Bitcoin vs. Real Estate: A Detailed Comparison of the Two

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If you are looking for a way to use your money to make money, you are thinking about quality investments. Two possible investments include cryptocurrency, such as Bitcoin, and real estate, a physical asset. Both Bitcoin and real estate have their benefits and drawbacks. Therefore, how can you decide which one is right for you. It is essential to take a closer look at the advantages and disadvantages of Bitcoin when compared to real estate if you can make the right decision for yourself and your family.

The Benefits of Bitcoin Over Real Estate

There are a few benefits of investing in Bitcoin when compared to real estate. These include:


First, the fungibility of Bitcoin is significantly better than that of real estate. Fungibility refers to the ability to transform one asset, such as Bitcoin, into another asset. For example, it is relatively easy for you to swap Bitcoin for something else. You might want to sell Bitcoin and purchase a different type of cryptocurrency. In contrast, this is not as easy with real estate. You cannot use real estate as a medium of exchange for goods and services, and it isn’t easy to transform real estate into another asset.


In addition, Bitcoin is much more marketable than real estate. There are a lot of people who are very interested in purchasing cryptocurrency. As a result, the value of Bitcoin has been on the rise for several years. It is difficult to ignore how much cryptocurrency has outpaced the general market regarding the return on investment. Even though real estate has appreciated during this time, it has not appreciated as quickly as cryptocurrency. Marketability is much better for Bitcoin than it is for real estate.


Another significant benefit is that Bitcoin can now be used as a medium of exchange for goods and services in multiple locations. Therefore, there are some situations where Bitcoin can be treated as cash. The same cannot be said of real estate. Furthermore, it is much easier to swap Bitcoin for cash than real estate. This is another significant advantage that Bitcoin has over real estate.


Bitcoin is far more mobile than real estate if you need to take your assets with you. If you ever need to access your cryptocurrency assets, all you have to do is log in and use your cryptocurrency wallet using your public and private keys. This makes Bitcoin mobile and liquid. The same is not true of real estate. You can’t take real estate from one location to another. Therefore, you will be subject to any taxes, and it is difficult for you to access the value you have in real estate without having to go through a complicated sale process.

No Liabilities

There are no liabilities that come with Bitcoin. Of course, there is always a risk that the value of your investment could go down, but the same is true with real estate. On the other hand, if you own property, you are taking a lot of significant risks. For example, if someone comes to your property and gets hurt, you could be liable for their injuries. Or, if a natural disaster strikes, you could be responsible for the repairs. It would be best if you thought about the potential liabilities when you have a stake in real estate.

No Maintenance

Furthermore, you don’t have to worry about any maintenance tasks when it comes to bitcoin. Bitcoin is a digital asset, which means it sits in your virtual wallet until you use it. You do not necessarily have to do anything to take care of it. The same cannot be said of real estate. If you want your property to maintain its value, you have to take care of it. This means you need to take care of the roof, the water heater, care for the furnace, and make sure you don’t have to make any repairs. All of these expenses can add up quickly. Ultimately, this could take a bite out of your capital gains.

Property Rights

Property rights are also a significant advantage of Bitcoin when compared to real estate. It is nearly impossible for someone to come and seize your cryptocurrency from you. It is yours until you decide to do something with it. Even though you also have property rights regarding real estate, someone can take this away from you. You have to pay your mortgage, or the bank will foreclose on you. Do you also have to pay your property taxes, or could the state foreclose on you? You also have to pay any HOA dues you might have. Some homeowners associations have the power to foreclose on a homeowner. Therefore, your property rights are a much bigger issue with real estate when compared to cryptocurrency.

Difficulty Adjustment

Finally, there are the difficulty adjustments. This mechanism specific to Bitcoin ensures, among other things, its scarcity through a pre-programmed monetary issue. In other words, even if the hashing or mining capacity increases over time, the amount of Bitcoin released into the economy remains the same, as determined by the algorithm. This is not something that takes place in the world of real estate.

These are just a few of the most significant benefits of Bitcoin over real estate. At the same time, there are a few drawbacks of cryptocurrency when compared to real estate.

The Drawbacks of Bitcoin Compared to Real Estate

A few of the biggest drawbacks of Bitcoin when compared to real estate include:

No Yield

One of the most significant issues you may encounter with cryptocurrency is that you will not generate any yield. This means that while you hold real estate, you can generate income. For example, you may be able to rent out your property to somebody else. This provides you with the income you can use to pay your bills as the value of your property increases. Therefore, with real estate, you are making money not only in terms of capital gains but also in terms of rent. It is possible to make a return on your bitcoins, but this involves typically putting them on a third-party platform and therefore putting them at risk of loss.

Cannot Live There

Of course, there is another significant drawback that comes with owning cryptocurrency. You cannot live there. In contrast, this is something you can do with real estate. You can purchase a house, create a wonderful life for yourself and your family, and enjoy everything it provides you. Therefore, real estate is significantly different from cryptocurrency in this respect as well.


Of course, it is also important to point out the volatility of cryptocurrency compared to real estate. Even though the real estate market can be volatile, it is not nearly as volatile as the cryptocurrency market. It is not unusual to experience big swings in the value of Bitcoin in both directions. Even though some people may enjoy the roller coaster ride, it is not necessarily for everyone. It would be best to think about these benefits and drawbacks before deciding which option is right for you.

Make the Right Decision for Yourself

There are a lot of benefits you will enjoy if you decide to invest in cryptocurrency. It is easy for you to swap cryptocurrency for cash or another type of cryptocurrency. You also do not have to worry about any maintenance. Owning Bitcoin also does not create any additional liabilities for yourself. At the same time, you also have to think about the drawbacks of owning cryptocurrency compared to real estate. You can rent out your real estate to somebody else, or you can live there. The same cannot be said of Bitcoin. Because there are so many benefits of owning Bitcoin, this is something you should think carefully about. This could be an excellent way for you to diversify your investment portfolio.

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Disclaimer: The information provided on this blog is for informational purposes only and should not be taken as any form of advice.

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