Bitcoin VS Property

It seems, as of late, both of these asset classes have gone beyond the previous ATH (All-Time-High). As with any asset classes, to profit big, it’s all about timing the market correctly. However, when it comes to the long game (or as people call it, HODL = Hold On Dear Life), the theory says: “Don’t try to time the market, just keep buying”. In this example, let’s assume we have a crystal ball and we can time the market right.

During Covid, Mar 2020, BTC reached a low point of $8356 AUD. Fast forward to 23 Mar 2024, price has reached a new ATH of $103,072. That is 12.33x. Meaning, if you have $30,000 invested, that money would have now become $369,900.

With property, I bought one of my investment properties in 2020 for $170,000: a 3×2 sitting on 686sqm, 25km from CBD which was won at an auction. I put down 10% deposit. Inclusive of stamp duty, some cosmetic fixes and what not, let’s say it’s a total of $30,000 of my own money. Fast forward to Mar 2024, that same property is now worth $500,000, a $330,000 increase in value. That means, my $30,000 is now worth $330,000 = 11x.

Looks like property is not performing as well as Bitcoin. However, with property there is a real-world use-case. After all, you cannot create more land on earth, plus, everyone needs roof above their head. Plus, you also earn rental income. Once I pay off that property, it will become a passive income. At the moment, that property is earning $500/week.

So….what would you do? What would you choose? If you have funds enough for a deposit of a house, would you buy Bitcoin with it, or property? Or maybe both?