As the CEO and Founder of TerraMatris Crypto Hedge Fund, I've often contemplated the potential of cryptocurrencies, especially Bitcoin, in various investment avenues. Recently, I received a proposal involving the use of leverage to purchase an apartment in Tbilisi using our hedge fund as collateral. This intriguing idea prompted me to explore the current real estate market in Tbilisi, particularly in terms of how many Bitcoins one would need to buy an apartment in 2024.
Real Estate Prices in Tbilisi
Tbilisi, the capital of Georgia, has seen a robust real estate market over the past decade. The city offers a range of options, from high-end apartments in central districts like Vake and Saburtalo to more affordable options in outer neighborhoods like Digomi.
Vake-Saburtalo
Vake-Saburtalo is known for its upscale living conditions, modern infrastructure, and convenient amenities. As of summer 2024, turnkey apartments in these districts are priced between $130,000 to $200,000. The average price per square meter in these areas is approximately $2,000. These figures highlight the premium nature of real estate in central Tbilisi, catering to those seeking a comfortable and luxurious urban lifestyle.
Digomi and Outer Neighborhoods
On the other hand, neighborhoods like Digomi offer more spacious and affordable housing options. Here, one can purchase a sizeable apartment for $70,000 to $90,000. These areas are attractive to families and individuals looking for a balance between affordability and space, albeit with potentially fewer amenities compared to the central districts.
Bitcoin as a Buying Power
Bitcoin, known for its volatility and high potential returns, was valued at around $67,000 in the summer of 2024. Using Bitcoin to purchase real estate is an innovative approach, reflecting the growing acceptance of cryptocurrencies in mainstream transactions.
Calculating the Bitcoin Equivalent
To illustrate, let's consider the current Bitcoin price:
- 1 BTC = $67,000
Based on this valuation, the number of Bitcoins needed to purchase an apartment in Tbilisi would be as follows:
- Vake-Saburtalo:
- $130,000 apartment ≈ 1.94 BTC
- $200,000 apartment ≈ 2.99 BTC
- Digomi and Outer Neighborhoods:
- $70,000 apartment ≈ 1.04 BTC
- $90,000 apartment ≈ 1.34 BTC
Leverage and TerraMatris Crypto Hedge Fund
Considering the use of leverage, where TerraMatris Crypto Hedge Fund serves as collateral, could potentially reduce the number of Bitcoins required upfront. This method provides an exciting opportunity to acquire real estate while maximizing the potential appreciation of Bitcoin holdings.
Real Estate vs. Bitcoin: A Decade-Long Comparison
Drawing from my recent analysis comparing gold prices to real estate, it is intriguing to ponder the future performance of Bitcoin against Tbilisi's real estate market over the next decade. Historically, Bitcoin has shown significant appreciation, outpacing traditional assets like gold. However, real estate offers tangible value and stability, often acting as a hedge against economic uncertainties.
Exploring Real Estate Prices in Riga Compared to Gold: A 2007 vs. 2023 Analysis
My Perspective
While my inner feeling leans towards Bitcoin as the smarter investment over the next ten years, it's essential to consider both asset classes' unique benefits and risks. Bitcoin's high volatility and potential for substantial returns contrast with real estate's steady appreciation and tangible utility.
Conclusion
In conclusion, the real estate market in Tbilisi offers diverse options for potential buyers, with significant price variations between central and outer neighborhoods. With Bitcoin valued at $67,000, purchasing an apartment in Tbilisi using Bitcoin is a feasible and innovative approach. As the market evolves, it will be fascinating to observe whether Bitcoin or real estate emerges as the smarter investment in the long run. My bet? Bitcoin holds immense promise, but only time will tell.