I know what you’re thinking. Bitcoin is the ultimate investment – a limited supply worldwide currency which is gaining steam because of a declining value of fiat currency. Bitcoin is accumulating value and fiat currency will continue to experience inflation, perhaps at a more accelerated rate than ever seen before. This is especially true in 2021 when we see a mounting national debt and the federal reserve addresses this problem by simply printing more money. Inflation is inevitable so where are you going to park your money to keep it safe over the long term? If you’re looking to diversify your investments with some of your Bitcoin profits, this article is for you.
First of all, not all real estate is a good investment. We’re already seeing pullback in real estate values in places like California and New York where people are leaving en masse to move to lower cost of living areas where their purchasing power goes further. While you read this article I want you to text me a thumbs up emoji if you like it and we can find you a new home with those sweet, sweet Bitcoin profits.
What’s interesting about the St. Pete market and Pinellas County in general is it draws some parallels to Bitcoin. Let me explain this as concisely as possible with these Top 5 reasons.
4. Bitcoin and Pinellas County real estate are both a limited supply commodity
The New St. Pete Pier completed in 2020
Anything desirable with a limited supply is bound to go up in value. Lots of people are moving to Florida. They are looking for a great place to live without the high cost of living that typically comes with nice areas. Pinellas County is a peninsula and 99% of the land is already developed with either commercial or residential property.
With apparently 1,000 or so people moving to Florida every day, this area is going to continue to experience appreciation as land becomes more valuable. It’s a limited supply commodity and real world use will always be there whether it’s people moving here permanently or folks coming to visit.
3. Bitcoin and Pinellas County Real Estate both provide value
Localtopia in Downtown St. Pete before Le Covid
Whether it’s living in a nice area, owning a home that has room to appreciate in value or owning an investment property in an area where the rental demand continues to increase, Pinellas County real estate has a lot of potential to provide value to the owners. The real estate market may seem inflated in some parts of the county however we have every reason to believe that the demand here will continue to be real instead of artificially inflated.
Cost of housing is almost on par with the national average and this area is an above average place to live so naturally prices have been on the rise. It has only started to become an above average place to live since about 2015 so I think we will continue to see property values rise.
2. Bitcoin and Pinellas County Real Estate are both on an upward trajectory
The ONE Tower. Quite possible that you’ll be able to buy a unit here with a few Bitcoins one day.
Owners of Bitcoin have invested in something that is wildly volatile however seems to be on a powerful upward trajectory. The real world use is gaining traction – just this week Tesla invested 1.5B into Bitcoin and aims to allow people to buy their cars with BTC earnings. I just heard today that Uber is also considering allowing payments in BTC. If some of the largest and most progressive companies on the planet are investing into Bitcoin isn’t a vote of confidence, I don’t know what is.
We’re already seeing pullback in some major real estate markets such as California where residents are looking to maximize their purchasing power and minimize their taxes by moving to a different part of the US. Prices are starting to decrease as the demand weakens. Your purchasing power goes further in St. Pete compared to other desirable places to live like Miami, California, NYC and even midwest cities like Chicago and Minneapolis.
I personally think some of these big cities are experiencing a real estate bubble fueled by low interest rates and artificial demand. What happens when interest rates go up and these new construction communities that were built during the boom have more supply than demand? In St. Pete we don’t have room to build out, the supply of available properties will always a limited supply commodity.
1. Bitcoin and Pinellas County Real Estate are both undervalued
View from the 17th floor of the ONE Tower
I mentioned before that St. Pete real estate is pretty much on par with the national average cost of housing in the US. Our economy is shifting rapidly to a place where many people can work remotely, which means that people who are being paid based on higher cost of living areas can move to a place like St. Pete and benefit from a lower cost of living.
Due to Le Covid, we are seeing a lot of people move out of more restrictive states to Florida which has set the precedent for lax restrictions and an open economy. Whether this is for better or worse is yet to be determined but I think opening up the economy is something that is inevitable and the sooner the better.
Bitcoin is on it’s way to replacing gold as the new store of worldwide value. Some estimates suggest that 1 Bitcoin will be worth 400k-500k if it replaces gold. As this movement continues to gain traction I don’t doubt that a 500k Bitcoin is possible.
In Conclusion
Yes you – You are beautiful no matter what they say, words can’t bring you down.
A limited supply of any sort of valuable commodity is bound to go up in value. With that said – Bitcoin will most likely always be both a lucrative and volatile investment. Real Estate is tangible, it’s possible for most people to own, and also people will always need a place to live so it will never go out of style.
Are you looking to diversify your investments to something less volatile and more tangible? If so I think you need to consider investing in real estate as long as educate yourself first and do it correctly. Feel free to text me or drop your information below!