Smart people are careful about their finances, so they plan investments very cautiously. But with so many options available out there – including gold, bonds, real estate, stocks, and cryptocurrencies – choosing the safest asset class is no easy task.

According to the report, more than 30% of Americans name real estate over several other vehicles for growing wealth as the best long-term investment. Real estate has traditionally been one of the most desirable options for serious investors, but how does it perform compared to the latest assets such as Bitcoin?

This article will show you the current trends in this field and present you the pros and cons of Bitcoin and real estate. Let’s take a look!


Advantages and Shortcomings of Bitcoin and Real Estate Investing

Advocates of these two asset classes both have their own arguments to justify investments. For instance, house price trends indicate that real estate prices in the US are expected to continue rising by 4.3% in 2019 and 3.6% in 2020.

On the other hand, the overall cryptocurrency market is projected to reach $1.4 billion by 2024, at a CAGR of 6.18% during the next five years. The future is obviously bright for both asset classes, so your investment decision depends mostly on personal needs and preferences.

That’s why you need to learn the pros and cons of these two models.


Pros of Investing in Bitcoin

Long-term potential

The most popular cryptocurrency has been around for barely a decade, but it already proved an incredible potential. Therefore, you can expect it to stick around much longer.

No fear of Inflation

Bitcoin is fixed and governments cannot produce or print additional assets on their own, so you don’t have to fear inflation.

Easy to sell

If you need money urgently, you can sell this cryptocurrency within minutes.


No central authority controls Bitcoin, which means you don’t have to pay annoying transaction fees or deal with boring administration.


Pros of Investing in Real Estate

Long-term stability

Real estate is safe and sound. The market almost never suffers from sudden changes and unexpected value fluctuations.

Tangible asset value

As a property owner, you have a tangible asset value at your disposal. It’s a physical object that you control 100%.


The fact that it’s tangible also suggests that you can actually use real estate. Most people rent their houses and apartments, while the second option is obvious – use it as your own home.


Real estate is a great way to diversify your portfolio. It guarantees additional safety just in case something goes wrong with other assets.

The two asset classes have a number of positive features, but you should not neglect the other side of the coin.




Cons of Investing in Bitcoin

Market Volatility

Bitcoin peaked in late 2017 when it reached the price of over $20 thousand, but it dropped to less than $4 thousand in a few months time. The cryptocurrency market is highly volatile, so you have to keep an eye on it 24/7.

No real Value Behind it

Bitcoin derives its value from users who believe in it. It’s the same as regular money, but can this trust last forever?

Lack of Security

There is no central authority to control cryptocurrencies, but this can be problematic in case of frauds because you have no one to file a complaint to.

Government Impact

A lot of countries, including China, Russia, Sweden, Iceland, and India, banned Bitcoin. The same thing could happen in your country as well and you can never be sure about it.


Cons of Real Estate

Hard to sell

Real estate is safe, but it often takes a lot of time to sell your property.

Slow Growth

The stability of the real estate market also means you should not expect a sudden spike in prices.

Expensive Investments

The price of real estate property is the main reason why most investors prefer stocks, bonds, and cryptocurrencies.

Maintenance Costs

Unlike cryptocurrencies, real estate demands maintenance, which can cost you a lot of money in the long-term perspective.

The Bottom Line

If you can afford it, the best solution is to go both ways and invest some money in Bitcoin and real estate. Of course, you should follow the coming trends and buy/sell assets as soon as you notice a good opportunity.



Load More By Robert Zackman
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