• The UK property market has outperformed crypto in 2022, with house prices increasing by 10.4% compared to a decrease of 40.9% for bitcoin.
• Despite economic headwinds dampening the rate of house price growth towards the end of 2022, it could be argued that property is now massively overvalued and forming a bubble.
• Bitcoin offers more options than owning a house; having all one’s wealth tied up inmortgage may not be the most effective strategy during times of economic turbulence.
UK Property Market Outperforms Crypto
The UK property market has posted a strong and steady performance in recent years and has outperformed two leading crypto coins on an annual basis despite economic headwinds dampening the rate of house price growth seen towards the back end of 2022. Alice Bullard, Managing Director at Nested, an estate agent, commented on this saying: “The UK property market has not only posted a strong and steady performance in recent years but has outperformed the two leading crypto coins on an annual basis, despite economic headwinds dampening the rate of house price growth seen towards the back end of 2022.”
Property vs Bitcoin
House prices have been rising rapidly since 1960s with only one major blip during Great Recession 2007-2009. With money available to be spent, who wouldn’t buy a house instead of buying bitcoin? Property always goes up and is considered as safe as houses whereas bitcoin offers more options than owning a house; having all one’s wealth tied up in mortgage may not be the most effective strategy during times of economic turbulence.
Property Bubble Forming?
It could be argued that property is now massively overvalued and that the bubble has been forming for many years. Despite this history of price rises and resilience to major economic shocks, there are no guarantees that this trend will continue forever so it might be wise to invest elsewhere too such as crypto markets which have regular bull/bear cycles offering potential for greater returns or losses depending on timing.
Why Invest In House?
Bricks and mortar is generally considered to be the best place to put your wealth due to its relative stability over time compared to other markets such as stocks and shares or cryptocurrencies – although it must also be noted that interest rates can change making mortgages harder or easier to pay depending on conditions at any given time. Having said that, it could still make sense to buy a house if you are able to survive interest rate hikes while waiting for longer term returns – much like investing in stocks or bonds except with more security since you own physical asset rather than just paper certificate or numbers stored online!
In conclusion, while investing in cryptocurrency carries more risks than investing in bricks-and-mortar assets such as property, there are pros and cons associated with both investments strategies depending on individual circumstances – so it’s important do your research before deciding where your money should go!