Balancing Bricks and Bytes: The Evolving Role of Bitcoin in #RealEstate - a new article of mine is online.
https://en.coinfinity.co/blog/bitcoin-and-real-estate-leon-wankum
Read it. Here is my question:
As I age I will naturally want to derisk my portfolio, productive real estate seems perfect for this... but I view that market as highly over-valued and susceptible to interest rate risk. When do you think real estate will reach a competitive risk adjusted return ( Sharpe ratio) with bitcoin?
Predictions are difficult, especially when interest rates are subject to the whims of the Federal Reserve. If you are a "traditional" real estate investor, and physically need to be near the properties, you are also subject to the risk of the local economy being improperly valued.
Many modern real estate investors leverage technology, and invest from a distance. This mean investing in other states, or countries, and getting more purchasing power for your currency. A United States real estate investor, for example, might live in California, and purchase properties in Minnesota. Your dollar buys more, and you can spread your risk even further by purchasing multiple properties, rather than one higher priced property.
