Real estate is the new luxury for Bitcoin millionaires.

The narrative of early Bitcoin investors investing in extravagant luxury items like Lamborghinis is changing.

Recent studies indicate that crypto millionaires are channeling their newfound wealth into real estate investments, indicating a more mature spending pattern.

Bitcoin millionaires are on the rise.

According to a study involving researchers from prestigious institutions such as Brigham Young, Northwestern and Imperial College London, the rise of crypto wealth has had an impact on the US real estate market.

Their analysis, presented to the Federal Deposit Insurance Corporation, used data from 60 million people over 13 years. It accelerates household spending to nearly nine cents for every dollar spent on non-crypto profits.

While social media often praises spending on luxury cars and jewelry, the actual economic impact of crypto wealth is more subdued. The study highlights the propensity among crypto millionaires to invest in real estate. This parallels traditional equity investments rather than a fleeting lottery ticket.

Darren Aiello, an assistant professor of finance at BYU, said: “Our estimates indicate that household spending is more closely related to the patterns of traditional equity investments than crypto profits.

Read more: Who will own the most Bitcoins in 2024?

This trend was particularly evident in 2017 when Bitcoin rose from $950 to $14,000. Researchers found that house prices increased faster in areas with high levels of crypto participation than in areas with crypto-centricity. In particular, homes in these crypto-rich counties appreciated an additional 43 basis points over the 12 months.

What's more, a separate analysis of crypto-brokerage withdrawals showed that large withdrawals soon led to an increase in housing costs.

“One in 20 households that took $5,000 out of their cryptocurrency exchange account bought a home for the first time,” said Jason Kotter, another finance professor at BYU.

The shift to real estate investment among Bitcoin millionaires reflects a strategic approach to wealth management. It differs from a distorted spending picture.