Back To Blog

Bitcoin vs. Real Estate in 2019

Bitcoin won in 2017.

Real Estate won in 2018.

Who wins in 2019 and beyond?

2017 was the year of bitcoin (BTC-USD): the price surged from below $1,000 to a high of nearly $20,000. Meanwhile, 2018 has seen the price crater to ~$3,700 as of this writing. Given this enormous volatility, it is anyone's guess what 2019 will bring for the cryptocurrency market, and indeed many investors remain highly bullish on cryptocurrencies.

However, while we do not presume to know the short-term price movements in highly volatile, speculative cryptocurrencies or any other asset class, we are far more confident in allocating our hard-earned capital to an asset class that has stood the test of time as a proven investment vehicle: real estate.

Real Asset vs. Digital Ledger

Bitcoin is not a real asset and instead resides on a digital ledger, utilizing the blockchain technology. While the blockchain is currently disrupting and changing the world in numerous and exciting ways (and will likely continue to do so for the foreseeable future), individual cryptocurrencies are simply one means of exchange on the blockchain, thereby giving them a far less certain future.

Arguments in favor of bitcoin include its reliability stemming from its basis in numbers (i.e., it is as reliable as the laws of mathematics which govern our universe), its decentralizing impact on the global economy due to its independence from government control and being governed purely by the laws of supply and demand, and its very limited supply. As a result, it is viewed by many as a terrific alternative to the constantly inflated fiat currencies issued by governments across the globe, even being hailed by some enthusiasts as Gold 2.0.

Real estate is quite simply a piece of planet earth that combines land with a man-made structural improvement. As a result, it is a tangible asset that provides clear value to its occupier. Additionally, the nature of its value is limited, necessary, and flexible - giving it remarkable durability and stability in value.

Real estate is limited because the amount of land on planet earth is finite and only certain portions of the earth are suitable for various types of real estate (i.e., the Sahara Desert is not ideal for most types of farming).

Real estate is necessary because everyone in the world needs shelter in which to live, farmland for growing food, factories to produce goods, storehouses to keep surplus food and goods until needed, etc. Simply put: real estate is absolutely needed for the survival and prosperity of the human race and cannot be replaced.

Finally, real estate is flexible in that many buildings can serve multiple purposes with only a little or even no changes needed to the land or the structure and even when significant redevelopment is needed, it can still often be done in a profitable manner over the long run. As a result, even property that is currently allocated to a business enterprise that is no longer sufficiently profitable still possesses significant value due to its flexibility.

What do you expect to come out on top in 2019? Let us know on Instagram @castlesunlimited

For the original article in its entirety, visit