditional currencies. Also, it has been shown that people can invest in crypto currencies and make significant sums of money (They can also lose all of their investment).

All that being said, I would still prefer to invest in Real Estate. The simple reason for that is because if I own a quality rental, someone will pay me whatever is valuable at the time so they can live there. Whether that is dollar bills or crypto currencies, I'll be able to spend what they pay me to live my life. Thus minimizing the risk of being left with dead currency.

Basically if you view Real Estate as a currency of it's own, I'd say it's one of the safest bets.

To me Crypto currency is like buying a stock in a company that has never shown any profits. 

@Ned Carey , I'm trying to decide if that means you're for or against crypto? Makes it sound like a really great investment when you think about how Silicon Valley was built!

Originally posted by @Jason D. :

@Vidar K. The problem with cryptocurrency is that there is no confidence in its value. Decentralized currency is a long term loser, because governments wont allow it, and they have the resources to squash it.

The US has the ability to print, literally, an unlimited amount of money, with actual value.

Cryptocurrency will never be able to keep pace.

It's a fad....

 Your Comment: "The US has the ability to print, literally, an unlimited amount of money, with actual value."

Did you mean like Zimbabwe or like Venezuela?

@Mike M. I'm not aware if Zimbabwe is monetarily sovereign, I would suspect not. I do know that Venezuela is not so no, not like Venezuela at all....

Not sure what your statement has to do with bitcoin....

Originally posted by @Jason D. :

@Mike M. I'm not aware if Zimbabwe is monetarily sovereign, I would suspect not. I do know that Venezuela is not so no, not like Venezuela at all....

Not sure what your statement has to do with bitcoin....

 It isn't about Bitcoin, it's about Your Comment: "The US has the ability to print, literally, an unlimited amount of money, with actual value."

Obviously you are either unschooled in economics, or have unrealistic exuberance about the dollar and the ability of the government to contain it or haven't been around long enough to experience inflation (I have been around that long).

In any case, the approach that printing money is the solution and that it has "actual value" is dangerous to your financial future. But then, as it is said "Experience is the Only Cure"

Experience Is The Only Cure: "There's A Decent Chance You've Never Seen A Bear Market"

What is concerning is the rather cavalier attitude the mainstream media takes about bear markets... “Sure, a correction will eventually come, but that is just part of the deal.”

@Mike M. You must have bigger pockets confused with facebook...

I havent made any opinion on the economic impact of printing money, all I did was state a fact. And the fact is that the dollar has value because the world has faith in the US economy, cryptocurrency has no such economic stability.

I'm not really concerned with your opinion on the value of the dollar.

Originally posted by @Jason D. :

@Mike M. You must have bigger pockets confused with facebook...

I havent made any opinion on the economic impact of printing money, all I did was state a fact. And the fact is that the dollar has value because the world has faith in the US economy, cryptocurrency has no such economic stability.

I'm not really concerned with your opinion on the value of the dollar.

 It was your comment not mine. I question your understanding of what a "Fact" is. Lol

@Vidar K. why would Bitcoin go up when stock markets go down (and take everything else with them usually)? If I had a nickel for every time I was told "Bitcoin went down, but it hit its bottom and is going to go back up from here" I would be rich

"You can't just block out a time period of the market" Why not? Do we only base investments off the inception of houses to now? Everything with value and returns is referenced by a time period. To say Bitcoin will never outperform something else is insane. Bitcoin use to cost 1 cent and now it costs how many thousands? 

@Ned Carey it seems buying stock in companies that never turn a profit is the best thing going these days. There are tons of them valued at Millions and Billions. There are companies now valued at tens of millions or more that are "pre-money". I don't get it

As to my opinion on the subject, Bitcoin is gambling. You think it will go up when everything else is going down, I think that is insane. I believe there will be a great time to invest in Bitcoin, but it is when the stock market bottoms out IMO. It will bring crypto down with it and everything else and then there will be a point where it skyrockets again. My opinion is about as worthless as everyone else's though because if any of us actually knew, we'd be rich off of it by now

All I know is I am not spending my US$ on some bitcoin mining machine that sucks down more electricity than you want to know about. I will never see those real dollars again. Rolls eyes.

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