In today's environment, is property still

the number one vehicle? And I'm going to put some numbers to you to

make you think about either do you invest in Bitcoin or

property. In this case, we're not putting the $100,000 into property.

We're going to put the $100,000 straight into Bitcoin. And

at 29%, let's see what the numbers work

out. Things are going up so fast right now that the money that you've got

sitting in your bank account is not even keeping up with inflation. So

in fact, you're going backwards. The point of this video is just

to seem to get your mind thinking about the possibilities and

the potential of investing in what I consider the greatest asset

of our generation. I'm Matthew Fraser, and this is

Crypto Collective. After making millions with Amazon and e-commerce,

I realized that if I was starting again today, crypto would

be my first choice. I'm here to help you take your first

steps and build real wealth. Ready to set yourself up

for life? Let's go. Hey guys, welcome to

Crypto Collective. My name is Matthew Fraser. And in today's episode, we're

going to discuss why real estate investors are terrified of

Bitcoin's insane returns. Now, if you

had $100,000 right now, would you invest in property or

Bitcoin? And today, I'll break down the numbers, the

pros and the cons to help you decide which path could

lead to greater wealth. Now, I was talking to a friend just the other day

who's at a crossroads. He has investment properties, but can't borrow

any more money due to serviceability. So we discussed an

alternative, Bitcoin, and the numbers might

surprise you. Now, real estate has been a tried and true

investment for decades. But in a world where Bitcoin's annual

returns absolutely dwarf property growth, is

it time to rethink your strategy? Now, admittedly,

I've been in the property game myself for decades and having grown

up in the 90s, I came out of high school in the workforce in

the very late 90s. And all I did was think about buying

more property. I read a ton of books about buying property. But of course, back

then, there was no Bitcoin. So the vehicle to wealth seemed to

be property. So Australians have been indoctrinated into

buying more real estate. And look, admittedly, it has been a

good way to create wealth and has kickstarted me to

where I am now. But in today's environment,

is property still the number one vehicle? And I'm

going to put some numbers to you to make you think about either

do you invest in Bitcoin or property or maybe

you do a hybrid and invest in both. So let's take a look at the numbers.

So imagine a $500,000 property growing at Let's

just say 10%, even though the numbers suggest really

it's closer to 7% annual growth on average. But

let's just give it the benefit of the doubt and give it a boost and say 10%. Now

that's versus $100,000 in Bitcoin

compounding at what Michael Saylor says into the future, the

next 20 years at least, will be a base case of

29% annual compounding growth rate. So which

do you think wins after 20 years? Let's dive in.

So let's talk about serviceability. Now serviceability has a

cap in real estate. Now serviceability means how much can you

borrow from the financial institution, namely your

major banks. And that's going to be based on your

current debts plus also what your income

is. And at some point along the scale, you're

going to get to a point, like most people do, where you simply can't

borrow any more money from the bank. The

reason why that is the case, as I mentioned before. So in order to get more money,

you've either got to decrease debts or increase income. Now, income

can mean through rental properties or from your day job. So

essentially, there are borrowing limits which restrict further property

investments for some individuals. So alternative investment options.

I suggest, say, $100,000 into Bitcoin instead of

leaving it idle, saving for future properties. Now, the historical returns

on Bitcoin, just so you know, over the past decade has

been over 60% compounding interest per

annum. And the last four years has been 55%. And

this year alone, in 2024, has been over 100%. So

the numbers are there. That's the evidence we've got. Compared that

to if you had that same money sitting in property, the property would

have done somewhere between 7%, maybe even 10% over the past 10, 20 years. Alright

guys, now I want to show you the actual numbers. I'm going to

show you this so you can see it with your own eyes on a spreadsheet. And

keep in mind too, when I talk about the future growth potential of

Bitcoin, look, nothing is certain. So this is not financial

advice. Do your own research. But what I can tell

you, as I mentioned before, is Michael Saylor is thinking, who's

a Bitcoin evangelist. He's a pretty smart guy. He's thinking

29% annual growth rate. As a base case, some are suggesting upwards

of 50% compounding annual growth rate.

And so let's have a look at those numbers and see how it compares to

if you had that same money sitting in a property. All right, so we're going to

put in our $500,000. So $500,000 is

what's going to be exposed in the market for the property. Because

don't forget, you're putting $100,000 in, but it's also leveraged. That

is a big difference. The bank is putting in $400,000. So we want to

see at 7%, $500,000. Now, if you don't have this, I

strongly suggest you get one of these compound interest apps. They

are a lifesaver, and I literally live on this thing. Just maybe even pause this

now and actually go and download the app for yourself so

you can follow along. So the first thing I'm going to do is look at

the $500,000 at 7% over 10 years. So after

10 years, this property we expect to be

worth just over $1 million. Now

let's just see while we're here, what is this property expected to be worth after 20 years?

Still at the 7%. and it's just over 2 million.

So I'll just put in 2 million there. Now,

in this case, we're not putting the $100,000 into

property. We're going to put the $100,000 straight into

Bitcoin. And at 29%, let's

see what the numbers work out. So already, at

29%, in a decade's time, it is going to be $1.8 million. Far ahead of the property example.

And let's see what it's going to be over 20 years. Wow.

$32 million. That is completely incredible.

But as I said before, it could be upwards of 50% annual

growth rate for Bitcoin. So let's just see what

that is going to look like. So we're still using $100,000. We're going to put 50% into the calculator over 10 years.

And we're going to be at $14.5 million

in 10 years. And then at 20 years, this is just off

the chart. Absolutely off the chart. This is going to be $2 billion

thereabouts. A bit over $2 billion. Totally insane.

Absolutely insane. So when you compare those two,

there is really no reason to go

into property unless you don't have the conviction that

Bitcoin is going to do those returns or that Bitcoin is

the safest asset. You might be thinking that Bitcoin

is just pie-in-the-sky stuff. So if you're thinking that, then

this is obviously not for you. So let's just say that Bitcoin is not for you.

And you've got this $100,000 still. You still can't borrow any

more money from the bank to buy more property. Let's say you just

put it in term deposit. Right now, term deposit is

giving you 5.5%. So over

10 years, your $100,000 is going to

turn into a whopping $173,000. It's not even going to keep up

what we call the hurdle rate. The hurdle rate is inflation. Things

are going up so fast right now that the money that you've got

sitting in your bank account is not even keeping up with inflation. So

in fact, you're going backwards. And some say the hurdle rate right

now is 14% or 15% per annum. So that's what

you've got to think about when you're putting your money into an investment. Am I getting

at least 14 or 15 percent return which

is staying ahead of inflation. So let's

say that you do invest this $100,000 into Bitcoin and

as you can see you're going to have somewhere between 1.8 to

14.5 million dollars worth of Bitcoin value. And let's just

say at this point you decide that you still want to buy property.

Well you've got a couple of options. One is you could sell some or

all of the Bitcoin and go and put that towards a property now whether that be

another deposit on a property or you buy

the property outright with their funds from Bitcoin or

the other option is you actually hold on to the Bitcoin and

borrow against the Bitcoin to buy property. So this is

where you can find that property and Bitcoin can work together.

And there's already companies in the US who are

already offering loans on Bitcoin to

buy property. Okay, so this is not something that's pie in

the sky. It's happening right now. Now, admittedly, the Australian banks haven't

caught on to this, but there are financial institutions right

now in Australia who lend against Bitcoin. So

here would be the idea. Let's just use the 1.8 million dollars

Okay, 10 years time you've got 1.8 million dollars sitting in Bitcoin. You

can now borrow up to 50% of the value of

that Bitcoin so you could borrow out $900,000 from

the financial institution and here's the benefit we're doing that one

is you're not selling the Bitcoin so you're still going to keep exposure

to the market because it could still go up and as you can see over that

up to 20 years it's going to go up to 32 million

dollars. So why would you want to sell the 1.8 million

and miss out on the on the potential gains? So you

keep the Bitcoin and by keeping the Bitcoin you now don't have

to pay any capital gains tax. And by

borrowing the $900,000 or up to $900,000 on

that Bitcoin, that is a loan. So that is

now not treated as income. So again, it's not

a taxable event. So you're going to get the full $900,000. Now, admittedly,

yes, there is going to be some interest component on that. But

as in the property scenario at 7%, I haven't

taken into account any tax deductions, any income

from the property. I'm just looking at just comparing growth for

growth. That's it. Not any other tax benefits. Because

you might find that with property, you're writing some things off there, renovations, or

maybe you're flipping the property, which is fine. But if you're in a position where

you can't buy any more property, this could be the

option for you. And you might even find that after 5 to

10 years, you might be questioning why you're even in property altogether.

Hey, just quickly, if you're ready to dive deeper into crypto and Bitcoin and

build real wealth, join my free crypto collective

community. It's where I share exclusive insights and strategies and

live discussions to help you succeed, whether you're a beginner or

scaling your portfolio. Click on the link in the description and join

us today. Now back to the episode. So guys, the point of

this video is just to simply get your mind thinking about

the possibilities and the potential of investing in what

I consider the greatest asset of our

generation. It is generational wealth that

equals Bitcoin. Now, all that said, I'm giving you all these amazing

numbers, but there's something that I'm not telling you.

And I'll tell you now. And that is that it really comes down

to your own self-belief in the asset and potentially

if you have a wife or a husband that's also

going to be involved. So let me tell you a quick little side note story about

myself because you're going to say, well, Matt, you've got properties. Are

you now selling all of your properties to put it into Bitcoin? And

what I will say is it has been a journey for me. So as over the last

few years as I've been more educated in the Bitcoin space, I

start thinking about, why am I holding onto these properties? And

only in the past 12 months, I came to the realization, well, not

only did I move all of my superannuation over

into Bitcoin, and for most people, when I say that, their jaw

drops to the floor because, again, we're indoctrinated in Australia thinking

that superannuation is the lifesaver for

our retirement, which I hate to say it again, but please

go and search some of my self-managed superfund videos on

transferring that into Bitcoin because I think it's something that you should definitely look

at because you will start realizing that probably the

superannuation you've got now is not going to cut it when you retire. But that's a

side note. So I have a wife, she's an amazing woman and

I've had to, I guess, bring her along the journey as

well because her money is my money and my money is her money.

We're in it together, right? We're on the same wealth creation journey.

And so you can't just come up with these ideas like

what I've just presented to you and then just go to your wife or

husband and say, okay, that's it. We're now just going to sell everything or we're now going to put

all this money into Bitcoin. You've got to do the research and educate your

partner on why this is the best thing in

our situation and present her the facts or him the facts and

then make the decision together. So over time, as I've said, I've moved

all our superannuation into Bitcoin and then the next step

from that, once that was sort of worked out and things are looking great, then

it's looking at the properties like, is this property serving

us the best and i can tell you that right now i'm

in the process of selling uh one of my commercial properties that

will net me about five or six hundred thousand dollars and i'm going to move

all that into bitcoin now that is again

for most people a huge deal but it takes time as

you progress down this journey of understanding bitcoin so That

is probably the biggest hurdle a lot of people I speak to even when they're at the

very beginning of wanting to put a hundred dollars in or a thousand dollars

in of their of their money there's always a roadblock and

Most times it's the partner. Okay, because they

don't believe in the asset and it's only because don't

understand it and that's why you've got to educate them and bring them along the journey

with you. So now that we've looked at the property versus

Bitcoin in a macro level and looking at the growth of each one, let's

break it down into each asset class and discuss the

the pros and the cons for you to consider. So one

of the pros with property is that it creates

cash flow through rental income. The other thing you can do with property

is increase its value through things like renovations or

developments. And it's a tangible, physical

asset, which some people love the idea of going to

visit the property and touching it and seeing it. And depending

on how you look at real estate, you would say that it is a more stable

asset as opposed to the volatility of the

property. So in Australia, it's not usual that

you see 50% or 60% drops in

real estate. I mean, can that happen? Sure. If you're investing

in the wrong property and things like high-rise units, for

example, particularly in Sydney and Melbourne, they haven't moved in

value for some of them over a decade. So you've got

to be careful in that respect. Some of the cons when it comes to property, and

this is probably one of the biggest ones lately, particularly with

residential property, is increasing government regulations.

Things like rental caps, So it dictates how much you

can and can't charge or how much you can increase it by. There's

also things like this on a basic level, you now can't even decide if

a tenant is to bring in a pet into your property. That

is now basically illegal. You can't discriminate based

on pets. But you might not want a pet in your property. And

that should be your decision. But unfortunately, because the government hasn't

met the demands of properties, as

in reducing red tape, green tape, black tape, and

having a huge migration intake, it

has really, really stuffed up the residential sector

and housing within Australia. So they're now shifting the

blame onto private investors of properties,

and therefore regulating it to the hilt, including things like Airbnb.

If you look at somewhere like Melbourne or Victoria, they've

now got a Airbnb tax. So trying

to move people out of the rental market. That's

why most of my properties are actually in commercial space. The

other thing to think about with properties is you've got an ongoing cost

of maintenance, property agents, fees,

and land taxes. That is a big one. Whereas

with Bitcoin, you don't have those ongoing costs. Well, there's so many pros

when it comes to Bitcoin. And if we look at it just compared to property,

one is there's no tenants. You don't have to worry about them at all. There's no tradespeople, there's

no agents, no maintenance, no taxes, no

government agencies to deal with. It's completely maintenance-free.

Okay, as long as you've got a computer, you're good. The other great thing

about Bitcoin is it's portability right

with property let's just say you want to move overseas and you want to take all your

assets with you you can't just pick up the property and take

it with you right just not going to happen but with bitcoin you

can just move overseas and the bitcoin comes with you no matter where

you go okay so some of the cons to think about with bitcoin probably the

number one thing is it has no direct cash flow, unlike

property that obviously gets some sort of a rental income. The other thing would be volatility

in the short term. Now, for me, I actually like volatility. Now,

it can be volatility not just to the downside, which is what a lot of

people think about when you say volatility. They think, oh, the market's just crashing. But

it's also volatility in the market to the

upside. So for example, just in November 2024, it

went up like 40 plus percent. So that was volatility to

the upside, which is a great thing for Bitcoin. So when you're thinking

about property versus Bitcoin, there are many different voices and

many different opinions. But I can tell you that even some

of the big players in the Bitcoin space, they're even

talking about selling Bitcoin to buy real

estate. Whereas myself, I talk about selling

real estate to buy Bitcoin. And it really depends on where you are in

your journey. What I have found is that the younger you are,

let's say you don't have real estate, but you do have Bitcoin, it

might be something to think about to sell the Bitcoin or leverage against the

Bitcoin to buy property. Now, I'm not talking about an investment property, maybe

it's your very first property. So I have no problem with that. We

love to have our own castle and I've got my own castle and

I think there's nothing wrong with that. But as far as investing goes, I

dare say that as we move into the future, I will offload probably

all of my investment properties and allocate those profits

into Bitcoin. And so it really comes down to your own

personal preference, your own risk profile, and

what you want to see for yourself and

your family into the future. So guys, as we focus on

the future, in my opinion, Bitcoin offers unmatched

growth potential and flexibility for long-term generational

wealth building. And if you'd like to know more, look at different scenarios when

it comes to property and Bitcoin, make sure you jump into my

Crypto Collective community. It's free. There's lots of

resources there. Look forward to seeing you then. Take care. Thanks

for tuning in to Crypto Collective. If you've enjoyed this episode, the

best way to show your support is to leave a five-star review on

Apple Podcast or Spotify and make sure to subscribe to

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of me I'm Matthew Fraser on all