What is the better investment?
When it comes to investing, opinions differ. Some swear by cryptocurrencies such as Bitcoin, others rely on proven values such as real estate. But which is really the better choice? In this article, I take a closer look at both asset classes, show advantages and disadvantages and draw an honest conclusion from my own experience.
Bitcoin: The digital revolution
Since its introduction in 2009, Bitcoin has had an unprecedented success story. Within a few years, the ridiculed Internet money became a multi-billion dollar asset store, which has now also reached institutional investors.
Benefits of Bitcoin
✨ High return opportunities: Anyone who started early was able to achieve incredible profits.
🚀 Innovative technology: Blockchain and decentralization are considered to be pioneering.
🔒 Inflation protection: With a fixed maximum supply of 21 million coins, Bitcoin is theoretically resistant to inflation.
🌐 Cross-border access: Bitcoin has no country borders or bank opening hours.
Disadvantages of Bitcoin
⚠️ High volatility: Price fluctuations of 20% in just a few days are not uncommon.
🕵️ ♂️ Regulatory risk: Legal restrictions or bans can come suddenly.
🤔 No intrinsic value: Bitcoin generates no cash flow and is completely driven by supply & demand.
🚫 No physical security: Unlike real estate, you can't “attack” Bitcoin. For many, this is a psychological disadvantage.
Real estate: The classic among tangible assets
Real estate has always been considered a safe bank. Whether as a pension plan or to build up wealth: Anyone who invests in concrete gold builds on stable, tangible value with real benefits.
Benefits of real estate
💰 Current cash flow: Rental income provides regular income.
🌫️ Stability of value: Real estate rarely loses much in value.
⚡ Leverage effect through debt capital: You can build up wealth with the bank's money.
📈 Inflation protection: Rents and real estate prices usually rise with inflation.
🌟 Tax benefits & subsidies: Especially in Austria and Germany.
👍 High social & emotional value: Home ownership is often associated with security, control and quality of life.
Disadvantages of real estate
🚧 Getting started: You need at least a few thousand euros and/or good credit rating for the foundation stone.
⌛ Expenses & Responsibility: Rental, Maintenance, Administration, Legal...
🚑 Illiquidity: You can't “get rid of” a property as easily as you can get rid of a Bitcoin.
🔢 Location risk: The success of your investment depends on the location.
Bitcoin or real estate? My practical conclusion
I've been investing in real estate for 16 years and started investing in cryptocurrencies as well 9 years ago. I was fascinated by the technology and I still am today. For me, Bitcoin is an exciting addition to my portfolio — like hot chilli in investment stew. It is volatile, exciting, sometimes risky — but also promising for the future and past performance also speaks for itself.
When it comes to security, calculable cash flow and predictable wealth accumulation, there is no way around real estate for me, as I did in my Spiegel bestseller “The Scream for Prosperity” Describe in detail. In my opinion, real estate is unbeatable, especially when it comes to retirement planning. Real estate offers stability, tax advantages and the opportunity to build up large assets with the money of others (bank, keyword: debt capital).
In addition, I can touch, develop and strategically optimize real estate. I can renovate them, adjust the floor plan, increase rent or depreciate them for tax purposes. With Bitcoin, for me, it is more of a hope that the price will rise. It's as different as day and night. Still, I don't want to miss cryptos in my portfolio.
Bitcoin vs. real estate - My tip
Invest broadly and thus diversify your portfolio. Real estate as a stable foundation that will certainly make you a millionaire for decades and Bitcoin as a dynamic addition with incredible opportunities. In this way, you benefit from both worlds and create a crisis-resistant, growth-oriented portfolio.
And most importantly, understand the products you're investing in. Get informed, exchange ideas with others and make up your own mind.
If you want to start real estate, get my book or join my free Immo Mentor Community: www.derimmomentor.com/community
If you want to finally get started with Bitcoin, 21bitcoin gold is the right place for you.
About the author
Tom Urbanek is a multi-entrepreneur, real estate investor in Austria and Germany, Spiegel-Bsteseller book author, speaker and has also been investing in cryptocurrencies himself since 2016.
Here you can find his latest book”The cry for prosperity“And here is his YouTube Channel for even more knowledge about real estate investments.
