Burt Polson’s Real Estate in the Napa Valley: Should you sell your investment real estate and buy Bitcoin? | Burt Polson

Bitcoin was in the news recently amid its record profits, corporate acquisitions by companies like Tesla, and several investment firms discussing its merits. What is Bitcoin and As an Investment Property Owner Should You Sell and Buy Bitcoin?

Under no circumstances should this be construed as investment advice. Bitcoin is a speculative and volatile investment, while selling investment property will result in significant tax ramifications.

What is bitcoin

There are secrets of the founder of Bitcoin who is said to be Satoshi Nakamoto. Nobody knows the person or where they might be. Many believe that it is actually a pseudonym of another person, group of people, or government agency.

Bitcoin is a cryptocurrency, or electronic version of value, that the blockchain uses to verify and store property rights and transactions. Bitcoin has several advantages, such as anonymity and easy exchange options, but it can be stolen easily if not stored and is extremely volatile in price.

In 2011, Bitcoin was around $ 1.00 per coin. Today it fluctuates in the $ 50,000 range. If you had bought $ 1,000 worth of Bitcoin in 2011, it would be worth $ 50,000,000 today.

Selling your investment property

Take the example of a strip center bought for $ 650,000 in 2011. That investment could sell for $ 2,000,000 today. In this example we are looking at a snapshot in time. In reality, the owner’s income and tax benefits over the past decade are not covered in this example.