Real estate as an asset class has been a source of increasing affluence as many older individuals in top-tier Asian cities, such as Singapore and Hong Kong, have seen their wealth soar due to rising property values. While some members of these generations may be cash-poor, they often have substantial assets, primarily in real estate.

In Hong Kong, for instance, parents who fully own their property are likely to be millionaires already, even if it’s just a tiny one-bedroom apartment. However, for younger generations, including millennials and Gen Z, the ultra-high property prices aren’t just a challenge — they’re a significant financial burden. Many of these owners are weighed down with long-term mortgages that have high interest rates, and are thus struggling to ascend the social ladder. In other words, rapid urbanization means that younger individuals are unlikely to build the same level of wealth through real estate as their once parents did.

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Even though accumulating wealth through real estate may no longer be realistic for young adults, many of them still consider this their only choice, as there aren’t too many obvious alternatives. Some simply can’t keep up as the real estate market continues to inflate in various Asian cities. Soon, they’ll find themselves in a downward financial spiral.

Amid this dilemma, some experts advocate for alternative investments such as bitcoin. Viewed as a form of “virtual real estate,” bitcoin presents a unique opportunity for younger investors: with a capped supply of 21 million units, bitcoin is rarer than most real estate options. Its highly liquid market allows investors to trade BTC anytime they want, without the barriers associated with property ownership and hefty down payments. This makes bitcoin an intriguing investment option.

In each generation, wealth is often transformed and redistributed, and bitcoin could play a pivotal role in this transition. Data indicates that younger people, driven by their tech savviness, are generally more open to cryptocurrency investments.This generational shift suggests that bitcoin may be crucial for the process of transferring wealth from older generations to younger ones.

Source: Crypto Investment Literacy Report presented by Bybit

Bitcoin represents a new frontier for wealth accumulation among younger generations. Instead of pursuing increasingly expensive real estate, younger investors might consider allocating funds to bitcoin.

It’s crucial, however, to approach this investment with a long-term mindset — that is, with an intention to hold onto bitcoin, much like one would with residential property — rather than to engage in speculative trading. This responsible and prudent approach is key to building enduring wealth in an increasingly challenging financial landscape.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.