The recent market crash in the cryptocurrency world has changed the landscape. The industry is seemingly awash with rags-to-riches tales of those who made fortunes overnight. However, recent developments mean the picture has changed drastically.
Whilst it may seem tempting to be drawn in by the portrayal of the new crypto landscape as a fast-track to wealth, there are notable drawbacks. Recently, they have been exemplified by the many headlines and viral trends about the crypto market crash.
Major losses and regulatory concerns are frequently associated with the tumultuous world of cryptocurrency. Extreme fluctuations of digital currencies are commonplace. This does little to pacify the nerves of investors.
The property boom
With the cost of living increasing and inflation rising, having a source of trustworthiness within markets is crucial. The current property boom is a perfect demonstration of this, illustrating strength and reliability within the housing sector. This is good news, as other markets are displaying volatility and uncertainty.
There has been no sign of a property market crash, with the recovery of the industry very strong after the pandemic. Particularly in London, as demand for housing soars.
In May 2022, JOHNS&CO recorded their busiest month on record for lettings, showing that rental uptake as well as the buying and selling market is very healthy indeed.
Even against the backdrop of the pandemic, property continues to provide an investment opportunity for people. On the other hand, the crypto market crash has been well documented in recent months. Large-scale losses and lost investments have become all too common.
Crypto market crash
The collapse of the Luna cryptocurrency meant Ether, the second largest crypto token in the world, lost a third of its value. Bitcoin crashed to an 18-month low in May, and in July, high-profile crypto lenders filed for bankruptcy, causing its value to plummet further.
Ultimately, the unpredictability of crypto can be appealing and dangerous in equal measure. The reliance of investor sentiment is stark, unlike property, where this is much less of a factor.
Of course, property can be affected by extenuating circumstances. Particularly in the current climate, with ongoing economic and geo-political issues.
But generally, property is a much safer bet, as it will always provide a strong investment opportunity over the long term. The physical entity that buying a property provides means it is a tangible asset. Whereas the uncertainty of crypto means that control over your investment is virtually non-existent.
Although an investment opportunity is still apparent to an extent within crypto, there is no defined pattern the market can be tracked by. Instead, reliance is built upon a small cluster of high-profile investors that influence markets through public backing.
Equally, cryptocurrencies are generally decentralised, meaning that regulation of the industry is effectively obsolete. This is despite this being one of the main USPs for crypto investors.
On the flip side, the regulation of property is effective and robust, with transparency at the heart of the industry. In the UK, the framework that safeguards the industry ensures investments are extremely well protected, thus removing the element of volatility that exists within other asset classes.
With inflation rising, it may act as a deterrent to those thinking of purchasing. However, property is an inflation-beating asset, meaning the time to make a purchase is actually beneficial.
Unlike other markets, data sets and historical trends are evidenced over a sustained period of time to determine how people will act in the property market. During times of economic adversity, this is crucial to determine current market trends and behaviours.
Although the future can never be foretold, it cannot be underestimated how important investors perceive predictability, stability and clarity. This is something which the property market has in abundance.
As economic uncertainty remains prominent, you do not have to look too far back to see how well the property market can recover from challenging periods. The confidence gained from the post-pandemic recovery of the market should serve as a clear indicator that property still remains the most viable investment opportunity for people today.
Contact JOHNS&CO today
Investing in property safe and sensible, and it is also potentially lucrative. Other asset classes are suffering, whilst the property sector is thriving. As more people return to the capital following the pandemic, the demand for property in London is high. Now could be the perfect time to buy a new home.
If you are considering purchasing property in London, then JOHNS&CO can offer advice and guidance. We’re industry experts, so if you’re looking to buy your first home, or you are an existing homeowner looking to relocate, we can help.
Discover some of the best properties across London with JOHNS&CO. We have offices located across the capital and can help assist you in making the right decision.
Contact us today to speak to one of our professional experts, who will be on hand to assist with all your enquiries.