Summary:
Grant Cardone has shifted from being a Bitcoin skeptic to a Bitcoin bull.
He emphasizes the scarcity of Bitcoin, capped at 21 million coins.
Cardone believes in the synergy between Bitcoin and real estate.
He advises against saving cash, calling it a “loser’s bet.”
Investors may leverage their Bitcoin instead of cashing out for property.
Grant Cardone, a prominent real estate investor, has traditionally focused on real estate as his primary asset class. He has never invested in gold or stocks and was once a skeptic of Bitcoin. However, he has recently transformed into a Bitcoin bull, actively accumulating the cryptocurrency.
In a recent interview, Cardone shared his reasons for this shift. He highlighted the synergy between Bitcoin and real estate, emphasizing that both asset classes are valued for their scarcity.
The Built-in Scarcity of Bitcoin
Bitcoin is capped at 21 million coins, with only about 1 million left to be mined. Once all Bitcoin is mined, it cannot be reproduced, unlike fiat currencies which can be printed at will, leading to devaluation over time. Cardone described saving cash as a “loser’s bet.”
Similarly, real estate also experiences scarcity. Although new properties can be built, they can only be constructed on available land. This inherent limitation parallels Bitcoin’s fixed supply, reinforcing Cardone’s bullish outlook on the cryptocurrency.
A Natural Symbiotic Relationship
Cardone believes that Bitcoin and real estate share a “natural symbiotic relationship.” He asserts that as Bitcoin continues to appreciate, investors will be less inclined to sell their holdings. This is due not only to Bitcoin's scarcity but also to the potential for capital gains. Instead of cashing out their Bitcoin to buy property, investors may choose to leverage their crypto holdings as collateral for loans.
Furthermore, Cardone pointed out that a significant amount of Bitcoin is effectively lost due to users losing access to their wallets, further decreasing the available supply on the market. This factor contributes to the overall increased value of Bitcoin as fewer coins circulate.
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