Often, older generations of investors look down on cryptocurrencies as most of the narratives surrounding their mindset it's that all the cryptocurrencies will go to zero, including Bitcoin.
This means that they don’t believe in the longevity of Bitcoin or any other cryptocurrencies. In fact, often they will guide younger investors to invest in real estate so their money does not go to waste.
While this is not entirely wrong, most traditional investors think that real estate is still better than crypto, but is that still the case?
In this article we will compare the overall return of the global real estate value and the global crypto value by looking into Bitcoin’s price movement over the years.
Is Real Estate Better Than Crypto?
In this article, public data from Statista will be used to compare the value of investing on real estate and Bitcoin.
The data from Statista will show data regarding the value growth of the real estate sector globally with the data from the commercial and residential real estate combined.
From the data, it can be seen that there is a projection from the current market condition until 2028 so the data is more complete.
Statista showed the real data from the year 2017 until 2028 exactly marking 11 years to compare the data with the 11 years that Bitcoin has been alive which was from 2013 until the year 2023.
When calculating the overall growth of the global real estate value, it can be seen that the averag annual growth from the data above is around 3.9% per year, which means that the value of real estate globally increases around 3.9% per year.
The highest growth that the global real estate market has ever experienced was only a 7.3% jump which was relatively low compared to most financial assets in the market.
Comparing Real Estate to Bitcoin
When compared to Bitcoin, by looking at the data from iShares, that was then processed and made better by the Visual Capitalist website, it can be seen that the yearly growth of Bitcoin is significantly more than that.
From 2013 until 2023, the average annual or yearly growth of Bitcoin stands around 170% , significantly higher than the global real estate market.
Also when comparing it to other assets in the market, it can be seen that most years Bitcoin always beats the annual growth of all these assets.
The lowest growth that Bitcoin experienced was around 5.5% aside from giving losses in the years of the bear market.
The lowest growth is still higher than the global real estate annual growth, indicating that the crypto market is not dead, contrary to what older generations of investors think.
While this value proves the point that it is also valuable to invest in Bitcoin, it is not to say that you cannot diversify on real estate investing or any other products related to the real estate market.
Although real estate has less growth potential than Bitcoin or crypto in general, it is relatively more stable and has more functionalities, in the sense that not only can you buy, hold, and sell it like you do with crypto, you can also rent it out for a steady monthly income as a landlord.
So it all comes back to respecting each other’s decision when investing and adjusting the assets that you choose so that it is inline with your need and your own risk preference.
Because while crypto give more potential growth compared to real estate, it is also more volatile which means that it will not always give you steady returns.
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