Where Would You Rather Invest, Real Estate or Cryptocurrency (Bitcoin)?

In Pakistan, people tend to keep some savings from their hard-earned money throughout their careers. Once these savings turn into a significant amount, they tend to invest this money at a place that can give them a continuous return and secure their Future. In the past, people had scarce options for investing their money. The reason for these few investment opportunities was the absence of digital means, due to which investors could only put money in places they were physically acquainted with. Now, with the advent of modern technology, people have access to a diverse range of investment choices. In recent times, Cryptocurrency has been a lucrative investment for people. However, digital means of investment involve more risk factors. Another renowned investment market is the Real Estate market. These investments are one of the most secure investments because the demand for this market never decreases. Additionally, the Real Estate market has a physical presence where an investor can directly approach it; thus, there is fewer risk factor in Real Estate Investments. 

In this blog, we will discuss the investment opportunities and risks in real estate and cryptocurrency (bitcoin being the largest of them), and explain why a real estate investment is better than a cryptocurrency investment.

Before dwelling on the question of which one is better, it is better to define both these terms. 

Real Estate 

Real estate refers to the buying, selling, and renting of land, buildings, and other properties. This can include residential properties, commercial properties, and industrial properties.

Cryptocurrency

A cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank or government. Cryptocurrencies use decentralized systems, typically a blockchain, to record transactions and manage the issuance of new units. Some of the most well-known cryptocurrencies include Bitcoin, Ethereum, and Litecoin. 

Physical Presence

Real Estate Market has a physical presence and it cannot be evanesced from the face of the earth. Unlike real estate, cryptocurrency exists only in the digital world and such a situation can arise where it gets diminished once and for all. Thus, the real estate market is safer and more securer to invest in as compared to cryptocurrency due to its tangible nature. 

Continuous Return on Investment

Real Estate Investments can yield a high return on investment consistently if they are done while keeping the market trends in consideration. If a piece of land is bought and left as it is, still its price will keep on rising consistently. Moreover, the real estate market is most of the time predictable so it is easy to decide when to sell or buy the property. On the other hand, cryptocurrency is highly unpredictable. Most of the time it is running on guesswork which can't be trusted. Also, the increase or decrease in the value of cryptocurrency is sudden so you cannot plan anything based on such investments. 

Market Complexity

Real Estate Market is approachable by common folk so it is an easily understandable market. Furthermore, numerous real estate marketing companies like Regal Marketing have teams of skilled realtors to give you free real estate consultancy in Pakistan. In the case of Cryptocurrency, it is an extremely complex market that is difficult to understand for a layman. The cryptocurrency platforms like Binance have complicated charts showing market trends of bitcoins, Ethereum or other coins. To be able to comprehend something meaningful from this data, one needs to have top-notch expertise in this field. Thus, Real Estate investments are preferred over cryptocurrency investments. 

Prices Fluctuations

Real Estate Market is less likely to be affected by external factors because it has a tangible existence. This gives it an intrinsic value that can be asked for even in times of economic recession. Cryptocurrency has prices fluctuating with each passing second. This can be understood more clearly from the example of Bitcoin which once hit an all-time high price of above 68,000$, and then a slump was seen which brought the coin back to just 15,000$ within a year. Hence, Real Estate investments are considered safer by investors in Pakistan because there are fewer fluctuations in Real Estate Market as compared to Cryptocurrency. 

Regularisation by Central Authority

As cryptocurrency is decentralized, it is not controlled by any central authority. This means that cryptocurrency cannot be controlled by governmental institutions, which leads to multiple scams online where people lose their merited money. Contrary to cryptocurrency, the Real Estate market is continuously regularised by the government. Consequently, if there is fraud made in real estate, government authorities can easily reach out to the owners and bring them to the court of justice. This is another strong reason to invest in real estate instead of cryptocurrency. 
 

Conclusion

There are several reasons why investing in real estate is better than investing in cryptocurrency. One reason is that real estate is a tangible asset, while cryptocurrency is a digital asset. This means that real estate can be physically seen and touched, whereas cryptocurrency exists solely in digital form. Additionally, real estate can generate income through rental properties, while cryptocurrency's value is primarily based on market speculation. Real estate also has a long history of increasing in value over time, while the value of cryptocurrency can be highly volatile. However, it is important to note that real estate and cryptocurrency are different types of investments and each has its own set of risks and potential rewards. It is always recommended to do your research and consult a financial advisor before making any investment decisions.