Bitcoin vs. Real Estate: The Superior Investment & Store of Capital
Why Real Estate is No Longer the Best Investment in Canada
For decades, real estate has been the go-to asset for wealth creation. Homeowners and investors alike have relied on rising property values to build and preserve capital. But times have changed. While real estate still has its place, Bitcoin is proving to be a far superior investment and store of value.
Let’s break it down.
Before diving in, it's important to clarify a few key points.
No, you can not live in your Bitcoin. Real estate will always have a place because we need a place to live for shelter.
Another area that Bitcoin does not compete in is the fact real estate offers us cash flow. These are reasons why it will always be a viable and important aspect of an investors portfolio.
Whether you own single-family homes or rental properties, the key takeaway here is that having some level of Bitcoin allocation is crucial. Diversifying even a portion of your assets or cash flow into Bitcoin ensures long-term capital preservation. Either a portion of your asset or ash flow should be pointed into Bitcoin for long terms capital preservation.
Bitcoin vs. Real Estate: The Key Differences
To better understand why Bitcoin stands out, let’s break down its advantages compared to real estate.
1. Liquidity & Accessibility
Real estate is a highly illiquid asset. Selling a property takes weeks, if not months. It involves agents, lawyers, banks, and a lot of paperwork. Bitcoin? You can buy or sell it instantly, 24/7, anywhere in the world. No intermediaries, no delays.
2. Maintenance & Carrying Costs
Owning real estate isn’t just about appreciation—it’s about ongoing costs. Property taxes, insurance, maintenance, management fees, and mortgage interest all eat into profits. Bitcoin has none of these. Once you own Bitcoin, you don’t need to worry about repairs, vacancies, or unexpected costs.
3. Portability & Ownership Rights
Real estate is location-dependent and subject to government regulations, expropriation, and market conditions. If you need to relocate, you can’t take your property with you. Bitcoin is global, borderless, and completely portable. You can store millions of dollars in Bitcoin on a USB drive or even in your memory.
4. Supply & Scarcity
The real estate market is subject to supply and demand fluctuations. Governments can rezone land, increase housing supply, and implement policies that affect prices. Bitcoin, on the other hand, has a fixed supply of 21 million. No government or entity can print more Bitcoin, making it the scarcest and hardest form of money ever created.
5. Inflation Hedge
Real estate is often seen as an inflation hedge, but it’s not immune to economic downturns, interest rate hikes, and credit cycles. Bitcoin, however, is a pure hedge against inflation. It’s decentralized, deflationary, and mathematically limited in supply. Over time, as fiat currencies lose purchasing power, Bitcoin strengthens.
Performance Comparison: Real Estate vs. Bitcoin
Now, let’s look at historical data to compare the returns of Canadian real estate and Bitcoin over different timeframes.
People love to argue that Bitcoin’s early days skew its performance numbers, so let’s compare Canadian real estate and Bitcoin over different timeframes.
10-Year Performance (2015-2025)
Canadian Real Estate: The average annual appreciation was 6.11%.
Bitcoin: The average annual return was 85.05%. A $1 investment in Bitcoin in 2015 would be worth approximately $470 by 2025.
5-Year Performance (2020-2025)
Canadian Real Estate: Continued steady growth at around 6.11% per year.
Bitcoin: A total return of 854%, averaging 110.9% annually.
3-Year Performance (2022-2025)
Canadian Real Estate: The market has been more volatile, but price appreciation has slowed significantly.
Bitcoin: Despite some corrections, Bitcoin has continued its upward trajectory, with high volatility but higher overall gains.
1-Year Performance (2024-2025)
Canadian Real Estate: Prices declined 2.6% month-over-month in December 2024 but saw a 3% year-over-year increase.
Bitcoin: 121.1% return in 2024 alone.
Final Verdict: The Future of Capital is Digital
The wealth landscape is shifting, and digital assets are redefining investment strategies.
Real estate has been a great asset, but its best days may be behind it. High interest rates, government regulations, and declining affordability make it a challenging investment. Meanwhile, Bitcoin continues to gain adoption, proving itself as the hardest, most portable, and most liquid asset available.
I’m not saying real estate is a bad investment—it just plays a different role. But if you’re looking for the best store of value and the highest return on investment, Bitcoin is the clear winner.
If you’re a real estate investor wondering how to integrate Bitcoin into your portfolio, let’s talk. The future of wealth is digital, and the time to position yourself is now.