Cryptocurrency vs. CRE: An Emerging Investment Compared to a Standard

[vc_row][vc_column][vc_single_image image=”878″ img_size=”full” alignment=”center”][vc_raw_html]JTNDZGl2JTIwaWQlM0QlMjJidXp6c3Byb3V0LXBsYXllci05MjQzMzAyJTIyJTNFJTNDJTJGZGl2JTNFJTNDc2NyaXB0JTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuYnV6enNwcm91dC5jb20lMkYxNzQwMjc5JTJGOTI0MzMwMi1jcnlwdG9jdXJyZW5jeS12cy1jcmUtYW4tZW1lcmdpbmctaW52ZXN0bWVudC1jb21wYXJlZC10by1hLXN0YW5kYXJkLmpzJTNGY29udGFpbmVyX2lkJTNEYnV6enNwcm91dC1wbGF5ZXItOTI0MzMwMiUyNnBsYXllciUzRHNtYWxsJTIyJTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwY2hhcnNldCUzRCUyMnV0Zi04JTIyJTNFJTNDJTJGc2NyaXB0JTNF[/vc_raw_html][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]On a lighter subject, RETC looks at crypto currency and its novel attraction and real estate as a traditional, gold standard investment. This commentary is not intended to be an opinion on which is a better investment. Rather, this sheds light on the evolution of a new investment and the proven stability of a known investment.

Crypto currency in its true form is very similar to gold. There is not much you can do with it as in there is no intrinsic value. As demand grows for crypto currency the value will continue to rise. Commercial real estate, on the other hand, produces cashflow. Your assessment is based on future cashflows you earn on the real estate. More so, real estate is an inflationary hedge. The main difference, Crypto is speculative and unregulated.

Crypto currency is not a day-to-day currency. There is little transactional use as of today. If, and when it gets to that point, governments will have some form of control over it, especially in the form of taxes. This might have an impact on the limited supply over time.

Commercial real estate is a proven investment that is regulated like other common investments. Crypto currency is in its infancy. It will be interesting to watch its development into a valid currency on the economic stage.

Contact Info

To learn more about how property tax issues can affect your investing strategies, please reach out to Tim Feagans directly at tim.feagans@retcgroup.com.[/vc_column_text][/vc_column][/vc_row]