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How Bitcoin Stacks Up Against Real Estate

By March 9, 2018 No Comments

Shrinking natural resources, drastic socio-political changes, increasing radicalization, and sky-high inflation in some regions around the world, are some of the many factors that are pushing the global market to its edge in recent times.
The world economy is perhaps going through its toughest phase right now, with slowdowns visible in almost all major sectors across the industrial spectrum. Now with the value of paper currencies dwindling due to widespread inflation in many countries, people across the globe are looking for greener investment options in both digital and physical domains. Bitcoin is emerging as one such option.
Offering an innovative mix of currency, stock, and commodity, Bitcoin, the hottest buzzword trending all over the internet, in investment houses, technology circles, and even in living rooms of common people, has totally disrupted the global finance landscape, and has stunned the world with its meteoric rise in a fairly short span of time.
However, when something new comes up, especially something that involves finance and investment, the general human psychology is to compare its potential with proven traditional options. This is what we’re going to so in this article. We’ll be breaking down and comparing the world’s oldest investment-real estate—against today’s hottest new investment option—Bitcoin, backed by the revolutionary Blockchain technology.
Real Estate
Real estate, since time immemorial, has been considered as a prized possession that provides a decent return on investments over a mid-to-long term horizon. This was a common phenomenon until the 2008 Global Recession, post which, the housing bubble exploded, driving many investors and consumers in a sorry state of affairs.
Although India didn’t quite feel the burn of the declining world economy in 2008, the country, however, was hit by a terrible inflation in 2009, which practically led to an overnight disappearance of national savings, severely shattering the confidence of consumers throughout the nation.
However, India’s historic emergence as a global power since 2013-2014, has tremendously uplifted and boosted the investment atmosphere in the country, which now sees FDIs flowing in from every corner of the world, in every sector, including native sectors like iron and steel, infra, power, and real estate.
According to a report published by the India Brand Equity Foundation (IBEF), the Indian real estate sector is expected to draw investments worth $7 billion in 2017-2018, forecasted to reach $10 billion by 2020, an unprecedented rise of over 40 percent in less than 3 years.
The Present Real Estate Scenario in India
Though game-changing reforms like the Benami Property Act, GST, and Real Estate (Regulation and Development) (RERA) Act, intend to infuse trust and transparency in the real estate sector, these policy changes, however, couldn’t quite elevate the consumer confidence, which was already at a record all-time low since the beginning of 2017. In addition, the extra documentation and compliance requirements introduced by these new regulations have also slowed down the growth momentum significantly, bringing the industry to a complete standstill.
Furthermore, the real estate market, which has historically given good returns over the past decade, is nearing saturation, and is also due for a correction, driven by major structural changes like GST and RERA. As per industry analysts and experts, it would take at least another 8 to 10 years before the sector can deliver reasonable returns on investments.
Bitcoin
The advent of cyber currencies is driving a paradigm shift, which is increasingly transforming the perspective the world has about currency, finance, and investments. Non-regulated, decentralized form of digital currencies like Bitcoin, combining innovation, technology, and finance, are ushering in futuristic changes that are transferring the power to the people. Bitcoin is breaking geographical barriers, and leveraging fiscal freedom, making life easier on this planet. Here are some points that make Bitcoin investments more lucrative than anything else.
Today, many governments and central banks have already adopted Bitcoin, and many more are jumping on the bandwagon with every passing day. This is boosting the digital currency’s legitimacy and acceptance dramatically, making the cryptocurrency an attractive investment option globally.
Bitcoins can be purchased in small parts. The entry level is as low as Rs.500, which enables practically everyone to enter the market and get started instantly by simply registering on a full-service Bitcoin exchange platform like Belfrics.
In terms of capital appreciation, it’s not just real estate, Bitcoin beats every form of investment, with even the most doubtful forecasts predicting its value at $50,000 in a decade.
Bitcoin has already turned into a massive financial revolution worldwide and 2018 might be the year when governments and central banks come together to give Bitcoin the legitimacy it deserves. If that happens, the value of Bitcoin will double, or perhaps triple overnight.
To make the most of your investments in Bitcoin or any other cryptos, register with Belfrics today.

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