Bitcoin allows being more optimistic about the future as it requires less time, which is positive for mental health. Real estate cannot compete with Bitcoin, whose limited supply, censorship resistance, and lack of centralized governance make it an ideal hedge against inflation.
Leon Wankum, a financial economics student who wrote a thesis on Bitcoin (BTC) in 2015, recently discussed the benefits of using Bitcoin. He said it had helped him with his business by allowing him to manage and save money more efficiently.
Bitcoin has given him more self-confidence and more optimism about the future. Since it requires less time, he acts more consciously in the present, which is positive for his mental health.
Many people helped him when he was new to Bitcoin, which led him to share his positive experiences with real estate investors. He highlights the positive implications of adopting a Bitcoin standard, such as using it as a unit of account.
Wankum believes Bitcoin is better than an exchange-traded fund (ETF), one of the most prominent savings vehicles over the last few decades. In addition, he considers that BTC may have a positive impact on the retirement savings of investors.
Bitcoin Offers Many Advantages to Real Estate Investors
Since Bitcoin is a digital property, estate investors should find it attractive as it capitalizes on scarcity. Those whose business is to acquire and construct physical property should hold BTC, as it is a digitized asset.
In 1995, nobody would have thought that most retail stores would include a digital business in the form of a website. The similarities between Bitcoin and real estate make it recommendable for those investors to own the crypto asset.
That comparison allows us understand new and complex technologies like Bitcoin better, viewing the importance of adapting to that technology.
One of the many things in common between real estate and Bitcoin is that they act as a store of value. Owning real estate generates income and can serve as a means of production but now has another purpose.
Over the last few decades, keeping money in a savings account has proven insufficient to preserve its value. That has led many wealthy individuals, pension funds, and institutions to invest a portion of cash in real estate.
However, investors have realized that real estate cannot compete with Bitcoin as a store of value. Its limited supply, portability, durability, fungibility, censorship resistance, and lack of centralized governance make it an ideal hedge against inflation.
Users can send Bitcoin funds anywhere at the speed of light and at a low cost. In contrast, real estate is easy to seize by the authorities and hard to liquidate in times of crisis.
During the war with Russia, many Ukrainians turned to Bitcoin to protect their wealth and carry their money safely. However, they had to leave behind their largely destroyed physical properties, with no hope of recovering them.
Bitcoin is trading at around USD 19,216 and has accumulated a 0.1% loss over the last 24 hours. While its daily trading volume is above USD 21.81 billion, its market capitalization is about USD 368.28 billion, according to CoinGecko.
By Alexander Salazar
