Discover more from David’s Substack (The Bitcoin Consultancy)
Six Reasons Why Bitcoin Is Better Than Real Estate As A Store of Wealth
Real estate is the primary form of household wealth around the world, while Bitcoin is a radical new asset class that isn’t widely accepted as a store of value.
Yet Bitcoin is a fundamentally better store of value than real estate, and here are six reasons why:
1: Bitcoin is more portable than real estate: Bitcoin can be sent cheaply and near-instantly around the world. A house… cannot.
2: Bitcoin is more fungible than real estate: One Bitcoin is a good as any other Bitcoin. A house…. is not.
3: Bitcoin is more durable than real estate: Bitcoin requires zero maintenance. You can keep it forever etched on a steel plate. A home requires regular upkeep.
4: Bitcoin is more scarce than real estate: When home prices go up, so does home construction. But there will never be more than 21 million Bitcoin.
5: Bitcoin is more divisible than estate: Bitcoin is infinitely divisible. A house…is not.
6: Bitcoin is easier to spend than real estate: 6% of a home sale is spent on transaction costs. Bitcoin can be sold on many exchanges for a small fee.
While the $33 trillion US housing market won’t disappear, to the extent that housing is used as a store of wealth, Bitcoin will eventually capture a large portion of its market cap.