Why Real Estate Investment Companies Choose Bitcoin as Asset Allocation

In today's financial market, investment methods are constantly evolving. As a representative of traditional investment, real estate investment companies are gradually expanding into the field of digital currency. Recently, a real estate investment company purchased 1,000 bitcoins at a price of $33,525, which has attracted widespread attention from both inside and outside the industry. This investment not only accounts for 5% of its managed assets, but also marks the integration of traditional finance and emerging digital currencies.

Real estate investment companies usually aim for stable cash flow and long-term appreciation. However, in the face of low interest rates and increased market volatility, seeking new investment opportunities has become an inevitable choice. As a decentralized digital asset, Bitcoin's unique attributes have attracted the attention of more and more investors. Through this case, we can deeply explore the layout of real estate investment companies in the field of digital currency and the deep meaning behind it.

First, we need to understand the basic characteristics of Bitcoin. Bitcoin came out in 2009 and is a digital currency based on blockchain technology. Its decentralized nature makes Bitcoin not controlled by any government or financial institution, which to a certain extent improves its risk resistance. For real estate investment companies, investing in Bitcoin is not only an optimization of asset allocation, but also a prediction of the future economic situation.

In this investment, the purchase cost of $33,525 seems to be a considerable expense, but considering the price fluctuations of Bitcoin in recent years, the potential return of this investment cannot be underestimated. Taking 2021 as an example, the price of Bitcoin once soared to nearly $60,000, which means that the return on investment at that time could reach several times. Even during the price adjustment period, many analysts are still optimistic about the long-term value of Bitcoin and believe that it will become an important means of value storage in the future.

Secondly, the real estate market itself is also experiencing a wave of digital transformation. With the continuous development of blockchain technology, the transparency and security of real estate transactions have been significantly improved. Through blockchain technology, real estate investment companies can manage assets more efficiently and improve the security and convenience of transactions. The application of this technology not only reduces transaction costs, but also reduces the risks caused by information asymmetry. Therefore, incorporating Bitcoin into asset allocation is not only an investment in digital currency, but also an embrace of emerging technologies.

When analyzing why real estate investment companies choose Bitcoin, we also need to pay attention to the diversification strategy of their investment portfolios. Financial theory mentions that diversification of asset allocation is an important means to reduce investment risks. By incorporating Bitcoin into their investment portfolios, real estate investment companies can effectively achieve asset diversification and reduce the risks caused by fluctuations in a single asset. For example, during an economic recession, the real estate market may be hit hard, and Bitcoin, as another asset, may rise against the trend, thereby playing a role in hedging risks.

Furthermore, investing in Bitcoin also reflects the real estate investment company's keen insight into future market trends. As the digitalization of the global economy accelerates, more and more young investors are beginning to accept and favor digital currencies. According to relevant data, in 2021, the number of Bitcoin users worldwide has exceeded 100 million, and this huge market base provides support for the value of Bitcoin. If real estate investment companies can adjust their investment strategies in a timely manner to meet market demand, they will gain an advantage in the fierce competition.

In addition, when investing in Bitcoin, real estate investment companies also need to pay attention to the regulatory policies of the market. In recent years, governments have gradually strengthened their supervision of digital currencies, and policy uncertainties may affect the price fluctuations of Bitcoin. Therefore, when investing in Bitcoin, real estate investment companies must remain sensitive to market dynamics and adjust their investment strategies in a timely manner to cope with potential policy risks.

In this investment of 1,000 bitcoins at $33,525, the real estate investment company demonstrated its forward-looking thinking in diversified investment. This move is not only a challenge to the traditional investment model, but also an active exploration of future investment trends. Through this investment case, we can see that real estate investment companies are gradually breaking down industry barriers and actively embracing emerging markets.

In the investment of digital currencies, psychological factors also play a vital role. Many investors are often affected by market sentiment when facing volatile assets such as Bitcoin, leading to wrong decisions. However, as a professional institution, real estate investment companies have strong market analysis and risk control capabilities. When investing in Bitcoin, they can rationally analyze market conditions, make scientific investment decisions, and make full use of opportunities brought by market fluctuations.

Finally, the real estate investment company's choice of Bitcoin as part of its asset allocation reflects its flexibility and innovation ability to adapt to market changes. In the future, as the digital currency market continues to mature, more traditional financial institutions may join this field for deeper exploration and practice. As an emerging asset, Bitcoin's potential value remains to be explored, and it may occupy a more important position in the investment field in the future.

In summary, the real estate investment company's purchase of 1,000 bitcoins for $33,525 is not only an important part of its investment strategy, but also a keen grasp of future market trends. Through this case, we can see that the integration between traditional investment and emerging digital currencies is accelerating, and the future investment market will be more diversified and full of more possibilities. For investors, how to seize opportunities in this change will be a topic worth pondering.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Lincoln Avenue Capital, a US real estate investment company, announced on Twitter the day before (10) that it had bought 1,000 Bitcoins (BTC) and did not rule out buying more in the future.

"Lincoln Avenue Capital has acquired 1,000 Bitcoins at an average price of $33,525. As of July 10, 2021, the acquisition accounted for 5% of the company's assets under management (AUM). Under its investment mandate, the company may invest up to 20% of AUM in this asset class in the future."

Lincoln Avenue Capital has been active since 1998, providing asset management services to clients, focusing on middle-class, affordable real estate. According to the official website, the company currently owns 52 properties in 10 states across the United States, serving 25,000 residents and supplying more than 4,100 spaces.

It is also worth noting that they wrote in an earlier tweet: "Some people think we need governments or central authorities to respond to large-scale emergencies, but throughout history, they have repeatedly made emergencies worse."

Hodlers resume buying

And Lincoln Avenue Capital's purchase happened to catch the wave of institutional investment.

According to Bitcoin
Treasuries statistics, the current Bitcoin held by listed companies, ETF trusts or funds, government agencies and other institutions has accumulated more than 1.656 million pieces, nearly 8% of the circulating supply of Bitcoin. The largest holder is the Bitcoin Trust (GBTC) of the cryptocurrency fund Grayscale, which holds about 654,885 BTC, worth $22.4 billion.

Dylan LeClair, founder of Bitcoin investment advisory company 21st Paradigm, cited Glassnode on-chain data yesterday, pointing out that there is growing interest in long-term holdings.

"Bitcoin is back in the accumulation phase. The decline in activity means that the token is being held for the long term."