BITCOIN vs Property investments

Many investors compare Assets and Bitcoins to determine which is the better investment?

When benchmarking an investment, several factors are considered, including risk/reward ratio, historical trends, future expectations, and market volatility. We've all heard of investors who chose to buy at the perfect time and have been wildly successful. Bitcoin has created many millionaires and in some cases billionaires have taken a gamble from the very beginning.

The question investors need to ask now is is Bitcoin still a gamble? Are they too late to get the same impressive returns as early crypto buyers? What is the outlook for bitcoin? As entrepreneurs, we'd love to know the different types of investments that can make us money. Cryptocurrencies have been on our radar for some time, and we are often consulted on whether it is a viable investment option.

In this article, we present the Bitcoin and real estate investment case to establish which is the best investment?

 

What is Bitcoin?

Bitcoin is a digital currency. It is created and owned electronically and uses peer to peer technology. In a peer to peer network, a group of computers are linked together with equal data processing rights and responsibilities. Unlike a traditional client-server network, no devices in a peer to peer network are designated solely to serve or receive data. which means that the management of Bitcoin transactions and issuance is done jointly by the network.

This is a decentralized currency, no one controls or owns Bitcoin and it is open to anyone to use. Not being controlled by a big bank is the key feature that makes it Bitcoin very attractive to majority of people alongside it not being printed like regular currencies.

Out of the hundreds of cryptocurrencies, Bitcoin is perhaps the best known and the one we all hear about in the press.

 

Property vs Bitcoin, Which is Better?

To compare property in its many forms versus Bitcoin and decide which is a better investment, the value of what a property brings should be looked at in terms of its value, asset contribution, advantages and disadvantages and score (how much you are set to make in NET profit).

The buy-to-let property allows for some key properties that Bitcoin will never have or will not have (in terms of physicality’s, owning a physical property and everything in it) for many years to come.

UK Housing Demand

Firstly property is a tangible asset, bitcoin is not. Tangible means something that is touchable, you can feel it, something that has physical sense of touch etc. 

People will always need a place to live/stay, which is why when it comes to investments real estate is a serious candidate to consider when making any type of investment.

Demand for housing greatly exceeds for supply grand scheme of the market. With population continuously growing and there are some drawbacks to construction being able to meet the supply and demand. As resources can become scares or there may not be enough of a work force to cover a team of builders, electricians, plumbers etc.

An industry worth the investment.

Recently reported in the UK, property is ‘too big to fail’, which indicates the government supports the industry to its fullest even during the coronavirus pandemic.

As one of the first industries to reopen in 2020 it has successfully not been shut down again during any of the lockdowns that have taken place. Giving it a high importance as a market which benefits the economy and the UK overall.

A substantial stamp duty property tax break is now available to UK property buyers, along with a number of other initiatives, all of which are signs the government wants to keep it industry continues to grow.

As Bitcoin is not liable to any forms of authority, it is not protected by any government meaning that any network issues or issues in general that Bitcoin can face could and will be detrimental to the blockchain and an individual’s investment, due to it not having a safety net.  

Predicting the Future

As Bitcoin has gained more traction in the last decade it is still unsure how it will behave.

There is loose speculation and large sums of money thrown at the base of a number of companies that are considering incorporating Bitcoin into their strategies, but it is too early for the existence of cryptocurrencies to do so. unambiguous predictability.

The UK property market has just gone through one of its most unpredictable times, but there has been stability in housing, its prices and investment opportunities. Price growth forecasts can fluctuate for a while depending on forecasts for the unemployment rate and other sectors of the economy as a whole having an impact on the real estate market.

Similarly, traditional currency values ​​are influenced by political and economic factors allowing traders to plan ahead and take calculated risks. The crux here is that it's not clear what exactly triggers Bitcoin's value growth.

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If you are interested or considering investing in property and would like to see any available units we have or to get additional information about certain areas feel free to contact us at info@sourcedinvest.com or give us a call at 0800 249 5600