Most people buy into the myth that buying a home is the best investment you can ever make...but more often than not that idea is just a myth.
Take the US as an example. The average house in N. America appreciates 5 to 6 per cent per year, which sounds great at first glance. In 10 years the value of your house will almost double.
But most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.
Making matters worse is that for the first ten years or so most or all of your payments are applied to the interest, so you wont have any actual ownership or equity of the home,
or very little...for the first ten years. And consider that much of the appreciation of your house is simply due to inflation. So if inflation is 5% per year then that alone is undermining your actual appreciation.
I'm not saying that owning a house is a bad thing, there are certainly benefits to home ownership. It provides you with a place to live, you can borrow against it,
you can pass it down to your kids, etc. If you just want to have a place to live and call your own then owning a house may be a great idea for you, but don't think of it as some kind of
incredible financial investment because it is not as great as you may think.
Even usually, buying a home is not a terrible investment. Home is considered as a safe and guaranteed investment. Your house can't go anywhere, once you buy it, it's on your name, you can have multiple of them, rent them, sell them and so on.
Bitcoin on the other hand, is a different thing and you can't own it physically, it's a virtual currency. Too many people don't know how to safely buy, sell or store Bitcoin, so, for many people, Bitcoin investment is not a good idea because they'll eventually lose access to their wallet because they don't know how to safely keep it.
When you create a cold wallet, you have to keep in mind that you need an air-gapped device, you need to safely store your wallet's keys. It looks plain and simple but it's a huge responsibility. House is more common for everyone and it's also the psychology, people prefer to own things that they can touch and see in real life.
Profit-wise, I completely agree with you, Bitcoin is superior compared to house. It's a brand new currency that almost conquered the world and has a very bright future. If anything, it's price is going high and Bitcoin ETF approval confirms that there is an interest and Bitcoin won't go anywhere anytime soon.
