Euronews.com Which yielded more in the last decade: Bitcoin or a house in London

[pawel7777]

Nice little article citing British estate agency "Foxtons" that published that London's property market was such a great investment over the last decade that only 2 types of investments yielded higher returns: Bitcoin and Gold. I have my doubts if this is true though. It looks like they discarded any other cryptocurrencies in their analysis and probably limited it to major indices etc (ignoring any individual stocks etc).

One of the comments made me chuckle:
"Good luck cashing in your Bitcoin, pretty sure most banks won't touch the stuff with a long pole."
I'm not sure if this was a joke or are there still people out there thinking this is true.

Which yielded more in the last decade: Bitcoin or a house in London?

https://www.euronews.com/business/2024/02/22/which-yielded-more-in-the-last-decade-bitcoin-or-a-house-in-london

The most famous crypto yielded almost 5,000% over the last decade.

London's property market has proved to be one of the best bets for investment over the past 10 years, with a yield of more than 44%, according to a new market analysis by British estate agency Foxtons.

The estate agent analysed the performance of the UK capital's residential property market against nine other popular investment options, including Bitcoin and the FTSE 100. It found that only two investment assets have delivered higher return on investment over the past decade.

 It is hard to beat the breathtaking 4,963% yield Bitcoin has seen in that 10-year period. The cryptocurrency had an average value of $840.3 in December 2013 which swelled to $42,544 in the period up to December 2023.

Meanwhile, gold - the safe haven investment - takes second place, with a 66.8% return on investment over the same period, priced around $1,223.9 back in 2013 and reaching $2,042 last December.

The price of silver has increased by a more moderate 22.9% while investing in the FSTE 100 index (tracking the stock price of the 100 biggest companies in the London Stock Exchange) would have seen an even smaller return of 15.7%.

The worst choice proved to be WTI Crude Oil (-26.3%), Brent Crude Oil (-30.2%) and natural gas (-41.5%).

"The investment landscape is constantly changing and, while some traditional vehicles have seen a sharp decline in value over the last decade, such as natural gas, other emerging markets such as cryptocurrency have experienced a boom period, albeit with a heightened degree of volatility," said Foxtons CEO Guy Gittins.

Is bricks and mortar in London overpriced?

The average value of a London home in December 2013 was £352,028 (€411,237). Today, the average price is £508,037 (€593,486) - an increase of more than £156,000 (€182,238), according to the research which looked at data from the Land Registry.

"The London market is undoubtedly the pinnacle when it comes to UK property investment and while the last year may have been a challenging one, the value of a London home has still climbed considerably over the last decade," said Gittins.

The UK estate agency expects the London property market to attract a high level of investment from investors as "it has now turned a corner in 2024".

[hugeblack]

Which yielded more in the last decade: Bitcoin or a house in London?

This comparison is meaningless. There is a fundamental difference between Bitcoin and the real estate market and a difference between them in almost everything that makes them a tool for diversifying investment and not for comparing investments.

Also, Bitcoin is a modern investment, and there is a high demand, and therefore the increase in the price of Bitcoin over the past 10 years is considered the highest increase for an asset, and when you compare it with all investments, it will definitely be an ideal investment, but it is impossible to convince someone ten years ago to invest 100,000 dollars in Bitcoin while that was easy is the case of stock market (especially after what happened in 2013)

[Don Pedro Dinero]

It is clear that bitcoin has been more profitable than the real estate market, which was the business par excellence in the 20th century, while in this century big business has been digital.

This comparison is meaningless. There is a fundamental difference between Bitcoin and the real estate market and a difference between them in almost everything that makes them a tool for diversifying investment and not for comparing investments.

For me, the comparison highlights the positives of bitcoin. Apart from the fact that bitcoin has been more profitable, it is much easier to store, transport and transfer. It does not entail a number of costs, such as property tax, maintenance costs and so on. And it is much more difficult to confiscate. In other words, bitcoin wins by a landslide in the comparison, although a well-diversified portfolio could include real estate, the stock market or commodities.

[Aanuoluwatofunmi]

If you want the correct answer to this between which one yielded a lot in terms of profitability over a decade now between bitcoin and a house in London, just make a google search on the most profitable investment asset in the world and see what you will be served with, bitcoin will be the first to see while i don't think owning a house in UK can even be among the other possible alternative to see, bitcoin is more profitable as of recent than gold or real estate business, all this could be seen on the google by searching through, you will need a house maintenance fees to be paid to the government annually while bitcoin requires nothing from your profit and you can hodl for as long as you wishes without any fee for maintenance.

[ABCbits]

Which yielded more in the last decade: Bitcoin or a house in London?

This comparison is meaningless. There is a fundamental difference between Bitcoin and the real estate market and a difference between them in almost everything that makes them a tool for diversifying investment and not for comparing investments.

Also, Bitcoin is a modern investment, and there is a high demand, and therefore the increase in the price of Bitcoin over the past 10 years is considered the highest increase for an asset, and when you compare it with all investments, it will definitely be an ideal investment, but it is impossible to convince someone ten years ago to invest 100,000 dollars in Bitcoin while that was easy is the case of stock market (especially after what happened in 2013)

It's only meaningless for those who doesn't invest in either. If i don't invest on Bitcoin or house, i would find this comparison interesting since i only see news about rising Bitcoin price or people says house no longer affordable.

[TomPluz]

Which yielded more in the last decade: Bitcoin or a house in London?

This comparison is meaningless. There is a fundamental difference between Bitcoin and the real estate market and a difference between them in almost everything that makes them a tool for diversifying investment and not for comparing investments.

Also, Bitcoin is a modern investment, and there is a high demand, and therefore the increase in the price of Bitcoin over the past 10 years is considered the highest increase for an asset, and when you compare it with all investments, it will definitely be an ideal investment, but it is impossible to convince someone ten years ago to invest 100,000 dollars in Bitcoin while that was easy is the case of stock market (especially after what happened in 2013)

It's only meaningless for those who doesn't invest in either. If i don't invest on Bitcoin or house, i would find this comparison interesting since i only see news about rising Bitcoin price or people says house no longer affordable.

Surely for people who are not into investing with anything of real value in the real world this news can really be meaningless therefore they would not be reading it and would not really care which of the two assets can be giving someone a better return. Now, if you are someone in UK then it would be poking an interest especially if you are into real estate or at least got a home which is appreciating in value but it would be much nicer if you have a house and you happen to be one of the few who got into Bitcoin in the past years if not in the first five years of its existence. I think the material above is talking on comparing different assets as far as ROI is concerned and there is no point really to talk the differences of these assets because for sure real estate is different than gold and much more, more different if compared to Bitcoin when talking on features, uses and nuances. We should also highlight the fact that it seems UK is a lot less Bitcoin friendly compared to USA as there is that concerned on how to convert it to cash as banks maybe reluctant to do business with cryptocurrency...it would be good to hear a perspective from someone based in UK in this forum if there is one.

[dkbit98]

Bitcoin should be looked as long term investment, but price is never going to be stable, so I expect big ups and downs.
Housing market is one of the biggest bubbles in the world, but if you asked most people would they choose to receive a bunch of Bitcoins or house in London, almost 100% would choose the house.
Situation is so funny that most people don't know about Bitcoin and I saw many videos of people wanting $100 more than 1 Bitcoin as a gift 

[trendcoin]

Bitcoin is a new commodity due to its technology. Also, commodities with early adoption rates are always the most profitable investment instruments because they are highly profitable. I don't think it's right to compare Bitcoin in this way. I mean, if we make comparisons like that, if we look at the last 2 years or a period that we adjust, we can find a period where Shiba has earned more than Bitcoin.

[Cryptomultiplier]

Bitcoin should be looked as long term investment, but price is never going to be stable, so I expect big ups and downs.
Housing market is one of the biggest bubbles in the world, but if you asked most people would they choose to receive a bunch of Bitcoins or house in London, almost 100% would choose the house.
Situation is so funny that most people don't know about Bitcoin and I saw many videos of people wanting $100 more than 1 Bitcoin as a gift 

I wouldn't blame anyone for chosing the house over the Bitcoin because I would do same too, even after the comparison of how it performed against Bitcoin is made.
I would like to think that real estate has always been a rising value of asset that is unlike Bitcoin because of its tangibility.
BTC is still gaining weight and I know how much worth of it I would have owned by now, had I decided earlier to HoDL or DCA at my pace for close to a decade.
 It's not too late for me to HoDL BTC now, but a decade of doing so require much more patience and discipline and am sure there won't be much bills to pay if I have the house and have the knowledge of Bitcoin already.