Comparing Real Estate Investing with Bitcoin and the Stock Market

Bitcoin, real estate, and cryptocurrency investment are the most popular and lucrative ways to invest money. Some say it’s even more lucrative than opening a savings account at the bank. There are, however, great risks that sometimes come with great rewards. Below we list the pros and cons of all three investment types.

Real Estate

Historically real estate investment is really a great way to invest one’s money. There are a few different real estate investment strategies that one can follow, like flipping and buying, holding and renting.

One of the pros of investing in real estate is that most real estate appreciates over time. Mostly real estate appreciation rates are far better than that of inflation. Another pro is that real estate has unique tax benefits. These tax benefits allow investors to grow their wealth over time. There are tax benefits for real estate investors, as well as rental income.  Real estate can also provide a steady cash flow for investors. Another pro is that real estate investment and rental income builds equity. Rental income goes towards the loan or purchase price of the property, Ultimately the tenant pays off the cash investment. Real estate gives investors more control over their overall investments than that of Bitcoin or stock markets. Another pro is that real estate investments keep up with inflation. As prices of everyday expenses rise, like groceries, so does rental income and property value.

The cons of real estate investing is that it can get problematic with tenants, this could cost money and time to investors. Real estate is also a long term investment. It could take a few years before investors see significant growth in their investments. It also does not provide quick liquidity if needed. One’s money is stuck in the investment. Real estate requires money to make money. Real estate can be expensive and more costs like lawyers fees should be expected.


Cryptocurrency is a gamble, in any sense. There is potential for huge returns on one’s investment into cryptocurrencies like Bitcoin. This is volatile and there are risks involved, however people with a significant amount of money or a little bit of cash can invest in Bitcoin. 

The pros of Bitcoin is that there is a potential for massive returns on one’s investment. A $1000 investment in Bitcoin in 2013 would be worth over $400 000 today. Those odds make people really consider investing in Bitcoin. Another great thing about Bitcoin is that investments, however risky, can be cashed out faster than real estate investment or stock market investment. Bitcoin has an increased liquidity compared to other investment methods. Investors in Bitcoin can almost instantaneously sell their Bitcoin for dollars and have much more liquidity. Another pro of Bitcoin investing is that one can exactly see what’s happening with the network and it is slightly more predictable. Investors can more accurately evaluate the product and determine their investments accordingly.

The cons of Bitcoin is that it can be mismanaged. Investors need to frequently evaluate their investments and change if needed, investors need to look into the investment and its background. There can also be a shortage of resources, cryptocurrencies can run out of money or mismanage their monies leaving investors in trouble. Bitcoin is much more volatile compared to real estate or stock market investments.

Stock Markets

Overtime stock markets have delivered generous returns to investors. Sometimes stock markets can go down and investors can lose a lot of money. There is potential for big risks and big returns, profits and losses.

The prod of stock market investing is that it takes advantage of the growth of the economy. As the economy grows so do corporate earnings. This is another great way of staying ahead of inflation, stock markets have had more growth than that of the inflation rate. Another pro is that stock markets make it easier to buy shares in companies. Stock market investing also allows for quick liquidity as it can be sold quickly and easily.

The cons of stock market investing is that it can be high risk. An investor can lose their whole investment if stock markets plummet. It takes time to research which company one would like to buy shares of. Stock markets are very volatile and rise and fall tremendously quickly.

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