Who is investing in crypto\blockchain?

[Matthew Terry]

Hello BP Mates,

I'm a new REI investor, started at the beginning of 2020 and I now have a portfolio of 6 SFH acquired over the last 16 months. I'm taking a pause to see how the portfolio runs, to save up cash to expand into small commercial, and to hopefully see some cooling in the market over the next year or two. Cap rates are stupid low and I don't have the time or the network to look for off-market distressed opportunities right now.

I'm now investing relatively small amounts in cryptocurrency and I've made the decision to have 10% of my net worth in various blockchain technology assets. It is the wild west with very high risk and even higher returns and I'm investing with a mix of pure speculation and dedicated research into each project and how competent the management team is and what problems they are solving in the world. Just like people who invested in Etherium or Bitcoin 10 years ago who are now millionaires many times over, I anticipate massive profits for me over the next 5 years. If\when I hit the lottery, I will cash out a large portion of it, pay my taxes, and invest the leftovers into RE, reducing my net worth exposure to crypto back down to 10-15%. I see it as a very risky, but much less time-consuming and much higher risk\reward ratio alternative to flipping to raise capital for buy and hold. I started investing in crypto about two weeks ago and I have a 1300% annualized return, but I chalk that up to dumb luck that coincided with a decent dip in the market when I started investing. (BTC went down to $46K now its over $57K, other coins are doing even better)

I'm curious if other RE investors are investing in cryptocurrency and how this might work into your REI strategy for gaining capital. I've also been researching how blockchain technology can be leveraged in the real estate industry to provide more efficiencies and there are some fascinating use cases, like: tokenizing deeds, instant loans, more efficient insurance, etc.