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?
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.
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.
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.
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.
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.
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:
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.
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.
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.
Founded in Melbourne, Australia in 2017, Elbaite set out to make cryptocurrency investing safer and more transparent for Australians. Buy crypto and diverisify your portfolio with digital assets like Bitcoin.
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Elbaite Pty Ltd (ACN 623 185 875) operates a digital currency exchange registered with AUSTRAC. Please note that digital asset prices can be volatile. We will never ask for the private keys to your digital currency wallet. Elbaite is not liable for any losses you may incur, and you are solely responsible for your investment decisions. Before deciding if our services are right for you, take into consideration your own financial situation & needs and/or obtain professional financial or taxation advice from a licensed provider. Elbaite does not provide financial advice and Elbaite does not have any affiliation with external traders, advisors or trading platforms.
