Disclaimer: This is not advice. This is information only.

In an ideal world, I would have 10 BTC tucked away in very safe location. And I would be a full-time property investor. But sadly, this is not the case in terms of BTC or property.

Now both BTC/Crypto and property are part of my investing strategy. And both are going to help me get some early Financial Independence.

Let’s imagine one BTC was worth £25,000. And you needed £25,000 to put 25% down on a rental property. If you had £25k to invest, what would you do? Buy one BTC or would you buy the rental property?

Read on to see what my thoughts are and to see my current thoughts on BTC and property …

I love property

I have always had a little thing for property. To find out, what I’ve been doing property wise over the last 20 years, you can read The Dormant Landlord.

Property is a legitimate way of getting you some early Financial Independence (FI). If you are organised and know what you’re doing it can be relatively passive. This is especially the case with single let properties from my experience.

My portfolio is made up of single lets in North East, England. I benefit from approximately £200 pcm from each property and then there is potential capital appreciation. I’m confident that all of my properties will go up over the next 20 odd years, but my focus is on cashflow.

With 7 rental properties, this means I’m making £1400 pcm cashflow. My target is £4k pcm cashflow and that will mean I am FI. If I continue doing what I’m doing (single lets), I’ll need 20 properties to reach my FI target of £4k pcm (20 x £200 = £4k pcm). If I manage to get 20 properties, this means I am FI and am a full-time property investor.

If I’m being honest, property is frustrating me at the moment. This is because it’s a seller’s market. After doing property training with PIN, I realise the importance of NOT being a motivated buyer. I will never be a motivated buyer. In the current market, I am not finding any suitable properties because I am not a motivated buyer.

This frustration really started back in May 2021. I had been looking hard for my next rental for about 6 weeks and was losing interest. At the end of May, I turned my attention to the extension on our home and this lasted 4 months.

In September 2021 I got back into physical networking after COVID restrictions and was determined to do property full time. I was determined to go out and get some deals over the line. This didn’t happen and one of the reasons is that I fell down the crypto rabbit hole.

As we move into 2022, I fully realise that there are deals out there. There are property investors who are still getting deals over the line. Serious property investors who are making things happen. This is going to be me, but I https://propertyinvestorsnetwork.co.uk/ really need help. And to get this help, I need to get out there and do much more networking. I need to build relationships and look at collaborating to build my portfolio. Maybe a JV (Joint Venture) or maybe I’ll find a suitable investor to help fund deals.

“If you always do what you’ve always done, you’ll always get what you’ve always got.” – Henry Ford

This is very relevant for me and my little property portfolio. If I continue doing single let’s by myself, I’ll continue to get average results. But if I do more networking and build more relationships, I’m 100% convinced I’ll smash my property goals and I will get that early FI I’m pushing hard for.

My crypto rabbit hole

Up until 2021, I just thought bitcoin and crypto were very risky and didn’t really take it seriously. Things have changed as I have started to understand this exciting new technology. I am convinced digital assets are here to stay and I’m convinced it is in your best interests to learn about it. But you don’t have to take my word for it. Do some research and get your head into BTC. There will be some useful links at the end of this post.

Over the last 6 months I’ve really started to understand the nasty effects of inflation and worse still hyperinflation. This has pushed me further towards BTC and crypto.

My financial literacy has improved over the last 3 years. Part of learning about money, was to learn about inflation.

I was aware of it.

I factored it in when I started investing in index funds. Like if I managed to earn 7% interest in a given year, my thinking was that I was really making 5% due to a 2% inflation rate.

So, I was aware of inflation, but I didn’t really understand inflation.

There are two types of inflation.

  1. Price inflation – when the price of goods and services goes up – like a loaf of bread or a pint of lager …. By the way a pint of Peroni in my local pub is now at about £5 a pint – absolute joke!!!!
  2. Monetary inflation – is QE or Quantitative Easing – basically governments like the UK printing lots of money and devaluing their currency… devaluing your hard earned pounds

Most people I know are aware of inflation and know what it means. But do they know how bad it is in this country and especially the United States … I’m not so sure.

Now I want to encourage you to look up hyperinflation. Look into countries like Venezuela or Argentina and the effects of hyperinflation. There are many people who literally can’t afford to buy their weekly shopping because hyperinflation has devalued their currency so much. It really is heart breaking and I really hope it doesn’t happen to the UK.

What if the rate of inflation wasn’t 4-5% and was more like 15-20%? I know this sounds unbelievable, but it is a possibility when you fully understand the effects of printing so much money.

The current financial system is broken. This is because governments and central banks are printing millions and billions and even trillions of extra fiat currency. It’s reducing our spending power year on year and leading to inflation and hyperinflation. Like many people, I’ve had enough of governments and central banks!

This is where Bitcoin and other crypto currencies come in. In my opinion BTC will solve a lot of the economic problems we currently face. Many people in the world agree and that’s why it’s getting adopted at such a fast rate.

States like Texas and Florida are pro Bitcoin and El Salvador has even made it legal tender. Any other states or countries that adopt Bitcoin, will be ahead of the game. Especially if they encourage the younger generations to learn about it. Like adding it to the school curriculum. Unfortunately, this is not the case in the UK. We don’t even get taught about money at school never mind Bitcoin and other digital assets. Remember, this is not advice, this is information only.

To summarise, I strongly believe in BTC and other crypto assets. I think it will have a major part to play in the future of money. It won’t be smooth because most governments and central banks are petrified of it. They don’t want us to adopt BTC and want us to continue with the current broken financial system. And are ok with countries like Turkey and Argentina struggling due to inflation.

Decision time

Remember the question from earlier. If you had £25k to invest, what would you do? Buy one BTC or would you buy a rental property?

Personally, I would go with the BTC. This is because I genuinely feel it would secure my family’s future. One property would help them and bring in some money each month. It would help them if they needed to sell. But one BTC will be worth a lot of money in years to come. My feeling is that it will be worth hundreds of thousands at some point within the next 10 years. Remember, this is not advice, this is information only.

What would you do and why? Like I say, my thinking is based on securing my family’s financial future. It’s because I strongly believe in BTC and other crypto assets. And it’s because I’ve had enough of the current financial system. I’ve 100% had enough of governments and central banks printing ridiculous amounts of fiat currency without consulting the people who vote them in.

Why should we have to put up with inflation of 10-15% or even higher? Why should we put up with high inflation and no wage increase?

Let me know what you think in the comments. And don’t forget to check out the links below.

Books to read

Bitcoin for Dummies

The Bitcoin Standard

21 lessons

The Crypto Book

 

… and two modern classics …

 

FI Money: Learn the hard way, teach the easy way

The Dormant Landlord

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