Will it become a mainstream investment? Described by some as a ‘cult’, advocates claim that crypto is the future of finance and currency, whilst detractors claim that it’s nothing more than a fantasy that’s used to launder money by criminals and has a horrendous carbon footprint.
There’s probably a bit of truth to be found on both sides of the argument and whilst, yes, it’s certainly true that cryptocurrency has its dark side, there’s little doubt that it’s becoming increasingly mainstream in how it’s used, distributed and spent.
Are we now at the precipice of crypto going truly global?
Progress in crypto
As many have noted, the rise in crypto over the past few years reflects a desire for more decentralised finance and perhaps a move away from more traditional models.
Certainly, younger investors and people looking to invest rapidly decreasing generational disposable income have turned to crypto as a more exciting way of engaging with investment and markets.
That being said, it’s an incredibly volatile asset with huge booms and busts which are, to most intents and purposes these days, expected and priced in by many.
As an example of how many mainstream businesses are now looking to capitalise on its popularity, as noted by the New York Times, Thomas Olsen, a partner at Bain & Company, said “Most people agree that in the future — it might be 10 or 20 or years or it might be sooner — effectively all assets are going to be in a digital format”.
Indeed, many banks are now starting to accept Bitcoin and other crypto for deposits and other transactions, whilst Mastercard has said that it will allow banks and other merchants the ability to use its payment services to store crypto.
Crypto and property
So where does this relationship extend between crypto and property? Well, we’re finding property an extremely attractive and safe asset for those making their money in crypto.
Whilst crypto provides large returns very quickly, it can also be very volatile. Property, on the other hand, provides a steady and stable income, which means that the two complement each other well when both are used in an investor’s portfolio.
The vast majority of investors will advise you to protect yourself from risk by ‘diversifying’ your investments across a number of different classes. For example, splitting your money 33% in stocks, 33% in property and 33% in crypto, or half and half.
This means that you’re reducing the exposure you have to fluctuations in the market. Property in the UK provides incredibly good returns for such a stable asset, increasing on average by over 10% in value over the past 12 months alone.
Where property also has something of an advantage is that you can rent it out so you can earn money through rental income as well as capital appreciation from your property.
With crypto becoming more and more mainstream every single day it creates an opportunity for both crypto and property investment to work together in tandem and provide the best possible returns for those investing.
If you want to talk about the property investment side of things, you’ve came to the right place. Take a look through some of our available opportunities here and feel free to pick up the phone today!