Real estate vs. Bitcoin

[exstasie]

Real estate could be deflationary in nature similar to bitcoin. Real estate development and construction have not maintained pace with population growth, making real estate scarce(r) in supply. The main bottleneck preventing real estate from appreciating in value is wealth and wage inequality limiting the number of people who can afford to buy it. That malus to consumer purchasing power and demand could devalue real estate below its actual market value.

You've got it backwards. The actual market value is based on real supply and demand. Houses are only worth what people are able and willing to pay. Similar to Chinese ghost cities, just because you build them doesn't make them valuable or in demand. If a house cost you more to build than what it can sell for on the market, you've just made a poor investment. That's all.

There could be correlation and causation between unaffordable assets and deflationary paradigms.

I'll give you an example. Healthcare could be considered deflationary in ways which leads to it being unaffordable. The doctor to patient ratio in the USA is something like 1 doctor for every 1,000+ patients. Wheras other nations are luckier to have doctor to patient ratios nearer to 1:300. In past years america's doctor to patient ratio was lower. In a sense we have a situation where there are fewer doctors in terms of overall patients similar to bitcoin rewards halving.

Real estate is identically inflationary in ways. Imagine what would happen if the human population doubled while the amount of homes, apartments and living space remained the same. Real estate would become a scarce and somewhat deflationary asset similar to doctors in the US becoming scarcer in a somewhat deflationary format.

I hope that clarifies things. Not certain where you disagreed with me, here. It seems as if we're both saying the same thing.

It was just about this idea of "market value." I'm a big believer in markets as the most efficient way to distribute assets, goods, services. My overall take is that, to give an extreme example, if we have a society where no one can afford housing, that suggests the existing housing has little market value. If there is no trading volume or liquidity, if there is zero demand, there is no provable value. You can offer it for sale but if no one is willing to buy, you can't argue it's worth the selling price. It's clearly worth less.

Here's an example. You have an illiquid shitcoin. Nobody wants it, nobody trades it. Just like the situation above where no one can afford housing, there is no market demand. Does it have value? Of course not. An asset only has as much value as someone on the market is willing to pay for it. Maybe you spent an absurd amount mining this shitcoin, but that doesn't make it valuable. To me, that's the same as spending an absurd amount building a house no one can afford to buy.

[MCobian]

I think investing in Bitcoin is better than real estate right now. Due to the current pandemic situation, people rarely buy houses,
so it would be very difficult to sell houses in a situation like now. Moreover, house prices are very expensive, with the economic
crisis hitting the entire country. I think very few people can afford to buy a house. Then it is not a good choice for investing in Real
estate. Bitcoin can be purchased for as little as $ 10, so it's very affordable. So it's no wonder that in 2020 the popularity of Bitcoin
is getting higher, which means that many people have started buying Bitcoin this year.

[nasipadang]

Deregulation is inconsequential at this point and real estate values have correlation with foreign exchange rates.  Supply in RE alludes to the property you want to purchase or sell. As a result, currency is in demand because of EMH in due to supply/demand. RE is simply one of the assets tied to availability of real loanable funds.  Availability of real loanable funds.  Fx rate.  Cost of goods.  The reason real estate prices are declining is because there is a decline in availability of real loanable funds. A decline in loanable funds is a result of foreign exchange rate decrease.  The market is responding to an inevitable future FX decline. 

Broadly speaking, the RE value theory is very influential with changes in foreign exchange. The market has the same logic where supply and demand make value, in RE and BTC they are quite different. I think that the decline in RE value that you mean doesn't really make sense because investing in real estate is an investment that clients very much ask for, the RE investment portfolio is better in terms of value growth every year.

[Leviathan.007]

Talking of real estate is competently depends on where are you actually live and your government policies regarding to the real estate. In some countries the government will take people a huge amount of tax for holding any kind of real estate other than their own home. If you don't have such tax problems in your country, buying real estate, maybe an apartment and renting it can be pretty good. In the other side of story, you will need much more money to invest on real estate and government can always track all your funds.

[lepbagong]

Talking of real estate is competently depends on where are you actually live and your government policies regarding to the real estate. In some countries the government will take people a huge amount of tax for holding any kind of real estate other than their own home. If you don't have such tax problems in your country, buying real estate, maybe an apartment and renting it can be pretty good. In the other side of story, you will need much more money to invest on real estate and government can always track all your funds.

the government is smart in tracking everyone's assets to invest in real estate and possibly other expensive products like cars and so on. for the rich, it doesn't matter because they can pay taxes with the results of their business and often it is paid by the company where they work. but what is feared is a deviation from people who steal state money to be invested not in their name and this often happens so that when fraud occurs after exiting punishment, they still have assets in store. and until now the authorities have not been able to do it or there is cooperation and no one can find out.

[Mauser]

Talking of real estate is competently depends on where are you actually live and your government policies regarding to the real estate. In some countries the government will take people a huge amount of tax for holding any kind of real estate other than their own home. If you don't have such tax problems in your country, buying real estate, maybe an apartment and renting it can be pretty good. In the other side of story, you will need much more money to invest on real estate and government can always track all your funds.

The amount of research needed to be done to make a real estate deal is much higher than investing in cryptos. You are right that there are so many different aspects to be considered when buying property. One alternative could be to invest in real estate funds that invest in a broad area of properties. But personally I would recommend going for bitcoins. Interest rates have been on the low levels for the last 10 years which made loans very cheap and housing affordable for a lot people. Prices are very high right now.

[beerlover]

That is the difference between bitcoin and fiat investments, in bitcoin smaller investors could take a charge as well and that is what makes this so beautiful as well. If you are already rich that you consider if you should get a real estate or you should get bitcoin, you can go with real estate by that point, nobody really cares because you are already rich anyway so it is not a big issue.

However if you have few hundred or few thousand dollars that you have no idea what to do, you could only go for bitcoin because anything else would be too little of an income whereas bitcoin could go 2x or 3x and if you invest into other coins you could go as much as 10x, which nothing else could give it to you. Sure it is riskier but at least here you have as much right as the rich people.

[Granxis]

I think investing in Bitcoin is better than real estate right now. Due to the current pandemic situation, people rarely buy houses,
so it would be very difficult to sell houses in a situation like now. Moreover, house prices are very expensive, with the economic
crisis hitting the entire country. I think very few people can afford to buy a house. Then it is not a good choice for investing in Real
estate. Bitcoin can be purchased for as little as $ 10, so it's very affordable. So it's no wonder that in 2020 the popularity of Bitcoin
is getting higher, which means that many people have started buying Bitcoin this year.

I know that house prices are high in the United States, because of the corona virus, house prices should actually go up, because people would want to have more houses.
Owning a home or investing in cryptocurrency depends entirely on the social, economic, and cultural relationships of that person.
Young and single people do not want to own a house, but people who are married and have children want to own a house.

[SquallLeonhart]

Is it just me or are you guys scared of making these type of investments as well? I mean if I invest into a stock, that company could bankrupt and stock will worth nothing at all, if I invest into a real estate, something bad could happen to it, if I invest into gold but digitally via my bank, government could take over the ownership and give me whatever the worth is in fiat by printing money and making gold more valuable.

Anything could happen into any investment. However for some reason I feel safe with crypto, it doesn't have that type of trouble, in crypto you basically go with whatever you want and usually bitcoin will not go bankrupt or zero or anything, you will be safe and your money will gain value. I know others are not that scary neither but I just feel like that.

[South Park]

I don't know if real estate is declining here yet but I do think it'll come at some point and it's probably overdue in some places.

I was looking at house prices in certain parts of the UK and they've at least tripled in a lot of places in the past 20 years... Which seems quite a dramatic rise.

Real estate for the most part follows inflation, which is why it has been considered to be a good way to protect your wealth for a long time, obviously the market can also show distortions and it could be overvalued however a tripling of the price over the course of 20 years seems to be about right, governments are printing money thinking they can do this forever but sooner or later we will reach a breaking point and when that happens inflation will be completely out of control in which case the price of real estate will go up as well.

[Sapphire915]

I think there is no Real State decline here in our Country as of this year due to the increasing urbanization and expansion in the real state construction projects. The demand is expected to rise here and its really one great investment though the tax is a bit higher. On the other hand, Bitcoin is still the best investment when we are working here in Blockchain industry. And maybe, this issues are depending on the Countries that we live in and the kind of Law/Rules that we have.

[shoreno]

I think there is no Real State decline here in our Country as of this year due to the increasing urbanization and expansion in the real state construction projects. The demand is expected to rise here and its really one great investment though the tax is a bit higher. On the other hand, Bitcoin is still the best investment when we are working here in Blockchain industry. And maybe, this issues are depending on the Countries that we live in and the kind of Law/Rules that we have.

such a nice country/place to live on there because they always modernized it not unlike to some place that the development are slow .

its now 2020 but cities were still the same but the only good thing that they have is people that are sqautting or poor people that dont have thier own lots can still continue to stay or live  . another good thing is the demand of bitcoin on here versus real estate is much higher .

[Salauddin1994]

Yes real estate is good for the poor and helps to save them but everything goes down with the economy of the country and the poor become due to lack of adequate jobs this is not the case with bitcoin investments. Currently most of the population is turning to online work to overcome the crisis it is true that technology has not yet touched many countries but if bitcoin is controlled by the government it will be much easier to solve the problem.

[batang_bitcoin]

I don't understand those people that are trying to offer and sell me their real estate properties. I understand that we are in a crisis and the situation isn't doing better for everyone else. But their prices are erraneous and didn't declined. They are in desperate situation and won't pull lower the price for their real estate for sale. It's not the good time for me to buy in the specific area that I want, better to pitch in more for bitcoin just like the usual times.

Residential property prices from the primary market will never fall. Because a lot of construction materials are still imported and domestic supply is limited, property prices will not decline. In addition, the weakening of the currency against the dollar also had an effect. For second hand properties, the price may be below the market depending on the owner, but not with new projects. Even if the price does not go down, the developer will not increase the price at this time of year, a more feasible strategy is the ease of payment and installments.

The decline in buyers, occurred from the end user buyer segment for housing needs, due to the tendency to refrain from securing their daily needs in the midst of an economic condition shaken by the pandemic. Some buyers from the investor segment still have purchasing power, but still depend on the psychology of the investors themselves.

I do understand that prices will not fall but like what with the situation that we have, if they are in dire need of money or cash, they'll desperately sell their properties with a lower price to attract cash buyers and dispose the property while taking the money.
Excluding the process time and other tax works. I'd like to take the opportunity if there are sellers and they're under the market price but haven't seen any and it seems that in my area, properties aren't going that low.

[bits4books]

And again-an attempt to compare an apple and an orange.
How many uses does real estate have? Investment as such (land and housing are only getting more expensive), passive income (renting), the ability to live in this very house, the ability to run a small farm on your site. Yes, you can at least put a wind generator and be as Autonomous as possible. No wonder they say that "my home is my fortress".

And what can btc (or any other cryptocurrency) oppose to this? A couple of beautiful candles on the terminal screen, planted nerves from over-volatility? Let's not compare two conceptually different things, please.

[ampu]

Real estate is safer and if it is good real estate we can rent out and receive interest monthly. Real estate always plays an important role in any investor's investment.
Bitcoin has a higher risk despite its very high likelihood of price increases. Bitcoin storage has many problems such as hack attacks, lack of recovery characters ...

[Spaffin]

Real estate is safer and if it is good real estate we can rent out and receive interest monthly. Real estate always plays an important role in any investor's investment.
Bitcoin has a higher risk despite its very high likelihood of price increases. Bitcoin storage has many problems such as hack attacks, lack of recovery characters ...

And nevertheless, due to the high volatility of the cryptocurrency, as well as due to good coincidences, the cryptocurrency, namely Bitcoin, makes it possible to earn very big money. Of course, money can later be invested in real estate. Any money, as well as cryptocurrencies, they are today, and tomorrow they are not. But real estate always remains and can bring constant profit if it is rented out.

[bitcoinisbest]

Real estate is safer and if it is good real estate we can rent out and receive interest monthly. Real estate always plays an important role in any investor's investment.
Bitcoin has a higher risk despite its very high likelihood of price increases. Bitcoin storage has many problems such as hack attacks, lack of recovery characters ...

If somebody has only few thousand dollar then real estate would not be an option because you require a lot of money while investing in real estate and in bitcoin you can even invest few hundred dollars and can exit on booking your profits any times. real estate is fine when you have to stay in the house but just for investing, I will choose bitcoin over real estate due to various reasons.

[AjithBtc]

Real estate is safer and if it is good real estate we can rent out and receive interest monthly. Real estate always plays an important role in any investor's investment.
Bitcoin has a higher risk despite its very high likelihood of price increases. Bitcoin storage has many problems such as hack attacks, lack of recovery characters ...

Real estate is safe, but if the same isn't made on the right property the investor needs to bear big loss. With all forms of investment there is need for better analysis and risk. One needs to make a better planning and do the investment. Real estate investment requires big capital, which isn't affordable for all. With bitcoin the risk is high, but with any small denomination one can invest into it.

[Gozie51]

Real estate is safer and if it is good real estate we can rent out and receive interest monthly. Real estate always plays an important role in any investor's investment.
Bitcoin has a higher risk despite its very high likelihood of price increases. Bitcoin storage has many problems such as hack attacks, lack of recovery characters ...

I also fall with your idea that real estate can be more secured than bitcoin investment. The land does not depreciate in whatever form. From what I have noticed, the land investment is more rest assured because it is less volatile than bitcoin. And more in appreciation when you get more facilities around it. It process is gradual which is the reason people go into it.