For Millennials, Bitcoin Is the New Real Estate

In Hong Kong, it’s common for parents who own property, even a small one-bedroom apartment, to be millionaires. But for younger generations like millennials and Gen Z, skyrocketing property prices are not just an obstacle, they’re a heavy financial burden. Many of these homeowners are saddled with long-term mortgages that have high interest rates, making it difficult for them to move up financially or socially. In essence, the fast pace of urban development in Hong Kong means that younger people are less likely to accumulate wealth through property ownership compared to their parents’ generation.

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While it might not be feasible anymore for young adults to build wealth through real estate, they often perceive this as their sole option due to limited evident alternatives. Unfortunately, some are struggling to keep pace as the real estate market escalates in numerous Asian cities, potentially leading them into a financial decline.

In the midst of this quandary, some professionals are proposing unconventional investment avenues like Bitcoin. Often referred to as “digital real estate,” Bitcoin offers a distinctive chance for younger investors because its maximum supply is limited to 21 million units, making it rarer compared to many property options in the real world. The flexibility of its market allows investors to buy and sell Bitcoin instantly, without the constraints or upfront costs typically linked with property ownership. This aspect makes Bitcoin an enticing investment prospect.

In each new era, wealth frequently gets reshuffled and reallocated, and bitcoin might significantly contribute to this transformation. It appears that young individuals, fueled by their tech-oriented mindset, tend to be more receptive towards cryptocurrency investments. This trend hints at the possibility that bitcoin may serve as a key instrument in the transfer of wealth from older generations to the younger ones.

For the young generation, Bitcoin presents an innovative avenue for amassing wealth. Rather than chasing after costly properties, these financially-inclined individuals might ponder investing in Bitcoin instead.

To ensure success in this investment, it’s important to adopt a long-term perspective – meaning you should plan on holding bitcoin, similar to how you might hold onto a home – instead of focusing on quick trades for short-term gains. This cautious and thoughtful strategy is essential for creating lasting wealth amidst today’s complex financial environment.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.