I understand annuities, bonds, bank accounts but bitcoin?

These rates of return surpass what bank-provided bonds and stock dividends offer.

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

This strengthens your personal credit profile and gives you greater borrowing power to build your business, acquire properties, etc.What you propose does not do that.Food for thought...

I’m aware of loss harvesting when it comes to stocks, bonds, etf’s, etc. but how can this occur with real estate?

Focus on simple, predictable renovations and strengthen your network with wholesalers, agents, and contractors.

What's next, Punxsutawney Phil choses bitcoin over US savings bond.

These rates of return surpass what bank-provided bonds and stock dividends offer.

If so I would 1031 over to a different REI class or get out and put into a 5% bond.  

Quote from @Thomas McPherson: That’s a good point about the bond market and mortgage rates.