Over the last few weeks I got into discussions on real estate vs bitcoin.
I am bullish real estate. I also sold an investment property to buy bitcoin. The million sat question:
If I did NOT own a home, would I buy a home now or buy bitcoin? My answer: bitcoin. Here's why.
- The factors that are making real estate go up are the same factors that make bitcoin go up. Bitcoin just goes up harder and faster when these factors happen.
- Not being a jerk, and I think real estate goes much higher, but I have a lot more friends who have been saying real estate will crash over the last 5 years who then bought a house within the last 12 months.
- The only exception to this idea-of buying real estate instead of bitcoin- is luxury real estate with at least 10 to 1 but hopefully 20 to 1 leverage. This is not possible for the majority of first time buyers.
- Bitcoin allows an expansion of a position; Got a bonus check? into bitcoin. Yes, you could buy a reit I guess, but besides that it's hard to dca or throw extra towards real estate.
- Bitcoin allows mobility-for many people, I think they are wildly understating how important this will be over the next decade.
- As bitcoin matures and lending products get longer terms and higher ltv, the price of bitcoin might explode even higher. Real estate is tapped out in this respect.
- A life changing event happens-you get sick, divorced, married, want to take time off, whatever-it's hard to do this as a landlord. Believe me. My tenants (and they aren't bad) need attention. Literally have a hard time fixing the most basic things. Don't think property management companies are turn-key.
- Go back to #2. Add that most people own one home. People who come into bitcoin accumulate hard. The supply getting sucked up relative to real estate is on another level.
- I know multiple people who consider themselves conservative who have 90% of their wealth in real estate. I know no one who is worth more than $500k who has more than 10% of their net worth in btc.
- In 4-5 years I believe the majority of phones will come with digital wallets. I don't see this happening for real estate.
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