In recent years, it has become increasingly difficult for young people to enter the housing market. Even in Hungary, where the government keeps trying to please the younger generation. Due to the rocket-like rise in real estate prices, many people are forced to give up on building a home.
But what if there was a tool that could help with this? A tool that would not only preserve the value of your savings, but also increase it?
Bitcoin may be the answer to the problem.
Where are Hungarian housing prices headed?
Let’s take a quick look at the Hungarian real estate market.
In 2016, the price per square meter of an average second-hand apartment in Budapest was around HUF 360,000 According to KSH data. Now the same price is HUF 887,000. For new apartments, the increase is even more significant: the price rose from HUF 460,000 per square meter to over HUF 1.2 million. This is a nearly two-and-a-half-fold increase in less than a decade. Meanwhile, wages have increased, but by no means at such a pace. Buying real estate has become an unattainable luxury for many young people – even with credit.
How can Bitcoin help to overcome the increase in Hungarian housing prices?
Bitcoin, which in the beginning was just a technological curiosity for many, has now run a serious trajectory of value growth.
Let’s see what this could have meant for the Hungarian real estate market.
In 2016, when the price of one Bitcoin was around HUF 120,000, the price of a 50 square meter apartment in Budapest would have been covered by roughly 150 Bitcoins.
By 2020, when the price of Bitcoin reached HUF 2 million, this value was reduced to 15 Bitcoins.
In 2024, with a Bitcoin exchange rate of HUF 12-13 million at the beginning of the year, less than 4 Bitcoins are required for an average apartment in Budapest. HUF 35 million exchange rate and a little more than 1 Bitcoin is enough.
This means that while house prices measured in HUF skyrocketed, measured in Bitcoin they fell significantly.
Why is it better to save in Bitcoin?
The HUF – and fiat currencies in general – are constantly losing value due to inflation. If you save in a traditional way, the purchasing power of your money decreases every year. Bitcoin, on the other hand, is a deflationary asset, meaning that due to its finite supply, its value may increase over the long term. Especially if its acceptance grows globally.
Imagine that you are saving for an apartment. You buy Bitcoin instead of HUF, and you not only expect the exchange rate to increase, but also that real estate prices measured in Bitcoin will decrease. This strategy can be much more effective than traditional savings methods – provided you plan for the long term.
Of course, the Bitcoin market is not free from volatility either. The exchange rate can fluctuate strongly in the short term, which can be a risk. But for those who think long term, Bitcoin is already proven.
If you start saving in Bitcoin today, maybe in a few years you will be sitting on the terrace of your own home thinking back on this decision and sighing like this:
“Thank you, Satoshi. It wouldn’t have been possible without you.”
Are you ready to take the first step?
*** This article does not constitute investment advice. Investing in Bitcoin and cryptocurrency is risky, individual life situations must be considered before making any investment decision. ***
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<p>The post Bitcoin can be a solution to the uncontrollable housing prices in Hungary first appeared on CoinBuzzFeed.</p>
