Real estate or Bitcoin – Who will win the ultimate race?

Bitcoin is known as the “king of cryptocurrencies” for a reason. There is no denying the fact that the digital asset has shown phenomenal growth in the last three years. Since then, it has been the talk of the town for most avid investors around the globe.

Anyone who has internet access and a moderate degree of interest in investments have at least considered investing in cryptocurrencies, if not going ahead and buying one.

Real estate, on the other hand, has proudly stood the test of time as a dependable investment. By far, it has been the most favourable asset class for investing a hefty sum of one’s hard-earned money.

Clearly, both assets demonstrate prospects of high returns. But the big question remains – who will make the headway in the most desirable investments of 2019?

Limitations vs. Volatility

Real estate is restricted to the amount of land on earth. After all, there are only a finite number of constructions one can make on a given piece of land. Hence, the options are limited.

That said, it is also considered an asset value one cannot do away with. Be it residential, commercial or investment purposes, real estate is a must-have and a requirement for human life.

While this may be true, bitcoin is probably much bigger on returns. This out-of-the-ordinary investment class has managed to turn mere teenagers into millionaires.

With no physical barriers, the growth opportunities for bitcoin expansion and adoption are endless. As a result, it has become one of the most sought-after investment opportunities in the world.

The blockchain technology, which forms the basis of any cryptocurrency, has been disrupting and evolving industries in exciting ways. Bitcoin is only a means of exchange on blockchain and not backed by a concrete asset.

For generations, people have continued to survive and prosper without this digital currency and will continue to do in the foreseeable future. This is what makes it extremely volatile. To put things in perspective, bitcoin’s most-talked-about bullish run lasted for two weeks before getting bogged down by rapidly fluctuating emotions.

At the same time, buying a home is a means of securing the future for your family. Although limited, a majority of real estate land can be repurposed to accommodate any business idea. From growing crops to renting out the land, real estate brings home the bacon.

Tie-breaker: Taxation

Finally, yet importantly, taxation is a real game changer for many when planning on where to cast the vote. And in this context, real estate takes the cake. It enjoys tremendous tax benefits, making its investor come out a winner with maximum returns after tax. Unfortunately for Bitcoin, most governments impose taxes on every little gain, be it short term or long term capital rates.

So, what’s the ultimate takeaway? Bigger the risks, higher the returns! Real estate may be a surer path to long term wealth gains but bitcoins have and will continue to witness price-booms like no other valuable asset! Why not make the most of both?