Real estate investment is often considered a better alternative to cryptocurrency for a variety of reasons. Here are some of the main reasons that help distinguish real estate investments as a more stable and reliable form of investment in comparison to cryptocurrency.
Tangible assets
Real estate is a tangible asset that one can see, touch or even physically occupy. This makes it a more concrete and tangible form of investment compared to cryptocurrency, which is merely a digital asset.
Fundamental value
Real estate is valued depending on factors such as location, size, condition, and demand. These are all factors that are relatively easy to understand and assess, which gives real estate a fundamental value that is not easily prone to market speculation or manipulation.
Steady returns
Real estate investments can provide steady returns in the form of rental income and appreciation of property value over time. On the contrary, cryptocurrency is famed for its extreme price volatility and the likelihood of encountering significant losses over a short span of time. The ideal example would be someone choosing to invest in real estate such as John Keells Properties, which comes from an industry giant among property developers in Sri Lanka.
Regulatory oversight
Cryptocurrency market – Photo by Sajad Nori on Unsplash
The real estate market is generally subject to more regulatory oversight compared to the cryptocurrency market, which can grant an additional layer of security and stability for investors.
