Bitcoin millionaires now favor real estate over luxury cars
Cryptocurrency millionaires are now investing in real estate rather than luxury cars.
According to one study, 9 cents per crypto dollar is contributing to a surge in home purchases.
The surge in #bitcoin prices in 2017 has been linked to skyrocketing home prices.
The perception that early bitcoin investors dabbled in luxury goods like Lamborghinis is changing.
A recent study shows that crypto millionaires are now putting their new wealth into real estate investments, indicating a more mature consumption pattern.
According to the study, which involved researchers from renowned institutions such as Brigham Young University, Northwestern University, and Imperial College London, the rise of #cryptocurrency wealth is having a noticeable impact on the U. S. real estate market.
The analysis, published by the Federal Deposit Insurance Corporation, used 13 years of data on 60 million people. It showed that for every dollar of unrealized gains in #cryptocurrencies , about nine cents of household spending is lost.
While social media often glorifies lavish spending on luxury cars and jewelry, the real economic impact of cryptocurrency wealth was more subtle. The study notes that cryptocurrency millionaires tend to invest in housing. This is more like a traditional stock investment than a fleeting lottery #win .
We estimate that household spending on cryptocurrencies is closer to traditional stock investments," said Darren Aiello, an assistant professor of finance at BYU.
This trend was particularly pronounced in 2017, when bitcoin went from about $950 to $14,000. The researchers found that home prices rose significantly more in neighborhoods where cryptocurrencies flourished than in neighborhoods where they did not.
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