Bitcoin Fails Again: Makes Real Estate Look Even Better
Bitcoin value tumbled to a new low again in 2018, and it is proving to be a great thing for real estate.
Bitcoin dived even further to the $8,000 range in recent weeks. That’s down around 60% from its recent highs. A massive loss for many investors. Facebook has announced an all out ban on any ads relating to bitcoin and any cryptocurrencies. A further blow to those hoping to make money from the trend. Adding to the woes, Japanese regulators have raided one exchange after a major heist. Coindesk has had $530M in cryptocurrency stolen in a major hack. That’s following a $400M heist in 2014. In the most recent attack, hackers stated that Coindesk had failed to implement basic security measures. Some investors could be left empty handed. This, in addition to the fact that cryptocurrencies have often been used to pay ransoms to hackers, has brought even more attention from regulators. Regulation could completely change this frontier, with very negative consequences for investors.
While it is always sad when anyone losses money in a bad investment, bitcoin’s recent plunge is certainly good for real estate. It makes real estate look even better. It highlights the safety and benefit of smart property investments.
A number of bitcoin investors have also been cashing out of the digital currency to put their funds into more secure real estate.
There may be some potential crossovers between real estate and cryptocurrencies. And certainly more so in the near future. No one wants to miss out on a hot thing. Yet, those who do invest or bet on these hyper-volatile cryptocurrencies absolutely must ensure it is balanced in their portfolios. When looking at the overall investment landscape, real estate definitely offers some of the best balance. It is is a hard, tangible asset. One which can deliver substantial returns, without having to take unnecessary risks.
Growth is important in wealth and investment capital. Yet, both mortgage notes and direct investment in property, and funds collateralized by real property can deliver attractive returns and passive income, with having to simply roll the dice on the next ‘hot thing’.
Have you invested in cryptocurrency? Have you bought or sold real estate with bitcoin? How are you ensuring balance and future safety in investment portfolio?
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