When you dig a little deeper, the numbers tell a different story, especially when comparing the growth of Bitcoin to that of Australian real estate.
Traditionally, property has been seen as the cornerstone of wealth-building in Australia. It’s stable, reliable, and has historically delivered steady returns over time. But when you dig a little deeper, the numbers tell a different story, especially when comparing the growth of Bitcoin to that of Australian real estate.
What if, instead of using your house deposit to buy a property, you had allocated that money into Bitcoin? Let’s break down how your hypothetical investment could look today.
Over the past five years, Bitcoin has seen significant growth compared to the relatively modest increase in Australian property values.
Bitcoin’s Five-Year Growth: Up 511%
Australian Property National Average: Up 44%
To put this in perspective, the average 20% house deposit was AU$132,160 on September 1st, 2019. If you had hypothetically invested that amount into Bitcoin, your assumed investment would have grown to be worth approximately AU$807,497.60. Whereas your house deposit would have only increased by 44% in that same time period.
What’s even more telling is that the value of property in Australia seems to be reaching a plateau, with growth rates stabilising and showing little sign of returning to the exponential gains seen in the past. This trend may suggest that property might not deliver the same high returns that investors have historically relied on.
Meanwhile, Bitcoin, despite its volatility, has continued to show strong growth and notable returns over the same period, outperforming property in this comparison and highlighting its potential as a dynamic asset with long-term possibilities.
Even over the past three years, which included periods of high volatility for Bitcoin, it still outperformed the national average of Australian property.
Bitcoin’s Three-Year Growth: Up 36%
Australian Property National Average: Up 12%
This comparison highlights Bitcoin’s resilience and its ability to recover from downturns faster than the property market, offering the possibility of higher returns even during challenging market conditions. While property values have shown signs of slowing down, Bitcoin continues to adapt to market shifts and has delivered returns that exceeded those of traditional investments in this period.
When we look at the Year-to-Date (YTD) data for 2024, Bitcoin continues to show a strong upward trend in value compared to the national property market:
Bitcoin YTD Growth: Up 41%
Australian Property YTD Growth: Up 4%
This data paints a picture: while Australian property growth appears to be slowing to single-digit increases, Bitcoin's performance has remained on a noteworthy upward trajectory. The observed rise in Bitcoin's value, even amidst market fluctuations, further positions it as a high-growth asset.
Here are some considerations that may explain why more Australians are exploring Bitcoin as an alternative to real estate:
High Growth Potential: Over the past five years, Bitcoin’s value has demonstrated significant appreciation, delivering returns that have outpaced those of property investments. Its rapid growth has rewarded many investors.
High Liquidity: Unlike property, which can take months to sell, Bitcoin can be bought or sold within minutes. This liquidity means you have access to your funds whenever you need them, allowing for greater flexibility in managing your assets.
Global Adoption: Bitcoin’s increasing acceptance by major institutions, companies, and even governments indicates that it’s here to stay. This global recognition continues to drive demand and adds to its value, unlike property, which is limited to specific markets.
Lower Entry Costs: You don’t need hundreds of thousands of dollars to start exploring Bitcoin. You can enter the market with a small amount and scale your investment over time, making it accessible to a broader range of investors.
As we observe the property market stabilising and growth rates beginning to level off, Bitcoin's potential to deliver higher returns and adapt to changing conditions makes it a noteworthy consideration. Unlike property, which often comes with high costs, management responsibilities, and geographical limitations, Bitcoin offers a more straightforward and potentially more rewarding approach to wealth-building.
By considering the performance of these two assets side by side, it may be worth noting that Bitcoin offers a blend of liquidity, growth potential, and low maintenance that traditional property investments do not typically offer.
Our platform is built to give you complete control over your Bitcoin and crypto assets, offering both custodial and self-custodial options to suit your preferences.
Transparent and Competitive Pricing: We believe in fair pricing with no hidden fees, allowing you to focus on growing your portfolio without worrying about unexpected costs.
Flexible Storage Solutions: Whether you prefer to keep your crypto in a secure custodial wallet or have full control with self-custody, Elbaite offers both options to meet your needs.
A Trusted Platform for Australians: As a fully compliant exchange, Elbaite ensures your transactions are secure and in line with Australian regulations, making it easy to trade Bitcoin with confidence.
The historical data suggests that Bitcoin has offered significant wealth-building opportunities compared to traditional property investments over the past five years. If you’re looking to add Bitcoin to your portfolio, Elbaite is ready.
At Elbaite, we’re here to support your journey into digital assets. Join over 17,000 Aussies who are already taking control of their financial future with Bitcoin.
Click here to get started.
Data Sourced: Bitcoin Data, Property Data
The information provided by Elbaite is for general educational purposes only and should not be considered as financial or investment advice, a personal recommendation, or an offer to buy or sell any assets. It is prepared without taking into account individual financial objectives, situations, or needs and does not claim to address legal or regulatory requirements. We encourage users to conduct their own independent research and seek advice from qualified professionals before making any financial decisions.
Elbaite makes no representation and assumes no responsibility for the accuracy or completeness of the information provided. Past performance is not indicative of future results, and should not be relied upon as a predictor of future performance. Before engaging in any trading activity, ensure you fully understand the associated risks and never invest more than you are willing to lose. Please review our Terms and Conditions (https://www.elbaite.com/terms-conditions) for more information.