Bitcoin (BTC) Vs. Real Estate Not Even Yours Random Musings and Real-Time Opinions

Who would invest in new business when the cost of capital is that much higher? Today there is an incentive to invest Fiat currencies into productive assets, how would that work with Bitcoin if the expectation is that hoarding is all you need to do to gain wealth? Employment? And more so, who would invest in Real Estate? Which is better? Real Estate or Bitcoin (BTC)

Central Banks are Fraudulent:  The statement that central banking is fundamentally “fraudulent” is the clearest summary yet of the understanding of the problem that Bitcoin and digital currencies might pose for the existing monetary system and may be the best argument anyone has made for their adoption.

Real Estate Investment:  Real estate is a scam investment, it’s just a durable consumer good. It’s too easy for more to get built, constant dilution so it can’t be a good store of value long term. Bitcoin on the other hand is actually limited to 21 million, so there’s no long-term dilution.

You receive rents though, so it does produce cash flow which can be discounted and valued while you maintain control of the property. Bitcoin requires the sale of the asset to generate cash. Lending it gives up keys. BTC will cause higher cap rates in RE as it takes SoV premium.

Selling Bitcoin to Buy Real Estate:  B-but the American dream! I know a guy who sold 2 BTC at $10000 to have enough money for the down-payment on a $220k house. He must feel really bad. Haven’t talked to him since last year.  So, you are telling me I should not part with my Bitcoin to get a comfy house unless I really need to?

Cheap Rentals is a Different Story:  If you want to leave a legacy, building beautiful & quality architecture for your family, your kids, your society and future generations is the way to go. Cheap rentals is a different story.

Opinions about Legacy:  The legacy you leave will be a never-ending expense in the form of maintenance, insurance, and taxes. Provide your kids the means to not be wage slaves and offer them the priceless gift of freedom instead.

Other Issues with Real Estate Investment:  You do not consider externalities, such as taxes. I am not disputing that bitcoin is greater than RE, but there is a place for RE as a portfolio investment/shelter/consumable capital good.

Real estate investing has more tax considerations to consider than bitcoin does. It’s a lot of work to real estate taxes, way harder than bitcoin taxes.

Interesting point of view. Historically, real estate has been the best investment for many since it allows you to rent and obtain profits apart from the increase in value over time. Good topic for a discussion for those who are thinking between BTC and real estate.

Real Estate Allows for Most Fiat Debt:  Real estate allows for the most fiat debt though. Can think of it as a play on debt not the asset. Acquiring bitcoin is the best investment, acquiring cheap fiat debt is the second-best IMO.

And it’s not even yours. It belongs to the government. You pay a buying price IM order to get a lower rental price.

How many have invested in real estate just to beat inflation? How much capital will flow from RE into BTC once opportunistic investors realize it’s a better asset to hold?

If bonds, stocks & real estate demonetize, it’s not going to be pretty. So, buy Bitcoin.

Bro, your commentary about real estate sounds just like a Bitcoin critic who knows very little about Bitcoin. Too easy to get built? Beachfront, lakefront, highway frontage, entitlements, zoning restrictions, proximity to airports, train lines and air rights all beg to differ.  Don’t forget property taxes, insurance, and maintenance requirements (sometimes HoA or condo association payments as well). Vacancy risk for those looking to rent out their properties.