Property vs Bitcoin

30th July 2021

By Will Leyland

Cryptocurrency probably entered the zeitgeist about five years ago now, or at least it feels around that long. Most people will have their experiences of it one way or another.

We’ve all been bored to death by somebody trying to explain what it is when we either already understand it or simply don’t care enough to have it explained to us by the pub bore. Some of you reading this may have invested in crypto and either made a fortune or lost some money.

We’re not here to tell you whether or not you should invest in cryptocurrencies or not, simply to draw some comparisons and assess the pros of cons against investing in property.

We’re now seeing the average age of property investors drop and with that we get asked questions of this nature quite a lot, so we’ve decided to put something together for you.

Bitcoin

We’ve said Bitcoin, but really, we’re talking about any of the mainstream cryptocurrencies. In a nutshell, cryptocurrencies are digital currencies that are secured by cryptography - meaning that they’re nearly impossible to counterfeit or spend twice. Most are run on decentralised networks known as the blockchain, which is a network of computers that keep a ledger of transactions which are then encrypted.

Essentially, rather than a bank having one single ledger that they update, blockchain means that a secure network of users update the ledger of who has what, and it makes a much more secure and decentralised method.

Cryptocurrency has enormous potential, and we can see that in recent rumours whereby the UK government are exploring creating their own UK cryptocurrency. It has become more mainstream over the years and companies including Tesla and many investment companies are now accepting cryptocurrency as payment, as well as investing in it.

If you owned £100 worth of Bitcoin, for example, in 2018, it would now be worth £1,000. The long-term potential is huge, but as an asset it is incredibly volatile and has the potential for enormous peaks and drops.

As an investment, file this one under ‘pretty damn risky’. That’s not to say that if you’ve got the money to invest and can hold for a few years you won’t make good money, but there’s an equal chance you could lose an awful lot too.

Property

In comparison, property can be considered a much less risky investment and represents one of the safest investments you can make, save for government bonds or an ISA.

Whilst property, in general, is more restrictive to get into because of the entry price, the security that it offers is broadly unmatched when we consider gains and profits.

If you can put together enough money for a deposit on a buy-to-let property, then the rewards are good. For example, year-on-year price increases even just from last year show a 10% increase in value across the UK, and 15% just in the North West.

What property also offers, however, aside from strong returns and safety, is the opportunity to create a passive income through rent, as well as the chance to accrue an increase in value.

Say, for example, you’d invested £25,000 in Bitcoin 1 year ago, that price would have gone through the roof before crashing back down again, whereas a property worth £100,000 would now be worth £110,000 and more than likely earning you about £600 per month in income too.

Whilst property certainly doesn’t offer the chance to ‘get rich quick’ in the same sense, what it does offer is a relatively safe and profitable place to put your money that can be used to make a comfortable life for yourself with very little effort.

If you’re interested in investing in property, why not take a look through our current investment opportunities here!

Did you find this article helpful?

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Property vs Bitcoin

30 July 2021

Cryptocurrency probably entered the zeitgeist about five years ago now, or at least it feels around that long. Most people will have their experiences of it one way or another.

We’ve all been bored to death by somebody trying to explain what it is when we either already understand it or simply don’t care enough to have it explained to us by the pub bore. Some of you reading this may have invested in crypto and either made a fortune or lost some money.

We’re not here to tell you whether or not you should invest in cryptocurrencies or not, simply to draw some comparisons and assess the pros of cons against investing in property.

We’re now seeing the average age of property investors drop and with that we get asked questions of this nature quite a lot, so we’ve decided to put something together for you.

Bitcoin

We’ve said Bitcoin, but really, we’re talking about any of the mainstream cryptocurrencies. In a nutshell, cryptocurrencies are digital currencies that are secured by cryptography - meaning that they’re nearly impossible to counterfeit or spend twice. Most are run on decentralised networks known as the blockchain, which is a network of computers that keep a ledger of transactions which are then encrypted.

Essentially, rather than a bank having one single ledger that they update, blockchain means that a secure network of users update the ledger of who has what, and it makes a much more secure and decentralised method.

Cryptocurrency has enormous potential, and we can see that in recent rumours whereby the UK government are exploring creating their own UK cryptocurrency. It has become more mainstream over the years and companies including Tesla and many investment companies are now accepting cryptocurrency as payment, as well as investing in it.

If you owned £100 worth of Bitcoin, for example, in 2018, it would now be worth £1,000. The long-term potential is huge, but as an asset it is incredibly volatile and has the potential for enormous peaks and drops.

As an investment, file this one under ‘pretty damn risky’. That’s not to say that if you’ve got the money to invest and can hold for a few years you won’t make good money, but there’s an equal chance you could lose an awful lot too.

Property

In comparison, property can be considered a much less risky investment and represents one of the safest investments you can make, save for government bonds or an ISA.

Whilst property, in general, is more restrictive to get into because of the entry price, the security that it offers is broadly unmatched when we consider gains and profits.

If you can put together enough money for a deposit on a buy-to-let property, then the rewards are good. For example, year-on-year price increases even just from last year show a 10% increase in value across the UK, and 15% just in the North West.

What property also offers, however, aside from strong returns and safety, is the opportunity to create a passive income through rent, as well as the chance to accrue an increase in value.

Say, for example, you’d invested £25,000 in Bitcoin 1 year ago, that price would have gone through the roof before crashing back down again, whereas a property worth £100,000 would now be worth £110,000 and more than likely earning you about £600 per month in income too.

Whilst property certainly doesn’t offer the chance to ‘get rich quick’ in the same sense, what it does offer is a relatively safe and profitable place to put your money that can be used to make a comfortable life for yourself with very little effort.

If you’re interested in investing in property, why not take a look through our current investment opportunities here!

Will Leyland

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