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If You Invested $10,000 in Real Estate Instead of Bitcoin Last Year, Here is Where You Would be Now

For much of the last 10 years, Bitcoin (CRYPTO: BTC) has been driving the conversation when it comes to alternative investments. It’s not hard to understand why. Bitcoin is a perfect storm in terms of its ability to generate press and spur casual and seasoned investors to make huge bets on it. Many investors hailed Bitcoin as the currency of the future and cleared their portfolios to put everything in Bitcoin.

They looked like geniuses when Bitcoin hit an all-time high of almost $68,000 in November 2021. Unfortunately, anyone who didn’t get off the Bitcoin train in November learned the hard way that Bitcoin is as volatile as it is lucrative. Bitcoin has been in freefall for most of this year. All of this begs the question, would you have been better off putting $10,000 in real estate or Bitcoin a year ago?

Bitcoin from Jan. 2, 2021 to July 21, 2022

To assess whether $10,000 in Bitcoin or a $10,000 real estate investment was a better idea, let’s make an apples-to-apples comparison. According to Benzinga, one single Bitcoin was trading at $29,405 on Jan. 2, 2021. That means a $10,000 investment would have bought you 0.34 worth of Bitcoin, or slightly less than a third of a coin.

Bitcoin posted strong gains for almost all of 2021. In fact. it shattered its own all-time high.on a number of occasions during the year. The peak was a November 2021 valuation of $67,553.95. Needless to say, Bitcoin investors were dancing in the streets. Many of them used their profits to reinvest in Bitcoin.

In their defense, reinvesting in a high-performing offering is not the least bit controversial. Many investors adopt this strategy, both for traditional and alternative investments. But, as the old saying goes, “What goes up, must come down.” Not long after Bitcoin hit its peak, the first glimpses of inflation began dragging the economy down and then the Federal Reserve started hinting at interest rate increases.

That’s when the bottom began to fall out. Bitcoin has basically been in a state of freefall ever since, dropping below $20,000 before making a slight rally to get…


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