The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Gaucho Group Holdings Inc. VINO announced this month that it would now accept payment in the form of Bitcoin (BTC) for its luxurious villas nestled in the idyllic landscape of San Rafael, Mendoza — the heart of Argentina’s southern wine country. Gaucho Holdings owns a growing collection of luxury real estate, luxury brands, fine wines and other premium real estate and consumer products across Argentina. In its bid to offer diverse and innovative investment opportunities to investors around the globe, the company moved to accept Bitcoin as payment for its phase 1 homesites located throughout its more than 4,100 acres of breathtaking vineyards and countryside in the south of Argentina. Here’s what the move means for investors.
An Opportunity to Realize Returns on Crypto Investments
While cryptocurrencies can offer astonishing returns on investments, they also tend to be highly volatile. This volatility makes them less viable in longer-term investment strategies or for investors with lower risk tolerance.
For investors who want to lock in the returns they’ve gotten from their crypto investments, real estate offers a great way to transfer that value into a more stable and predictable asset. Gaucho Holdings is one of the few companies on the market that allows investors to do this directly by purchasing property with Bitcoin.
Investors can Gain Exposure to Argentinian Real Estate Market
The Argentinian real estate market has historically been an undervalued market, but Gaucho Holdings is one of the companies that has noticed its vast, untapped potential. Because it’s undervalued, real estate in Argentina presents a remarkably affordable investment opportunity, particularly in the luxury space.
Gaucho Holding’s Algodon Wine Estates luxury homes, wellness and golf resort are set among the idyllic vineyards and rolling hillsides of San Rafael in southern Argentina. With the news that Gaucho Holdings accepts Bitcoin as payment for residential lots, crypto investors can now use some of their Bitcoin to gain exposure to this undervalued, high-growth potential market.
A Great Way to Hedge Against Inflation with Real Estate
The COVID-19 pandemic forced economies around the world to react to widespread shutdowns and disruptions. A long-term consequence of this could be a dramatic spike in inflation as governments around the world raise interest rates quickly to stimulate the stagnating pandemic economy and promote post-pandemic growth.
One of the best ways to hedge against rapid inflation is with real estate. When inflation drives up prices, property values go up right along with them. So, investors concerned about how inflation might affect their cryptocurrencies or other assets in their portfolio can now move some of that over to real estate as a way to secure their portfolio against these inflationary pressures.
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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content that follows is for informational purposes only and not intended to be investing advice.
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