Bitcoin vs. Real Estate: which is the smarter investment?


Leverage against inflation

After the markets have quickly recovered after the big Corona crash in March 2020, and 2021 has been quite a good year for investing, the situation has changed in 2022. It has become obvious, that inflation will be a big topic. At the same time, the war in Ukraine as well as the long-term impacts of the pandemic are expected to reveal their effects on the markets during the months to come. As an investor, you have to make decisions in order to find the best options for preserving or increasing your wealth.

Investing in real estate

When it comes to investing, real estate has been a safe haven for decades. Many experts think that there is another bubble building up like in 2007 and that prices might crash this year. As we have seen after the crash of the market in 2008, prices have recovered and reached new all time highs. So from an investment perspective, this is still a safe investment if you make it a long-term investment and are willing to wait some years until it highly pays off. Time has shown that the real estate market recovers fast.

Crypto market

Are these investments safe in 2022? If you are familiar with the market cycles in the crypto market, you probably know that there is bitcoin, the huge predominant cryptocurrency. All the other coins, called altcoins, follow bitcoin wherever it goes. At the moment we are finding ourselves at the end of a bitcoin bull run which takes place about every four years. After one last price rally that is very likely to take place during spring 2022, the bitcoin price will go down and the altcoins will follow.

If you want to invest in cryptocurrency, the best time to do so will most likely be at the end of 2022, when prices will be a lot lower than now. Investing in crypto should be seen as a project of at least four years. This is because the market cycle usually takes four years. Also keep in mind, that we are facing lengthening cycles that will probably extend even more in the next bull run. So, if you have patience, a crypto investment in bitcoin and some solid altcoins will probably pay off during the next years. Especially if you buy at low prices, you can easily make several hundred percent profits in this market.

Real Estate investments are considered to be safer than crypto investments

Third alternative: Stocks

Stock market investments have been a great idea during the last years if you have invested in assets like Tesla or Amazon. Also in the stock market there has been a huge recovery after the crash in March 2020 as many assets have reached new all time highs. This is why experts expect a significant crash this year, especially as the stock prices have developed their own dynamics and in many cases do not reflect the development of the company any more. If you are thinking about investing in stocks, either you invest now with a longer time horizon or you wait how things develop during the next months before you get exposure in the stock market.

Safest investment for long-term gains

What exactly is the best investment for you is an individual question regarding your investment liquidity. In general bond funds, dividend or value stocks as well as real-estate are regarded to be the safest investment for long-term gains.

Frequently Asked Questions

Written by:

Bernadette Bergmann-Ayari, Guest Writer

Bernadette is a free author and crypto enthusiast based in Germany. She loves writing about the crypto market and investment topics.

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