Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Property»3 Ways Bitcoin Is Like Digital Real Estate
    Property

    3 Ways Bitcoin Is Like Digital Real Estate

    October 16, 20245 Mins Read


    MIAMI, FLORIDA – APRIL 7: Michael Saylor, Chairman & CEO, MicroStrategy, gestures as he speaks … [+] during the Bitcoin 2022 Conference at Miami Beach Convention Center on April 7, 2022 in Miami, Florida. The worlds largest bitcoin conference runs from April 6-9, expecting over 30,000 people in attendance and over 7 million live stream viewers worldwide.(Photo by Marco Bello/Getty Images)

    Getty Images

    For past generations, owning real estate was the average person’s golden opportunity to accrue generational wealth.

    But for Generation Z, there’s an entirely new touchstone that will separate the “haves and have-nots” in their retirement years: bitcoin.

    Here are 3 ways that bitcoin functions like digital real estate, and why it will likely eat away at its analog counterpart over time.

    1. Universal Desirability

    Bitcoin is a global, uncensorable, neutral reserve asset with no counterparty risk. As long as there is demand in the world for safe value storage, there will be demand for bitcoin.

    Likewise, real estate will be in demand for as long as human beings need space to live and do business. Both bitcoin and real estate will always be in style with almost anyone in the world, making them ideal assets to accumulate with a low risk of long-term value collapse.

    “A Bitcoin is a city block in cyberspace,” said MicroStrategy founder Michael Saylor during an interview on the Funky Crypto podcast in 2020. “If I told you a billion people are coming to that city, and you own the right property, why don’t you keep it in the family for a hundred years?”

    2. Reliable Scarcity

    Currencies can be printed, and stocks can be diluted through issuance. Consumer products like phones and cars can be reproduced to meet consumer demand.

    Real estate is a different story, however. While more buildings can technically be constructed, it is a difficult and slow process to build more homes, especially in high-demand city centers that are already densely populated like New York, London, and Tokyo.

    Due to factors like geography, climate, economic activity, and zoning laws, it grows more difficult to find locations to build homes and businesses that are actually desirable. Meanwhile, as the local population and currency supply rise in tandem, demand for land in these areas increases, driving up costs over time.

    Bitcoin is likely to experience similar price appreciation to real estate over time since the asset is also reliably scarce. With a hard-coded supply cap of just 21 million units, bitcoin has repeatedly proven to appreciate faster when US interest rates are low. Both real estate and Bitcoin make for excellent long-term stores of value, and powerful hedges against inflation.

    3. Yield Generation

    Bitcoin’s loudest critics have long contested that it lacks real value because it is a non-productive asset with no intrinsic yield. “Apartments are going to produce rental, and farms are going to produce food,” said Berkshire Hathaway CEO Warren Buffet at the Woodstock for Capitalists annual meeting in 2022. [Bitcoin] isn’t going to do anything.“

    But this difference is changing fast. Earlier this year, the launch of bitcoin spot exchange-traded funds in the United States gave bitcoin access to the financial rails and tooling of other investment products.

    What’s more, BlackRock has now received approval from the Securities and Exchange Commission to list options for its bitcoin ETF. This will let bitcoin owners begin earning interest by selling call options to traders, turning bitcoin into an asset with cash flows. New technology is also boosting bitcoin’s productivity. Projects like Babylon are now working on bringing “staking” to bitcoin – a feature that lets you earn a yield on your BTC by locking it away to secure other blockchain networks.

    This feature is already available for cryptocurrencies like ethereum, where stakers currently earn 3.2% APR.

    Where Bitcoin Beats Real Estate

    Not only does bitcoin share the core properties of real estate that make it a superb store of value, but its digital nature radically improves those aspects.

    Real estate is landlocked by definition. Any particular piece of land is therefore at the total mercy of local regulations and tax laws, which can radically affect the value of a particular land investment over time.

    By contrast, bitcoin is a fully fungible and global asset. Efforts to heavily tax bitcoin ownership will likely drive wealthy bitcoin owners overseas to regions that will treat them and their digital possessions most kindly.

    Unlike real estate, bitcoin is also hyper-divisible – down to a fraction of a cent. This lets small buyers acquire bitcoin in small amounts and lets existing owners cash out of it in small pieces at their own discretion.

    Real estate, however, has a barrier to entry. Young people in metropolitan areas must burden themselves with a hefty down payment and tremendous debt to own a home and enter the market.

    Given bitcoin’s greater accessibility and superior returns to land over the past decade, it is no wonder why the asset is especially popular among young people. A survey from PolicyGenius in early April showed that 20% of Gen Z respondents in the U.S. owned crypto, versus just 5% of baby boomers. Compared to other investments, only 18% of Gen Z owned stocks, and 13% owned real estate.

    With digital currency now a mainstay financial instrument, the life formula for financial success is being rewritten. For boomers, it was to go to college. For Gen X and early millennials, it was to buy a home.

    For youth today, it might just be to HODL their bitcoin.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Making money from property “is for the birds” says top wealth manager

    Property

    Marseilia Real Estate Investment : Bénéfice net individuel de 11,3 millions EGP au premier trimestre

    Property

    Grade II-listed property dating from 1717 for sale in Bury

    Property

    UK’s most expensive seaside town with million-pound mansions and white sand beach

    Property

    Dorset high street property up for auction

    Property

    Met Office says UK could see third heatwave in the space of a month | News UK

    Property
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Gold prices muted; copper weakens as China stimulus underwhelms By Investing.com

    Commodities

    Macron, Akhannouch International Agricultural Fair in Paris

    Investments

    Daman Investments collaborates with Société Générale to strengthen ESG-focused investing

    Editors Picks

    South Africa’s Bond Auction Could Reshape Investor Sentiment

    October 11, 2024

    Yuexiu Property enregistre 6,23 milliards de yuans de ventes contractées en février -Le 07 mars 2025 à 14:49

    March 7, 2025

    ‘Trump is positioning for power in a rewired world’

    April 23, 2025

    NAS Investment Solutions Unveils New Investment Opportunity with Acquisition of North Houston Multifamily Townhome Property

    August 13, 2024
    What's Hot

    Le fonds Baloise Swiss Property veut lever jusqu’à 154 millions de francs

    June 11, 2025

    Best Crypto to Buy Now: Artemis Crypto with 1000x Potential

    August 19, 2024

    Americas Gold & Silver en hausse de 4,9 % sur le pré-marché américain après avoir donné une mise à jour sur le Complexe de Galène -Le 24 février 2025 à 14:08

    February 24, 2025
    Our Picks

    Gold expect to drop US$2,500: commodities expert

    June 19, 2025

    YouLend Secures US$1bn US Credit Facility to Boost SMB Lending Reach

    October 25, 2024

    Charter Hall augmente sa participation dans Hotel Property Investments -Le 12 février 2025 à 01:08

    February 11, 2025
    Weekly Top

    Zelensky introduced special anti-Russian sanctions for cryptocurrency payments — EADaily, July 6th, 2025 — Politics, Russia

    July 6, 2025

    Ontario funds two miners aiming to boost critical mineral recoveries

    July 6, 2025

    Next Cryptocurrency to Explode, 6 July — Story, Alchemy Pay, Injective, MX Token

    July 6, 2025
    Editor's Pick

    Parade lumineuse de motos Gold Wing au Mans : dans quelles rues voir le spectacle ce vendredi

    May 30, 2025

    Airbus loue 30 000 m2 d’entrepôt à Montbartier

    March 13, 2025

    Police urge caution after B.C. resident loses $160K in cryptocurrency scam

    April 23, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.