Is the Time Ripe Enough for Crypto in Real Estate? Would you buy a house with BTC?
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When I can buy a $3M home and still hold most of my net worth in Bitcoin, I will re-consider the option of buying such a home.
Until then:
> Once upon a time, a man had saved up a 20% down payment for a home.
>
> Instead of taking out a mortgage, the man bought Bitcoins. Since then, the price of Bitcoin has gone up by a factor of more than 1000.
>
> Instead of owning about one-fifth of a home, the man holds BTC worth enough to pay cash for about 200 such homes.
>
Bitcoin is *still* just getting started.
There are ***reasons*** for the amazing ROI. Those ***reasons*** still exist. In fact, today there are even more ***reasons*** than before.
So, it’s ***reasonable*** to expect it to continue to rocket for now.
Meanwhile, real estate has significant holding costs:
* Mortgage interest (in most cases)
* Taxes
* Insurance
* Maintenance
* HOA fees (sometimes)
Bitcoin has no holding costs.
Real estate is nailed down. If the neighborhood goes bad, you’re stuck there.
Bitcoin is completely portable.
Real estate has significant costs for buying/selling. Typically, agents are involved, a title company is involved, loans are involved, bank fees, etc., etc.
Bitcoin has the exchange fee.
Buying/selling real estate takes a long time.
The price of homes is ultimately limited by incomes. Bitcoin has no upper limit.
Real estate is expensive because every fucked up “sheep” out there thinks he/she needs to own real estate to get rich. A few others own real estate because they want to protect wealth from inflation. Things have changed. Now they can just buy and hold Bitcoins, with no holding costs, no being “nailed down”. There’s no need to deal with real estate and creepy people who work in that field — just buy and hold Bitcoins, long term.
Cryptocurrency
