Bitcoin vs. Aussie Property: See How They Stack Up

Is Bitcoin a Better Investment Than Australian Property?

Over the last five years, Bitcoin has outperformed property by over 25x, delivering a 1,053% return vs. 40% for Australian real estate. But past performance alone does not define a good investment. So how do they compare in terms of risk, liquidity, and long-term potential?

This article explores the strengths and trade-offs of both assets, helping investors understand how Bitcoin and property can work together in a diversified portfolio.

Bitcoin vs Property: 5-Year Performance (2020-2025)

If an investor had placed A$110,000 (a 20% house deposit) into either Bitcoin or property in March 2020, here is what that investment would be worth today:

Bitcoin has significantly outpaced property in terms of price appreciation, sparking discussion around its role in portfolio strategy. However, with greater potential returns come different risks and considerations.

Why Are More Investors Looking at Bitcoin Over Property in 2025?

Bitcoin’s rapid growth has coincided with increasing institutional adoption. Major financial institutions such as BlackRock, Fidelity, and Goldman Sachs have developed Bitcoin-related products, while companies like Tesla, MicroStrategy, and Square have added Bitcoin to their corporate holdings.

In Australia, the introduction of Bitcoin ETFs on the ASX has signaled growing acceptance in regulated financial markets. While property remains a fundamental asset in wealth-building strategies, Bitcoin’s accessibility and evolving role as a store of value have made it an asset of interest to a broader range of investors.

At the same time, the Australian property market has faced rising interest rates and affordability constraints, which have slowed price growth and made it harder for new buyers to enter. Unlike property, which requires significant upfront capital and ongoing costs, Bitcoin remains highly liquid and easily tradable.

The Evolution of Bitcoin as a Mainstream Asset

By Q2 2025, Australia is set to introduce updated regulatory guidelines for the cryptocurrency industry, providing much-needed clarity for investors. This follows similar efforts in the EU, Singapore, and Dubai, which have established clear legal frameworks for Bitcoin and digital assets.

Meanwhile, institutional adoption continues to grow, with Bitcoin ETFs expanding access to traditional investors. As major financial firms allocate Bitcoin alongside property and stocks, it is becoming a recognised portfolio pillar, rather than a speculative asset.

With regulation and adoption advancing, Bitcoin is transitioning from an emerging asset to an established store of value, reinforcing its role in diversified investment strategies.

Bitcoin vs Property: Risk, Volatility & Liquidity Explained

As property price growth in Australia stabilises and affordability challenges persist, Bitcoin’s growth potential, liquidity, and accessibility position it as a distinct asset class worth considering in portfolio discussions.

Bitcoin’s history includes periods of rapid growth and sharp price declines, with market fluctuations of 50% or more occurring in some years. In contrast, property typically moves in smaller increments, averaging 3-6% growth per year.

While property is often seen as a stable asset, it carries risks beyond just price movements. Real estate investors face costs such as land tax, council rates, maintenance, and potential legal battles with tenants – costs that don’t exist in Bitcoin investments.

Furthermore, government policies can suddenly impact a landlord’s ability to evict tenants or adjust rental agreements, making property returns less predictable than they seem. In contrast, Bitcoin remains highly liquid and tradable regardless of local regulatory changes, though it is still influenced by global policy decisions, particularly in the US.

Bitcoin’s Historical Returns

To provide further insight into Bitcoin’s performance as an investment, here is a breakdown of its average annualised returns over different periods:

With Bitcoin’s impressive historical performance, it remains an asset to consider for long-term holdings despite its short-term price swings.

The Case for Bitcoin: What Sets It Apart?

Bitcoin’s growing adoption and performance over the past decade have drawn attention to its unique investment characteristics. Here are some factors that distinguish Bitcoin from traditional property investments:

• High Growth Potential – Over the past five years, Bitcoin’s value has significantly outpaced property returns. While past performance is not indicative of future results, Bitcoin's price appreciation has attracted interest from institutional and retail investors alike.
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• Long-Term Asset – Bitcoin is increasingly viewed as a long-term store of value, much like gold, due to its fixed supply and increasing institutional adoption.
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• High Liquidity – Unlike property, which can take months to buy or sell, Bitcoin can be traded within minutes, offering greater flexibility for investors looking to manage their assets efficiently.
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• Global Adoption – Bitcoin’s recognition extends beyond borders, with increasing acceptance by financial institutions and businesses worldwide. Unlike real estate, which is geographically restricted, Bitcoin offers access to a global market.
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• Lower Entry Costs – Investing in property requires substantial upfront capital, legal fees, and ongoing maintenance costs. Bitcoin, on the other hand, allows investors to enter the market with much smaller amounts, making it more accessible.
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• No Ongoing Costs – Unlike property, Bitcoin has no property taxes, no maintenance costs, and no tenancy risks.

Should You Invest in Bitcoin or Property?

It's not a question of Bitcoin or Property, as both assets offer different opportunities within an investors portfolio. Many investors now view Bitcoin and property as complementary rather than competing assets that can work together to build a diversified portfolio. With Bitcoin having a YOY average return of 61.5% return over the past 5 years, it can be seen as an asset to hold long term despite the significant swings in the short term.

Institutions are increasingly allocating Bitcoin alongside traditional assets, treating it as a hedge against inflation while still maintaining positions in real estate and other hard assets.

• Bitcoin offers accessibility, long-term growth, and potential for rapid price appreciation.
• Property provides stability and long-term value.
• A mix of both may provide balance across different market cycles.

Why Australians Choose Elbaite for Bitcoin

For those looking to gain exposure to Bitcoin in a secure and transparent way, Elbaite offers a regulated Australian exchange designed for investors who value security, customer service, and ease of access.

• Crypto Vaults for enhanced security - Institutional-grade protection for peace of mind.
• Exceptional OTC desk service - Facilitating high-value trades with personalised support.
• Self-custody and direct wallet trading - Trade without counterparty risk.

Final Thoughts

Bitcoin has become a serious consideration for those looking beyond traditional investment options. While it carries higher volatility, its growing adoption and accessibility have positioned it as an asset with unique characteristics compared to property.

Rather than viewing this as an either-or decision, many investors are choosing to incorporate both assets into their portfolio, reflecting a broader shift in wealth-building strategies.

Start your Crypto Investment Journey Today with Elbaite.

Frequently Asked Questions

Is Bitcoin a better investment than Australian property?

Bitcoin and Australian property have had different performance trajectories over the past five years. While Bitcoin has experienced higher price increases, it has also been subject to greater volatility. Property, on the other hand, has historically been associated with long-term stability and rental income. The choice between the two depends on factors such as risk tolerance, investment goals, and market conditions.

Why has Bitcoin outperformed property?

Bitcoin’s rapid growth is driven by institutional adoption, increasing mainstream acceptance, and limited supply. Meanwhile, Australian property prices have slowed due to rising interest rates and affordability challenges.

Should I invest in both Bitcoin and property?

Bitcoin and property have historically served different roles in wealth-building strategies. Property is often associated with long-term stability and passive income, while Bitcoin has demonstrated higher growth potential and liquidity. Some market participants and institutions have explored both assets to diversify their portfolios, considering factors such as market conditions, risk tolerance, and investment objectives.

How can I buy Bitcoin safely in Australia?

Elbaite offers secure Crypto Vaults, an exceptional OTC desk for large orders and self-custody trading for those looking to purchase direct to their wallet.

Data Sourced: Bitcoin Data, Property Data

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