Investing bitcoin in real estate is not a bad idea too, like you said diversifying is good considering the fact that real estate appreciates with time.
Another thing to consider is the tax involve. So one should be very careful when diversifying be ready for the risk involve
Tax or not tax, it is clearly another different matter.
I'd like to talk about a first and biggest matter of real estate investment which is more cumbersome than Bitcoin investment, from deal can succeed or not, too much time consuming issue, and perhaps potential legal problems too.
Warren Buffet answered some questions on reasons why he and Berkshire Hathaway don't have favorite in Real Estate Investment for their portfolios.
https://fortune.com/article/warren-buffett-stocks-vs-real-estate-investing-pros-and-cons/Bitcoin is a better investment asset, and why do you already owned bitcoin portfolio but want to spend your bitcoin for a worse investment choice, Real Estate?
Is it truly a better and more worthy investment option for serious consideration?