For many investors, ‘Cryptocurrency’ was expected to replace conventional investment portfolios for over a decade. The tangible assets in the market will be on the backburner. The latest slump in the value of Bitcoin has hit almost every cryptocurrency that was ballooning for months, sending shockwaves to many and setting a negative trend that has propelled investors to rethink investing in crypto.
Why Invest in Real Estate?
Instead of bitcoin, investment in real estate still stands as the most viable option present in the market. Unlike bitcoin, one thing uncontended about investment in real estate is that the real estate sector cannot vanish from planet earth. This factor makes it the primary reason people are always keen to invest in the real estate sector due to its tangible nature. History is a testament that immoveable property has always remained a significant recipient of investment for many due to the quick returns. Therefore, whatever the case or new trend may be, the importance of the real estate sector cannot be relegated.
Various compelling reasons put the real estate sector above bitcoin or any other cryptocurrency for investment.
Value Addition in Real Estate
One of the foremost aspects that put real estate above bitcoin is the factor of value addition.
Value addition refers to the concept in which the value of an asset can be easily increased by making minimal improvements. In this regard, real estate corresponds in the best manner to value addition.
Explaining this concept through a simple phenomenon – suppose there is vacant land with a value of its own. Suppose the landowner decides to construct a residence or a commercial building on that vacant land. In that case, it will correlate to value addition since a landowner will be taking rent from a tenant or he will be running a commercial enterprise. Airbnb models are the best example of value addition in real estate.
In contrast to this, the value addition in bitcoin is minimal. Most of the time, cryptocurrency investment is based on speculations, and their exchange rate is continuously oscillating.