Bitcoin vs Real Estate – Which Is the Better Investment?

04/25/2025

Tech Cre

Bitcoin and real estate are two vastly different investment options that often spark debate among investors. One is a digital cryptocurrency born in 2009, and the other is a tangible asset class that has built wealth for centuries. When comparing Bitcoin vs. real estate, it’s not a straightforward battle of which is “better” – each excels in different areas. In fact, savvy investors are increasingly considering the merits of both in their portfolios.

Bitcoin has even been described as “property rights in cyberspace,” as Michael Saylor famously put it. In other words, owning Bitcoin can be seen as owning a piece of digital property that you fully control. On the other hand, real estate represents physical property ownership – land and buildings with utility and intrinsic value. Brevitas, as a commercial real estate platform that embraces innovation, recognizes the unique value propositions of both these assets.

Let’s break down how Bitcoin and real estate stack up across key factors like maintenance, liquidity, risk, growth, and diversification. By understanding these differences, you can see why many investors conclude that you might benefit from owning both Bitcoin and real estate.

Bitcoin vs Real Estate: Key Differences

Maintenance and Management

Real Estate: When you own real estate, you’re responsible for its upkeep. Houses and commercial properties require maintenance – from fixing leaky roofs to dealing with tenants and property taxes. Managing a property can be hands-on work or require hiring property managers, which eats into your returns. There are ongoing costs (repairs, insurance, utilities) and time commitments to keep real estate in good shape.

Bitcoin: Bitcoin, by contrast, doesn’t involve physical maintenance. There’s no building to repair or tenants to manage. Once you purchase Bitcoin, holding it simply means securing your digital wallet (keeping your private keys safe). The “maintenance” for Bitcoin is mostly about cybersecurity – using safe storage practices like hardware wallets – rather than physical labor. This makes Bitcoin essentially a “set it and forget it” asset in terms of upkeep. You won’t get a 3 A.M. call about a broken pipe from your Bitcoin investment!

Liquidity and Accessibility

Real Estate: Real estate is relatively illiquid. Selling a property can take weeks or months, involving listing the property, finding a buyer, and going through escrow and paperwork. Transaction costs are high (think 5-6% broker commissions, closing costs, and possible taxes). You also can’t sell just a fraction of your property easily – it’s usually all or nothing (unless you refinance or have fractional ownership arrangements). This lack of liquidity means your money is locked in the asset until you can find a buyer at a fair price.

Bitcoin: Bitcoin trades on global markets 24/7, which makes it highly liquid. You can sell (or buy) Bitcoin anytime, even on weekends, with a few clicks on an exchange. Settlement is near-instantaneous. Need quick cash? You could convert a portion of your Bitcoin to dollars within minutes. Bitcoin is divisible down to 100 millionth of a coin, so you can sell tiny fractions if you want. This ease of buying and selling gives Bitcoin a big edge in accessibility – there are low barriers to entry (you can start with even $100 or less) and exit.

Risk and Volatility

Real Estate: Real estate is generally considered a stable, lower-volatility investment. Property values tend to move gradually. It’s uncommon for a well-chosen property to lose half its value overnight. That said, real estate is not risk-free. Property markets can and do decline (for example, the 2008 housing crash saw significant price drops). Owning real estate also comes with specific risks: a tenant could damage the property or stop paying rent, natural disasters can strike, or a neighborhood can decline over time. If you take on debt (a mortgage) to buy real estate, you introduce leverage risk – a downturn could leave you owing more than the property is worth. Still, the volatility of real estate prices is modest compared to Bitcoin’s wild swings.

Bitcoin: Bitcoin is known for its high volatility. It’s common to see Bitcoin’s price move 5-10% in a single day, and it has experienced drops of 50% or more within months during past market crashes. As a relatively new asset, it faces regulatory uncertainties and can be influenced by market sentiment and macroeconomic news. Security is another consideration – while Bitcoin itself hasn’t been hacked, individuals can lose coins to exchange hacks or lost passwords if not careful. Despite these risks, many investors accept Bitcoin’s volatility as the trade-off for its high growth potential. You should be prepared for a bumpy ride: the value of your Bitcoin investment can fluctuate dramatically in the short term.

Growth Potential

Real Estate: Real estate generally offers steady, modest growth. Historically, property values appreciate in the low single digits percentage-wise per year on average (often in line with inflation plus a couple percent). The big advantage is that real estate can produce income while it grows – through rent. This cash flow means you’re getting returns even if property prices aren’t skyrocketing. Additionally, using leverage (borrowed money) can amplify your gains: for example, if you put 20% down and the property value rises 5%, your return on the cash invested could be 25%. Over decades, a well-located piece of real estate can significantly appreciate in value, all while providing interim rental income. It’s a slow-and-steady wealth builder.

Bitcoin: Bitcoin’s growth potential has been extraordinary. In the span of a little over a decade, Bitcoin went from essentially worthless to trading for tens of thousands of dollars per coin. Early adopters saw exponential gains. Even in recent years, Bitcoin has often outperformed traditional assets during bull markets. The reason is its scarcity – only 21 million Bitcoin will ever exist. As Michael Saylor points out, “The reason Bitcoin is magical is because there’s only 21 million.” No matter how much demand increases, no additional supply can be created beyond that cap. By contrast, “I can create more real estate in New York City. I can create more cars… Given enough money and time, I can create infinite of any of them,” Saylor notes, highlighting that most assets (even land, through development or building upward) can expand in supply, but Bitcoin cannot. This absolute scarcity, combined with growing mainstream adoption, gives Bitcoin explosive upside. Of course, high growth potential comes with high volatility – Bitcoin can just as easily crash 50% as surge 500%. Investors in Bitcoin are betting that its limited supply and increasing demand will continue to drive long-term appreciation far above traditional assets.

Diversification and Role in a Portfolio

Real Estate: Real estate has a unique role in a portfolio – it’s a tangible asset that often moves independently of the stock market. A property’s value is influenced by local economic factors, interest rates, and its income production, rather than day-to-day investor sentiment. Because of this, adding real estate to an investment portfolio can improve diversification. It tends to be an inflation hedge as well; rents and property values often rise when the cost of living rises. That said, investing heavily in one property or one city is not very diversified – it’s important to spread real estate holdings across different locations or sectors (or use real estate investment trusts (REITs) for broader exposure). Within an overall portfolio, real estate can provide stability and income that balance out riskier holdings.

Bitcoin: Bitcoin is increasingly viewed as a diversifier too, albeit a volatile one. Its price movement doesn’t strictly follow stocks or real estate trends. Bitcoin’s value is driven by factors like global adoption, tech innovation, and monetary policy sentiment (e.g., as an inflation hedge or alternative to gold). This means holding a small percentage of Bitcoin alongside more traditional investments could improve your portfolio’s risk-adjusted returns – the idea being that when stocks or real estate are flat or falling, Bitcoin might be rising (or vice versa). Bitcoin also diversifies the currency aspect of your wealth: it’s not tied to any single country’s economy. However, because it’s high volatility, the key is moderation. Many financial advisors would suggest keeping Bitcoin to a reasonable allocation (e.g., 1-5% of a portfolio) so that it can boost returns without jeopardizing the whole portfolio. In short, Bitcoin and real estate serve very different purposes – one is a hyper-growth speculative asset, the other a stable, income-producing asset – and that difference can actually be harnessed to create a more balanced investment strategy.

Advantages of Real Estate Investing

Beyond the head-to-head comparison above, it’s worth highlighting a few core advantages that real estate offers as an investment. These are areas where real estate particularly shines:

Leverage: Real estate is one of the few investments that you can heavily finance. Banks will lend you a large portion of a property’s value at relatively low interest rates. This means you can control a big asset with a smaller amount of money down. If the property value increases, your return on the cash you invested is magnified. Leverage can significantly boost wealth-building (though it can amplify losses too, so it must be used prudently).
Cash Flow: Income from rent is a major draw. A rental property can generate monthly cash flow if managed well. This means even if the property’s value isn’t skyrocketing, you’re earning a return in the form of rental income. Over time, as rents potentially rise and mortgage payments (if any) stay fixed, your cash flow tends to increase. Bitcoin, by contrast, doesn’t inherently produce cash flow – its return is purely from price appreciation.
Long-Term Appreciation: Real estate tends to appreciate over the long term. Population growth and the limited supply of land in prime locations drive property values upward. While there are occasional market corrections, historically real estate prices in many areas have followed an upward trajectory across decades. Holding real estate for the long haul can result in substantial gains, especially when combined with the power of leverage and reinvesting your rental profits into improvements or additional properties.
Tax Advantages: Property investors enjoy several tax benefits. For example, the tax code allows you to depreciate the value of buildings (even if they actually appreciate), which can shelter a portion of your rental income from taxes. Many expenses related to managing property are tax-deductible. When you sell, you can sometimes defer capital gains taxes by using a 1031 exchange (rolling the proceeds into a new property). These tax incentives mean the effective returns on real estate can be higher than they appear, after you account for tax savings. Bitcoin, on the other hand, doesn’t get special tax breaks – in many countries it’s taxed like a stock or commodity, with no depreciation or deductions.

Bitcoin-Backed Income: STRF and STRK

Innovations in the financial markets are also creating products that blend Bitcoin with more traditional investment features. A notable example is MicroStrategy’s preferred stock offerings, called STRK and STRF. MicroStrategy – the publicly traded company led by Michael Saylor – has amassed over 500,000 BTC on its balance sheet as of 2025, effectively making the company a huge proxy for Bitcoin. To raise funds for even more Bitcoin purchases (and cater to income-focused investors), MicroStrategy issued two series of preferred shares that are indirectly backed by its Bitcoin holdings:

STRK: This was the first series (nicknamed “Strike”). It offers an 8% annual dividend. What makes STRK unique is an option to convert into MicroStrategy common stock if the stock price hits a certain high threshold (essentially giving holders a potential upside bonus if Bitcoin – and thus MicroStrategy’s stock – soars). STRK gives investors a blend of steady income and equity-like upside tied to Bitcoin’s performance.
STRF: The newer series (nicknamed “Strife”) offers a higher fixed dividend of 10% annually. STRF does not have a conversion-to-stock feature; it’s more like a straight high-yield income instrument. MicroStrategy designed STRF purely for income investors who want a hefty yield and are comfortable that the company’s Bitcoin-fueled strategy will keep generating cash to support those dividend payments.

These preferred shares trade on the Nasdaq and provide a way to get yield from a Bitcoin-linked entity. To put the yields in perspective: STRF’s 10% yearly dividend is roughly double the yield of a 10-year U.S. Treasury bond (which has been around 4–5% lately). In other words, MicroStrategy is offering investors a much higher income stream, albeit with more risk since it’s not a government-backed bond but a company deeply tied to Bitcoin’s fortunes. STRK and STRF illustrate how the gap between traditional finance and the crypto world is narrowing. Investors can now earn something akin to “Bitcoin-backed interest” through these kinds of financial instruments. For an investor comparing real estate and Bitcoin, STRK/STRF also offer an interesting contrast: they provide regular income (like real estate does via rent) but are ultimately supported by Bitcoin holdings. This kind of innovation suggests that in the future we’ll see even more ways to blend the stability of income investments with the upside of crypto.

How to Invest in Bitcoin and Real Estate

Both Bitcoin and real estate can play important roles in your investment strategy. If you’re ready to dive in, here are some practical steps to get started with each:

Investing in Bitcoin

Choose a reputable platform: To buy Bitcoin, you’ll typically use a cryptocurrency exchange or brokerage. Sign up with a well-known, trusted exchange like Coinbase (among others) that operates in your region. These platforms let you connect your bank account and exchange dollars (or your local currency) for Bitcoin in a fairly seamless way.
Make your purchase (even a small one): Decide how much you want to invest in Bitcoin – you don’t have to buy a whole Bitcoin (which could be tens of thousands of dollars); you can start with amounts like $100. Place a buy order on your chosen platform and purchase BTC. It will then be held in your account’s digital wallet.
Secure your holdings: If you’re investing a significant amount or plan to hold long-term, consider transferring your Bitcoin off the exchange into a personal wallet for better security. A popular choice is a hardware wallet like Ledger or Trezor – essentially a USB device that stores your Bitcoin offline, safe from hackers. Always back up your wallet’s recovery phrase in a secure location, because that’s the key to your coins.
Know alternative routes: If managing digital wallets isn’t for you, there are other ways to get Bitcoin exposure. For instance, Bitcoin exchange-traded funds (ETFs) now exist, allowing you to invest in Bitcoin via a traditional stock brokerage account. Some investors also buy shares of companies with large Bitcoin holdings (like MicroStrategy) as an indirect way to invest. These methods can be convenient, though they might come with management fees or additional considerations.

Investing in Real Estate

Identify your target market and budget: Real estate requires more capital upfront than Bitcoin, so first decide what type of property you’re interested in (residential, commercial, rental, etc.) and how much you can afford or are willing to invest. This will guide your search. Remember, you can use financing (a mortgage) to amplify your buying power – for example, a 20% down payment means you can buy a property worth five times your cash on hand.
Find and evaluate properties: Begin looking for opportunities that fit your criteria. Platforms like Brevitas allow you to browse commercial real estate listings, including off-market deals, around the world. You can filter by location, property type, price range, and more. Once you find a promising property, do thorough due diligence: analyze the financials (rental income, expenses), inspect the property’s condition, and research the local market trends. Essentially, ensure the investment makes sense and aligns with your return goals.
Secure financing and close the deal: If you’re not buying in all-cash, get pre-approved for a mortgage or line up financing through lenders. Interest rates and loan terms will affect your returns, so shop around for good rates. When you’re ready, you’ll make an offer on the property, negotiate the price, and go through the closing process (which includes appraisals, inspections, and paperwork). Upon closing, you’ll officially own the real estate asset.
Manage the investment: After purchase, decide if you will manage the property yourself or hire a property manager. Effective management is key to maintaining cash flow. If it’s a rental, find reliable tenants, set up leases, and keep up with maintenance to protect your property’s value. Over time, as you build equity (and potentially see the property value appreciate), you could even leverage that equity to buy additional properties. Real estate is a hands-on investment, but the reward is a combination of regular income and long-term appreciation.

Conclusion: Why Not Both?

So, Bitcoin vs. real estate – which is better? The honest answer for many investors is: why not both? As we’ve seen, these two assets excel in different areas. Real estate offers stability, income, and time-tested growth with the help of leverage. Bitcoin offers unmatched upside, liquidity, and a hedge against the traditional financial system. By owning both, you don’t have to fully bet against one or the other. Real estate can provide a steady foundation for your wealth, while Bitcoin can provide a high-growth kicker. During periods when the crypto market is volatile or in a downturn, your real estate holdings can keep generating rental income and likely won’t swing as wildly in value. And during periods when the property market is slow or when inflation is eroding the value of cash, Bitcoin’s price could be climbing, potentially offsetting those effects. Diversifying across both assets helps balance risk and reward.

In practical terms, this might mean holding most of your portfolio in stable, cash-flowing investments like real estate, but also allocating a portion to Bitcoin for long-term growth potential. The two aren’t mutually exclusive – they can actually complement each other. As Brevitas embraces both traditional real estate and innovative assets like cryptocurrency, the key takeaway is that investors don’t need to see it as Bitcoin versus real estate. Instead, recognize what each brings to the table. By leveraging the strengths of both, you position yourself to build and protect wealth in multiple dimensions – physical and digital. And that begs the question: when it comes to your investment strategy, why not both?