In this economic melt down, it is important to invest your money in highly valuable assets. The wealthiest people on Earth invest in tangible and/or digital properties. In this article you will find out which is a better investment: Land vs Cryptocurrency.
Valuable assets include landed properties, real estate, oil and gas, gold, cryptocurrency and any commodity that basically holds value. Two popular types of investment: land and cryptocurrency, have been making waves in today’s market. When it comes to these two, it can be difficult to know which would be a better investment as both have benefits and, like all investments, both have risks too.
If you want to see your money grow, then you have to invest. With a bit of hard work, research, networking and luck, many investors have managed to have a lucrative, diversified investment portfolio.
However, we would be comparing investing in landed properties and investing in cryptocurrency.
Land
Land is becoming increasingly scarce. This is why people should buy land, because its demand is increasing steadily.
Why You Should Invest In Land
- Tangible assets : A landed property as an investment is very tangible. It is one that you can see, touch, and feel. It also cannot just disappear into thin air due to issues in a computer system.
- You can influence appreciation rate: As an investor, you can have the opportunity to force the appreciation of the asset. If you are not ready to build on it, you can lease it and earn passive income while it still retains its value. You can also turn it to a park, a garden, a ranch, or a farm.
- Long term peace of mind : land is a long-term. It is a tangible asset that doesn’t wear out and doesn’t depreciate. No one can break, steal, or destroy it and there is no case of cyber attack, or internet theft. All of these benefits gives the investor peace of mind
- Land has a very low depreciation risk: When assets depreciate, they lose value, wear out, decay, get used up, or become obsolete. Because land is tangible, it is not volatile. So you can never be afraid of your investment loosing its value
- Land is always in high demand: Land will never run out of demand because of its versatile nature. This means that if you invest in land, your future is secured because it will attract the attention of buyers, real estate investors, banks, and even the government. You can never run at a loss with a landed property as your investment
Why You Should Not Invest In Land
- Cannot be easily liquidated: One problem of investing in land is that the asset is not as liquid as other investment. Unlike a stock or crypto which can be bought and sold at anytime, land often cannot be traded quickly. It can take several months or even years to find a suitable buyer for a property. This makes land more of a long-term play than some other asset classes.
- Development: When you buy a virgin land, the value only increases as development level increases. This means that it’s value is independent on its level of development either on the property itself or in its location. Both ways, either you spend a lot of money investing on it to make it into a real estate piece, or the government or other investors invest in the environment.
- High costs of transactions: Buying a landed property is quite expensive. In addition to this, are other costs like agent fee, clearing fees, appraisal fees, inspection fees, property taxes, insurances, etc
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Cryptocurrency
Cryptocurrencies are digital currencies that act as a means of exchange globally to purchase goods and services. They are technological currency that are backed by a blockchain technology. There are different types of coins sold in the Crypto market but the most popular is the Bitcoin. Others include, Euthereum, Dogecoin, Litecoin, Cardano, Binance coin, Tether, Solana, Polcadot, Luna, to mention but a few. Some individuals, however, also invest in them in order to trade for a profit.
The coin-like currencies are produced by “mining”, which involves computer software solving complex mathematical problems. The miner is rewarded with a coin when the problem is solved.
Why You Should Invest In Cryptocurrency
- Governed by economic principles : Cryptocurrencies operate on the principles of economics and not government or political influences. This is why crypto is different from traditional currency. it is decentralized and no one entity regulates or has control over it. If the currency needs to be transferred, it is publicly shared via the blockchain. There are also a limited number of bitcoins in circulation, so a government cannot simply print more.
- Cheaper to invest : Investing in a cryptocurrency is easy, especially when compared to buying a land. When you want to buy a land, you must have a decent amount of money on hand or take a loan. You must also process property papers and documents to ensure that the land is legit. But with crypto, you can start investing even if you have around N1000.
- Growth rate is exponential : The growth rate of crypto currencies is at an exponential rate because of its high demand. In the past 5 years, Bitcoin’s value has increased by almost 6,000%. That figure was closer to 9,000% during its peak in April 2021. Other coins have appreciated over 1,000% returns in the past few years.
- Passive income: Passive income is a type of income that is earned with little or no effort. Individuals and companies make it regularly with investments or peer-to-peer (P2P) lending. When you buy a crypto currency, you don’t have to work for it to grow. After a few years, your investment has multiplied
Why You Should Not Invest In Cryptocurrency
- Not a tangible asset : Cryptocurrency is not a tangible asset. You cannot hold a Bitcoin in your hand because it only exists on the internet. This can make it prone to cyber attacks along with other types of cyber crimes that could take your investment from you.
- It can be banned by the government: The government can ban the use of cryptocurrency as a means of exchange of value. Some countries that have put a ban of cryptocurrencies are Nigeria, India, Bangladesh, Iran, to mention but a few.
- Volatility : Because of the fluctuation of the cryptocurrency in the digital market, the prices goes up and down regularly. In the past year alone, Bitcoin went from $10,000 in 2020 to over $60,000 in April 2021. It then went below $30,000 in mid Jul 2021, and is now up 31% in the past week.
- No personal influence : The rate at which your investment would grow is totally independent on your deliberate actions. Unlike a landed property that appreciates in accordance to its level of development. you can build houses on the land to increase its value, or turn in into a business venture. you cannot add extra value to a cryptocurrency.
- Lack of transparency : Lack of transparency makes it hard to determine the true value of a coin. This can lead to it being trader for a value higher than it is truly worth.
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I am the lady with the numbers at OG capital. Graduate of accounting from Bingham university and a Business Valuation officer from CFI in view. Fun loving and kind. Living the life of christ
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