SYDNEY, July 27, 2017 /PRNewswire/ -- With the Bitcoin craze sweeping the world, it's no wonder people try to hop onto the gravy train. The electronic currency swept onto the investment scene in 2008, attracting instant attention with its ability to bypass banks -- and thus cut out the proverbial middle man. More money in their own pockets and less in the banks' coffers -- one can see why the currency attracts investors in droves.
"Not so fast," says Zaki Ameer, of Sydney-based real estate investment firm Dream Design Property (DDP). The very thing that gives the currency its seductive appeal may just blow a hole in investors' dreams. Since the currency exists only on the Internet, it not only evades the banks' hands, but also those of law enforcement. "No buyer protection," says Ameer, "exists for those who invest in the virtual currency."
"Hackers and scammers," advises Ameer, "will be attempting to steal your Bitcoins when any chance arises." In fact, Ameer points to reports that since 2011, more than 13 thousand victims have lost a total of 11 million dollars from Bitcoin scams. As criminals become more tech-savvy, Bitcoin will become all the more risky. With no buyer protection and no legal recourse, these investors will be simply out of luck.
That's not all. Bitcoins, Ameer says, "are extremely unpredictable." In fact, he points out, in a 2014 interview with NewsBTC.com, financial expert Mark T. Williams indicated that Bitcoin's volatility is seven times that of gold, eight times that of the S&P 500, and 18 times that of the U.S. dollar.
Because the currency fluctuates without control, it can "severely impact" investors' portfolios, according to Ameer. The reason? Bitcoin has no valuation guarantee. This means, he says, that if a great number of Bitcoin buyers leave the market, their coins will get "dumped back into the system." This, in turn, will decrease the value of the currency. Such risks, according to Ameer, make putting money into Bitcoin more like gambling than a solid investment.
There's an alternative, says Ameer: real estate. While it's true that Australian investors can't bypass banks' involvement, the value of real estate, particularly in the Sydney area, is on the rise. Furthermore, real estate, unlike Bitcoins, is a stable market. With rental payments pouring in, investors can look forward to healthy profits, says Ameer. If investors have chosen properties in a growing area, the property may even yield a major increase in value over time.
Even though real estate investments may take longer to show significant profits, investors can't lose their properties to hackers and thieves. They're tangible assets that can't hide within some hacker's code. Even more important, they generate an income stream, unlike Bitcoin.
The important thing to remember in any investment, cautions Ameer, is that if it looks too good to be true, it probably is. Bitcoin -- and other types of investments that allow little scrutiny -- offer little to no protection in case things go sour. For savvy Australians, advises, Ameer, it's better to grow money slowly but securely than to take a huge gamble on a risky venture like Bitcoin.
Dream Design Property provides clients with opportunities to invest in real estate hotspots Sydney, Melbourne, Brisbane, Adelaide suburbs. With over 1100 property deals done and staffed with expert property experts, the company helps its clients become more informed real estate investors through education and handholding the client throughout the property investment journey.
Contact:
Matt Wilson
General Manager - DDP
M: +61 (0)405378795
