Topic: Bitcoins dominance over Real Estate in terms of profitability - page 3. (Read 423 times)

No. First of all, you have not deducted the associated costs that you talk about later, but you also do not include the appreciation of the value of the house in the equation. Well-located homes can appreciate at 10% per annum.

Bitcoin, however, has quite a few advantages over real estate, and Michael Saylor is one who would tell you it is much better. What happens is that the explanation you give, although long, is not entirely accurate.

For me it is not contradictory. Investing in bitcoin and housing should be complementary. At the very least I recommend investing in, buying, the house you live in, unless you move a lot for work, moving every 5 years or less.


Yes, but it does not give a yield (1.). Although so far in total return bitcoin outperforms good real estate in the sum of appreciation and yield.

The idea of real estate that some investors have is not to buy a land, build a property and then start renting, but to buy a land and resell. That method of real estate can really guarantee double your money or profit that is really huge. The investors who consider buying and building on a land to rent are those concerned about long term benefit from the stable income they have been able to setup which will come monthly or annually as agreed by the tenants occupying the property. Bitcoin investment is good, and real estate is not only for the old.

That's not really the point anyway, let them see what bitcoin does outside and see us enjoy all of the profits that we've made because there's no way that you'd want to miss out despite all of the evidence pointing out that you can make huge money with bitcoin. You're correct with your concerns but if you're in the bitcoin market for the long-term, are you really going to care so much about price fluctuations and dips because I don't think you'll have to care for it given that it's going to be a temporary thing and you're in bitcoin investment for the long-term. A bit of vigilance when it comes to digital scams is the key, just keep on learning and you'd be fine.

This is a great analysis of some of the pros and cons of real estate vs Bitcoin investment!

There are things they must know

• Real estates have no caps, there will be more buildings built in future.
• Price of real estate increases because of many things but basically because of population growth and fiat currency inflation.
• Bad thing is real estate will be damaged with time

They must know that Bitcoin has a cap (21M) and it won't be damaged by time factor.

Well, still you won't be able to convince everyone that Bitcoin is a better investment. There are a couple of negative things which Bitcoin has but the real estate business does not have it. Of course, the real estate business may have some other negative side. But the real estate business is one of the proven and famous investments.

On the other side, Bitcoin is volatile and fluctuates too much. But the price of land does not decrease (there might be some exceptions). A person may lose his Bitcoin investment if they fall for scams! Digital scams are easy and dangerous.

The reason why people think real estate is the best investment are because of two reasons:
1. They can rent their real estate to earn passive income.
2. The real estate (land and buildings) price will increase every year.

It means they will earn realized profit and unrealized profit by investing in real estate.

But they forget if not all renters want to rent their real estate, not all renters have good manner, they need to pay renovation bills, they need to pay tax, etc etc.

While investing Bitcoin, it's completely stress free since you're the one who can control your coins.

You have said it all, personally I have also felt this same way that bitcoin investment overtime is always more profitable than any other asset. One thing that you didn't mention is that real estate is for the rich people, a poor man or an average man will not be able to save over a long period of time to build an estate. His money will depreciates overtime.

Bitcoin can be bought with a little amount and bitcoin has given an opportunity to the poor to also take part in investing. A poor man can DCA withis disposable income at end end of every month, and do this for 4-10 consecutive years and before you will know it, your bitcoin portfolio will have a significant size and only that will bring a good profit to that investor due to the compounding effect of his bitcoin portfolio. This is what makes bitcoin more superior in profit generation, its compounding value overtime.

Many people still consider real estate a good investment (especially the older generation of investors). Let's try to calculate and check if this is true.

My friend has a property (apartment) in one of the most expensive cities in the world* (Moscow) with an area of ​​~65 sq.m (three-room). The market value of this property is approximately ~$170,000. Such an apartment can be rented out for approximately $500-700 per month. This will bring a profit of $6000-8500 per year. It will take 28-20 years for the purchase of a similar residential property to generate a return equal to the cost of this apartment (doubling the money invested).

These are not entirely accurate, but only approximate calculations aimed at showing an approximate “picture”. This does not take into account inflation, changes in the value of real estate (the “body” of the deposit) and the cost of rent (“interest” on the deposit).

Of course, profitability may differ when choosing residential or commercial real estate. Commercial rent will be more profitable, but with such rent many problems arise, such as finding a long-term tenant, because with every downtime in finding a new (short-term) tenant, money is lost. The next “headache” is the repair costs (which will certainly arise) and again drain money from you. And add to everything property taxes and other deductions, for example, tax (13-30% depending on tax residence status) on the sale transaction if the property was owned for less than 3-5 years (as in the country in which my friend’s apartment is located). One should take into account the likelihood of a fall in the value of real estate and rent due to the deterioration of the situation in the area or city as a whole due to environmental problems (pollution) or man-made (military operations), natural phenomena (fires, floods, volcanoes).


Whereas with bitcoin (compared to real estate), you just buy it and hodl it safely. It seems impossible to come up with more passive investments. Do you feel an advantage in choosing real estate investment over bitcoin? I will not ask the question of what you would prefer to invest in here, because it is already clear what the majority will choose.

With this post, I wanted to strengthen the conviction of BTC-investors that their choice was correct, because instead of buying a conditional one apartment, in 10 years you will be able to afford to buy several (probably more than 1) apartments (depending on the country and location). Like Didi Taihuttu, who sold his house and bought bitcoin.

^* - Static cost of 1 sq.m. residential real estate for 2023 by city of the world (according to various sources from the Internet).

 1 - Monaco (73,6k - 54,7k euro)
 2 - Hong Kong (27,7k - 18,6k euro)
 3 - Switzerland (Zurich)  (22,3k - 13,7k euro)
 4 - South Korea (Seoul) (19,5k - 10,6k euro)
 5 - Singapore (18,5k - 10,7k  euro)
 6 - Great Britain, London) (15,4k - 8,9k euro)
 7 - Israel, Tel Aviv-Yafo)  (14,8k - 9,9k euro)
 8 - USA (New York) (14,2 k - 9,3 k euro)
 9 - France (Paris) (12,4 k - 8,7k euro)
10 - Cyprus (Limassol) (3,3k - 2,3k euro) - A friend’s apartment is located at approximately this price level (~2,4k euro, Moscow).