There is a virtual currency called the "Bitcoin."
The person is Malte Muller.
If a person put a down payment on a home in Manhattan five years ago, they would lose money if they tried to sell it today, while an investment in the virtual currency would allow them to make nearly $20 million.
The findings of a recent analysis by Point2 compare returns for an investment made in the year of 2017, in both US residential real estate and in the virtual currency,.
The prices of US homes have increased since last year. Home price increases were blown out of the water by the appreciation of thebitcoin price.
At the start of November, the price of the digital currency was $61,900, which is 6, 100% higher than it was at the start of the year.
The median sales price of houses in the US increased by 29% in the third quarter of 2021, to $400,000, from $323,100 in the first quarter of the year, according to the Federal Reserve Bank of St. Louis.
The platform said in a late November statement that the fear of taking big risks is what has kept many from investing.
To compare the two assets, Point2 analysts assumed an initial investment equal to a 20% down payment for the median home in each of the 100 largest cities in the US.
A 20% down payment is required in Manhattan in order to buy a home, while San Francisco requires $250,000. In those cities, the down payment would have bought 301 and 260 bitcoins.
Point2 found that the big winners would've been investors in Manhattan and San Francisco.
They would have had more than $18 million and $16 million in their wallet today if they had invested the median down payment in the same amount.
Manhattan was the biggest outlier. The most spectacular gap between real estate and earnings was recorded by the NYC boroughs. The five-year period saw home prices fall by 31% to a median price of $1,000,000.
Point2 weighed a home down payment of $6,552 in Detroit against a 7 bitcoins investment. The person in Detroit would have made about $45,000 in real estate gains and $680,000 in bitcoins over the course of five years.
Point2 said that real estate is the more well-established investment choice, but that bitcoin has "come a very long way since its humble beginnings."
It seems like a huge mistake to not invest in the digital currency. It said that the asset's high volatility brings things back into perspective. It's not good to invest in such a high-risk asset immediately.
Business Insider has an original article.
