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[Tut] 30 Reasons Bitcoin Is Superior to Real Estate

#1
30 Reasons Bitcoin Is Superior to Real Estate

5/5 – (1 vote)

Real estate is the largest asset class in the world. The market cap of all real estate is said to be north of $327 trillion (!) USD. Bitcoin, on the other hand, is tiny in comparison and trades at roughly $0.5 trillion USD at the time of writing.

However, many real estate investors buy real estate as a store of value to protect themselves from the inflation produced by the fiat system. However, billionaire investors such as Michael Saylor argue that Bitcoin is a far better and far more scarce store of value than real estate.

? There are billions of houses but only 21 million Bitcoin — let that sink in.


Store of Value Medium of Exchange Unit of Account
Bitcoin ⭐⭐⭐ ⭐⭐⭐ ⭐⭐⭐
Real Estate ⭐⭐ ⭐ ⭐

  • Store of Value: Unlike real estate, Bitcoin is truly scarce — new houses can be built at will, but Bitcoin has a hard supply limit of 21 million.
  • Medium of Exchange: Bitcoin can be transferred easily whereas real estate is highly illiquid and has significant friction costs when sold.
  • Unit of Account: Bitcoin provides a full ledger system that has perfect predictability and, thereby, it is a much better unit of account than houses.

In this post, I’ll explore Bitcoin’s most crucial, specific advantages over real estate. ?

Disclaimer: While we consider every point on this list true, we are not financial advisors and this should not be considered financial advice. ?

Reason #1 – Portability



Bitcoin can be easily transferred anywhere in the world, while real estate is limited to a specific location.

Reason #2 – Liquidity


Bitcoin can be bought and sold in an instant, while selling real estate can take months or even years.

Reason #3 – Accessibility


Bitcoin can be bought with a few clicks on a smartphone, while buying real estate requires significant capital and legal processes.

Reason #4 – Transparency


Bitcoin transactions are recorded on a public ledger, providing transparency and security, while real estate transactions can be opaque and subject to fraud.

Reason #5 – Security



Bitcoin is stored in digital wallets that can be easily secured with encryption, while real estate requires physical security measures. Nobody can take your Bitcoin without your cooperation. But many could take your real estate!

Reason #6 – Divisibility


Bitcoin can be divided into small fractions, making it more accessible to smaller investors, while real estate requires significant capital investment.

Reason #7 – Inflation hedge


Bitcoin has a limited supply, making it a good hedge against inflation, while real estate can be affected by inflation.

? Recommended: The Bitcoin Valuation Thesis

Reason #8 – Low transaction fees


Bitcoin transactions have lower fees than real estate transactions, which can have high closing costs.

Reason #9 – No intermediaries



Bitcoin transactions can be done peer-to-peer without intermediaries, while real estate transactions require intermediaries such as real estate agents and lawyers.

Reason #10 – Accessibility to global markets


Bitcoin can be easily traded on global markets, while real estate investment is limited to local markets. For example, Bitcoin is accessible to Nigerian farmers who cannot invest in New York prime real estate.

Reason #11 – No maintenance costs


Bitcoin does not require maintenance costs, while real estate requires ongoing maintenance and repairs.

Reason #12 – No property taxes



Bitcoin does not require property taxes, while real estate is subject to property taxes.

Reason #13 – No zoning restrictions


Bitcoin is not subject to zoning restrictions, while real estate is subject to zoning regulations.

Reason #14 – No mortgage payments


Bitcoin does not require mortgage payments, while real estate requires ongoing mortgage payments.

Reason #15 – No tenant issues



Bitcoin does not require dealing with tenant issues, while real estate investment requires dealing with tenants and property management.

Reason #16 – No depreciation


Bitcoin does not depreciate in value, while real estate can depreciate over time.

Reason #17 – No insurance costs


Bitcoin does not require insurance costs, while real estate requires insurance coverage.

Reason #18 – No legal disputes



Bitcoin transactions are irreversible, reducing the likelihood of legal disputes, while real estate transactions can be subject to legal disputes, such as property disputes and contract disputes.

Reason #19 – No inspection costs


Bitcoin does not require inspection costs, while real estate requires inspection costs before purchase.

Reason #20 – No closing costs


Bitcoin transactions do not require closing costs, while real estate transactions can have significant closing costs.

Reason #21 – No need for physical presence


Bitcoin can be bought and sold remotely, while real estate transactions often require physical presence.

Reason #22 – No need for financing



Bitcoin can be bought with cash, while real estate often requires financing through loans.

Reason #23 – No need for credit checks


Bitcoin transactions do not require credit checks, while real estate transactions often require credit checks for financing.

Reason #24 – No need for appraisals


Bitcoin transactions do not require appraisals, while real estate transactions often require appraisals before purchase.

Reason #25 – No need for property inspections


Bitcoin transactions do not require property inspections, while real estate transactions often require property inspections before purchase.

Reason #26 – No natural disaster risks



Bitcoin is not subject to natural disaster risks, while real estate can be affected by natural disasters such as floods and earthquakes.

Reason #27 – No environmental risks


Bitcoin does not have environmental risks, while real estate can be affected by environmental hazards such as pollution and toxic waste.

Reason #28 – No eminent domain risks


Bitcoin is not subject to eminent domain risks, while real estate can be subject to government seizure for public use.

Reason #29 – No zoning changes


Bitcoin is not subject to zoning changes, while real estate can be affected by changes in zoning regulations.

Reason #30 – No need for property management



Bitcoin does not require property management, while real estate investment requires property management and maintenance.

? Recommended: 11 Best Bitcoin Books: Your Ultimate Guide for 2023



https://www.sickgaming.net/blog/2023/05/...al-estate/
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