Which is Better Investment Bitcoin or Commercial Real Estate?


2021 has presented a new opportunity. The year is thought to be profitable for investments. But choosing between the two most popular and desirable investment options can be confusing.

The uncertainty developed here is because of the coronavirus pandemic, which has made the decision between real estate investments and bitcoin Investments difficult.

To make the right move, you need to have adequate information and idea about both to ensure you enjoy a great investment for years to come. In contrast, if you make a wrong move, you can lose everything.

For years real estate investment has been the top choice for people to put their money in and earn passive income. In fact, studies have revealed that about 90% of wealthy people have acquired all their wealth through real estate investments.

However, the real estate sector fell down about 42.3 % value during the US housing market crash in 2008. But since then, it has grown considerably. In fact, it was found that in the year 2019, the real state returns increased by 29%.

On the other side, bitcoin is a risky asset in the current market space. Given the rise in its value over the last decade, bitcoin has attracted many individuals and investors globally to make their investment, but the pandemic has now changed things.

So this leads to the question of which is better real estate investment or bitcoin. Before we move ahead to the answer, you must understand certain things about bitcoin.

What is bitcoin?

Bitcoin is a digital cryptocurrency that a group or individual created in 2009 under the pseudonym Satoshi Nakamoto.

Bitcoin just like the regular currency can be used to buy things from the merchants who accept bitcoins in the payment forms.

Bitcoin can be subdivided into different units known as satoshis, wherein the value of one satoshi is 0.00000001 bitcoin.

The bitcoins can be created through the mining process, which involves individuals solving complicated maths puzzles. The amount is then stored in the digital wallet, which can be present in the user’s computer, smartphone, or cloud. The user can save money, receive or send bitcoins and pay for a commodity using their wallet.

Is bitcoin a good investment?

The demand for bitcoin in the last few years has grown tremendously. It is because of certain reasons which include

1. Low entry barriers

As mentioned earlier, a bitcoin can be subdivided into smaller parts. This means you can start purchasing bitcoins for as little as $100.

2. Rising prices

There has been a tremendous increase in the interest in bitcoin which is why more institutional investors and individuals rushed to invest in cryptocurrency. If the studies are to be believed then the price of bitcoins will surpass about $100,000 in the few years.

3. Stability

Bitcoin is the first cryptocurrency made available to mankind. It has proven itself to be a safe option.

Real estate investment Vs. Bitcoin

When it comes to deciding between real estate investment and bitcoin, then there are certain reasons why bitcoin might not be the right investment choice for 2021.

1. Bubble asset

An asset has typically given the name bubble its intrinsic value falls too low. The sharp increase in the price of bitcoins over the last few years is based solely on speculations but not the fundamentals.

2. Security issues

As bitcoin is stored digitally, it is a great risk. There are risks from hackers, glitches, etc. For example, if a hacker gets access to the investors’ private encryption keys, he will have the chance to make the transfer easily.

Besides, hackers can target bitcoin exchanges through thousands of accounts. The biggest hacking event took place in 2014. Mt. Gox faced a loss of about $460 million worth of bitcoin which was stolen by a hacker.

3. Extreme volatility

It is because of the extreme vitality that bitcoin is a highly risky investment. For example, in the year 2017, the value of bitcoin rose from about $1000 to a high of $19783 in December. While By April 2018, the value degraded to below $7000.

Government regulations

Bitcoin is generally seen as a rival to the traditional government currency. Besides digital currency is also used for tax evasion, money laundering, black market transactions, and other illegal activities.

Thus, the government can regulate, or ban the use of bitcoins. So it is essential to keep an eye on the regulations from the bodies like the Commodities and Futures Trading Commission, IRS, etc.

The reasons mentioned here clearly state that investing in bitcoin in 2021 will be of no use and, in fact, can lead to a great loss.

Invest in real estate in 2021

In contrast to cryptocurrency, the real state has always been a reliable way of investing money, even during the pandemic. Research conducted about the market analysis of real estate during the pandemic shows that there has been an active market for real estate in 2020 despite all the hardships people were facing.

In fact, it accounted for about 67% of the total housing sales. It can thus be said that the ongoing uncertainties make housing one of the safest long-term investment options. Here see why you need to invest in real estate in 2021.

1. Tangible assets support

You must know that real estate investments are always backed by land or physical structures.

2. Source of cash flow

By making the commercial real estate investment in rental properties, one will have access to consistent cash flow in the form of monthly income. The income you will get will be based on your location and the type of property you have invested in.

Thus, it is vital to perform a deep market analysis to identify the top locations for investment that can offer good passive income over the next years. Besides, make sure to use online tools and calculators to analyze the property’s performance before purchasing.

3. Hedge against inflation

Rent and housing values have typically increased with direct proportion to inflation.

4. Tax benefits

The real estate investors get to enjoy tax deductions like insurance, depreciation, commission, repair, etc. However, make sure to keep an eye on the law system as there have been some recent changes that can change your mind.

5. Mortgage rate

Due to the tough pandemic situation, the mortgage rate in the year 2020 has dropped historically low. This means that if you are venturing into the US housing market you need not have t pay huge sum for mortgage.


Bitcoin is a speculative asset that can offer incredible rewards, but it comes with a greater risk. When you invest in bitcoins, you must do it with utmost caution. But remember, at the end of the day, real estate will offer you reliability and a guaranteed investment opportunity that helps bring passive income.

In fact, the good news is you can make use of bitcoins to purchase real estate. By combining both the Investments, you can gain great benefits, but this will require the assistance of a professional.

Private Capital Investors has adequate expertise to offer proper support. They have expert professionals to guide your entire process. They will bring forward great deals and opportunities to guarantee you make the best of your investment.

Want to learn more? Get in touch with us today.

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