{"id":1642,"date":"2018-05-07T09:00:28","date_gmt":"2018-05-07T09:00:28","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=1642"},"modified":"2022-11-15T08:23:57","modified_gmt":"2022-11-15T08:23:57","slug":"cryptocurrency-vs-real-estate-crowdfunding","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/","title":{"rendered":"Investing in Cryptocurrency vs. Real Estate Crowdfunding"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_51_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-69f349f93803e\" ><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-69f349f93803e\"  type=\"checkbox\" id=\"item-69f349f93803e\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-5'><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5'><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5'><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/#What_is_Cryptocurrency\" title=\"What is Cryptocurrency?\">What is Cryptocurrency?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/#Real-Estate_Crowdfunding_Investments\" title=\"Real-Estate Crowdfunding Investments\">Real-Estate Crowdfunding Investments<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/#20-Year_ReturnRisk_Profile_Across_Major_Asset_Classes_1993-2013\" title=\"20-Year Return\/Risk Profile Across Major Asset Classes (1993-2013)\">20-Year Return\/Risk Profile Across Major Asset Classes (1993-2013)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/#Advantages_of_Real_Estate_Crowdfunding\" title=\"Advantages of Real Estate Crowdfunding\">Advantages of Real Estate Crowdfunding<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h5 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><b>Introduction<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Bottom line. Everyone wants to enjoy the prospect of not having to work our entire life. And yes! This can only be achieved through the right investments. There are several ways of doing investments; however this blog will elaborate on two \u2013 investing in cryptocurrency vs. real estate crowdfunding.<\/span><\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"What_is_Cryptocurrency\"><\/span><b>What is Cryptocurrency?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Cryptocurrency is commonly viewed as a medium of exchange that is created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary units and to verify the transfer of funds. It has no physical form and no central authority or middlemen controlling it. Bitcoin is the best known example of cryptocurrency, comprising the bulk of the market share, at 60.8%. Bitcoin is a digital currency or asset that enables payment in a decentralised peer-to-peer (P2P) network that is powered and approved by the consensus of its users.<\/span><\/p>\n<p style=\"text-align: left;\"><i><span style=\"font-weight: 400;\">Note: There is much more that can be said about cryptocurrency, however that is not the purpose of this post.<\/span><\/i><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">From an investment perspective, unfortunately cryptocurrency seems to fall short. Instead, the traits of cryptocurrency are more similar to either \u201ctrading\u201d or \u201cgambling\u201d. This is because if you put your money into cryptocurrency, the odds are either you will make lots of money or you will lose every cent of it. Stability seems to be missing in the dictionary of cryptocurrency, which is further affirmed by its volatility behaviour. For example, from November 8<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> 2017 till November 12<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> 2017, there was a drastic drop of 21% in bitcoin price BECAUSE of the elimination of anticipated plans to alter its underlying technology. That\u2019s all! Then suddenly the price escalated to almost double the following week!<\/span><\/p>\n<p><!-- [if lte IE 8]>\n<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/v2-legacy.js\"><\/script>\n<![endif]--><br \/><script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/v2.js\"><\/script><br \/><script><br \/>\n  hbspt.forms.create({<br \/>\n\tportalId: \"2627399\",<br \/>\n\tformId: \"bba04de7-5725-459c-a309-dc8abc86ab1a\"<br \/>\n});<br \/>\n<\/script><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">From an Islamic perspective, volatility which shares similar traits to uncertainty serves as a negative element in fiqh muamalat (Islamic jurisprudence), and falls under the same category as riba\u2019 (usury) and maysir (gambling). This is generally prohibited in Islam. Similar sentiment is shared by <a href=\"https:\/\/ethis.co\/blog\/is-bitcoin-investment-halal\/\" target=\"_blank\" rel=\"noopener noreferrer\">Prof. Dr. Humayon Dar, Chairman, President and Chief Executive Officer (CEO) of UK-based Edbiz Consulting Limited<\/a> when he highlighted that <\/span><i><span style=\"font-weight: 400;\">\u201cbitcoin is the biggest fraud of the present time, as it is deceptive in name (it is not a coin), presented as outcome of mining (again deliberately misleading), and has no intrinsic value (against initial claims of those who started it); it is not money at least as of now and is just a useless overpriced security being purchased by speculators driven by greed\u201d.<\/span><\/i><\/p>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Real-Estate_Crowdfunding_Investments\"><\/span><b>Real-Estate Crowdfunding Investments<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Real Estate Crowdfunding is the exact opposite. With real-estate crowdfunding, there is high likelihood that investors will end up with profits, and it\u2019s unlikely that investments will go to zero. Among the major asset classes, real estate (office, retail, industrial, and multi-family) has by far the best risk-adjusted returns (as illustrated below).<\/span><\/p>\n<h4 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"20-Year_ReturnRisk_Profile_Across_Major_Asset_Classes_1993-2013\"><\/span><b>20-Year Return\/Risk Profile Across Major Asset Classes (1993-2013)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: left;\"><img decoding=\"async\" class=\"aligncenter wp-image-1664 size-large\" src=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-1024x1024.png\" alt=\"Real estate crowdfunding\" width=\"1024\" height=\"1024\" srcset=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-1024x1024.png 1024w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-150x150.png 150w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-300x300.png 300w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-768x768.png 768w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-32x32.png 32w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-50x50.png 50w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-64x64.png 64w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-96x96.png 96w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/Artboard-1-128x128.png 128w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p style=\"text-align: left;\"><i><span style=\"font-weight: 400;\">Source: Thomson Reuters Datastream, Data from 1993-2013<\/span><\/i><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Alongside all the positive effects of real estate investment, real estate crowdfunding investment extends further by enabling investors to access the real estate market while mitigating some of the inherent risks found in all investments. These are some of the advantages of real estate crowdfunding.<\/span><\/p>\n<h4 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Advantages_of_Real_Estate_Crowdfunding\"><\/span><b>Advantages of Real Estate Crowdfunding<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: left;\"><img decoding=\"async\" class=\"aligncenter wp-image-1663 size-large\" src=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-1024x1024.png\" alt=\"Advantages of real estate crowdfunding Ethis\" width=\"1024\" height=\"1024\" srcset=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-1024x1024.png 1024w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-150x150.png 150w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-300x300.png 300w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-768x768.png 768w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-32x32.png 32w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-50x50.png 50w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-64x64.png 64w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-96x96.png 96w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/04\/Artboard-2-128x128.png 128w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p style=\"text-align: left;\"><i><span style=\"font-weight: 400;\">Source: Peerrealty.com<\/span><\/i><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">As highlighted above, it is clear that real estate crowdfunding offers a lot of benefits to various groups of investors. <\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">An emerging form of real estate crowdfunding focuses on portable social housing developments in Indonesia on <a href=\"https:\/\/www.ethiscrowd.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ethiscrowd.com<\/a>, the world\u2019s first real estate <a href=\"https:\/\/ethis.co\/blog\/islamic-crowdfunding\/\" target=\"_blank\" rel=\"noopener noreferrer\">Islamic crowdfunding<\/a> platform. Ethiscrowd.com provides a win-win situation for investors. When you invest with Ethiscrowd.com, you automatically take part in a noble act &#8211; providing homes for the needy, while at the same time earning a healthy return. <\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Thus far, all of the completed social housing development projects investments under Ethiscrowd.com have provided stable return to investors. \u00a0However investor need to be aware that there is always the risk of delay, and although unlikely, there is also the risk of capital loss. Risks can be lowered by diversifying your investment into multiple projects and campaigns available on the platform.<\/span><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">It is noteworthy to highlight that through investments with Ethiscrowd.com, investors are directly helping to provide homes for the ummah and needy communities.<\/span><\/p>\n<p style=\"text-align: left;\"><b>Conclusion<\/b><\/p>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">Finally, whether it is cryptocurrency or real estate crowdfunding, investors should carefully consider their own investment priorities, objectives and risk appetite. In most cases, when investors are interested in real estate investment opportunities, they may usually find real estate crowdfunding to be right for them.<\/span><\/p>\n\n\n<p>Check out the<a href=\"https:\/\/ethis.co\/id\/discover\/\" target=\"_blank\" rel=\"noreferrer noopener\"> Ethis platform<\/a> here and understand better how crowdfunding campaigns actually work. For more information on the campaigns or to know more on crowdfunding investments, contact <a href=\"mailto:maryam@ethis.co\" target=\"_blank\" rel=\"noreferrer noopener\">maryam@ethis.co.<\/a><\/p>\n<div class=\"rns\" data-title=\"Investing in Cryptocurrency vs. Real Estate Crowdfunding\" data-tags=\"\" data-categories=\"Crowdfunding,Halal Investment,Real Estate Crowdfunding\" data-comments=\"0\" data-date=\"1525683628000\" data-author=\"Shabana Binte Mahmoodul Hasan\" data-single=\"\" data-url=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/\"><\/div> <!-- Check out https:\/\/reactandshare.com -->","protected":false},"excerpt":{"rendered":"<p>Introduction Bottom line. Everyone wants to enjoy the prospect of not having to work our entire life. And yes! This can only be achieved through &hellip; <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/ethis.co\/blog\/cryptocurrency-vs-real-estate-crowdfunding\/\">Read More &rsaquo;<\/a><\/span><\/p>\n","protected":false},"author":20,"featured_media":1665,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":""},"categories":[7,1753,1996],"tags":[],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2018\/05\/andre-francois-556746-unsplash.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbDwgm-qu","_links":{"self":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/1642"}],"collection":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/comments?post=1642"}],"version-history":[{"count":1,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/1642\/revisions"}],"predecessor-version":[{"id":6623,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/1642\/revisions\/6623"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/media\/1665"}],"wp:attachment":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/media?parent=1642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/categories?post=1642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/tags?post=1642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}