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What Do Bitcoin, Gold and Land Have in Common?
Bitcoin, gold and land — when you first think of these asset classes, contrasting differences emerge, but these three unique assets share…
Bitcoin, gold, and land share more in common than you might think. Let’s dive in and discover these powerful investments on a deeper level.
Store of Value
A store of value is an asset, commodity, or currency that maintains its worth and can be exchanged without decreasing in value.
Land was the main historic store of value in the past. Gold and Bitcoin are the digital equivalents of land in the 21st century.
Assets that store value have revealed to be popular lately due to ramping inflation which devalues currencies.
Unlike money, these 3 unique assets withstand inflation and aren’t influenced by the government’s actions.
Finite VS Not Finite
For an asset class to be a store of value it has to be limited.
There’s a limited supply of gold in the world and it is getting harder and harder to mine more of it.
The same is true for Bitcoin, which won’t have more than 21 million coins in the world.
Land works the same way.
So, why do gold and Bitcoin seem to be more popular than land as an investment?
Because investing in land is not easy. It takes time, money, and a minimum amount of knowledge to be able to do so.
There are many finite resources on earth. Water and rock, for example, are also finite.
So why aren’t they as valuable as gold, land, and Bitcoin?
Because you can’t do as much with them as you can with the other assets.
Bitcoin is valuable because it is decentralized and can be used to move a vast amount of wealth from one corner of the world to another.
Gold is valuable because it is shiny, malleable, and is used in the technology industry.
Finally, land is valuable because we do everything with it: growing food (farm fields and grazing), building houses, building shops and entertainment infrastructures, forests, etc.
In a world with a growing population, the price of land will keep on expanding as demand will increase.
In times of inflation, investors should seek to protect their capital by investing into finite assets whose value increases as money’s value decreases.
Land, gold and Bitcoin are great assets to do so.
LandEx is a land investment platform enabling any citizens from the EU, UK, and EEA to conveniently invest in land from the comfort of their couch.
Try LandEx today, on landex.ai, and begin your land investment journey.
The content LandEx’s blog is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. Nothing contained on the LandEx Medium blog constitutes a solicitation, recommendation, endorsement, or offer by LandEx or any third party service provider to buy or sell any financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.