Bitcoin & Real Estate – I’m working on a book. 📖 In 2012, during my philosophy studies, I heard about Bitcoin for the first time. Since 2016, I have been working full-time in the real estate industry. For a long time I thought that real estate and Bitcoin didn't have much in common. But, this is not the case. Bitcoin and real estate are similar in many ways: hard, tangible, scarce. Scarcity has quite a lot to do with the value of things, which is why certain unique pieces of art are worth so much and why real estate in a densely populated area is more expensive than in a non-densely populated area (surferjim , 2020). Yes, RE has utility value because people pay rent to live in it or use it for production, but the value is primarily determined by the limited supply of building land. Bitcoin’s appeal also stems from the fact that its supply is limited. There will never be more than 21 M bitcoin. As a store of value, real estate competes with bitcoin. The properties associated with bitcoin make it an ideal store of value. The supply is finite, it is easily portable, divisible, durable, fungible, censorship-resistant and noncustodial. Real estate cannot compete with bitcoin as a store of value. Bitcoin is rarer, more liquid, easier to move and harder to confiscate. It can be sent anywhere in the world at almost no cost at the speed of light. This could have two consequences: 1. Bitcoin could reduce demand for real estate by acting as an easily accessible store of value that people may prefer to use for savings rather than real estate. 2. Real estate might lose the monetary premium it has accumulated in an inflationary financial system, which could flow into #bitcoin. A superior store of value. I have developed explicit strategies for real estate investors to integrate Bitcoin into their existing business processes. So that they can benefit from the digital disruption that Bitcoin represents Now I would like to take the time and compile the relevant articles that I have published into a book. The overall purpose of this book is to make people aware of the disruption that Bitcoin could bring to the real estate industry because it is a superior store of value. I will share the strategies I developed so that entrepreneurs can apply them in their businesses. I will also highlight the positive social and economic disruption caused by Bitcoin's digital disruption. The target audience of my book are RE investors and developers with an in depth knowledge about finance that want to understand why and how Bitcoin is going to disrupt the #realestate business and what particular strategies they have to learn and apply in order to benefit from this technological paradigm shift. A second target audience is people who have in-depth knowledge of Bitcoin and are interested in learning how it will revolutionize the real estate industry, the largest asset class in the world. Its disruption will therefore have fundamental implications for the global financial system and societies worldwide. Real estate is the world's most important store of value and the preferred form of collateral when banks lend money. Bitcoin will likely take on this role in the future. Digital Real Estate is thus the working title of the book. #Bitcoin #Realestate #DigitalRealEstate #book

“How did #realestate investors cope with the rising CapEx caused by currency devaluation in the 1970s?“ From research and conversations with RE developers who were active in the 1970s and 1980s, I learned that to cope with rising maintenance costs, inflation, and interest rates, landlords simply raised rents and passed the costs onto tenants. According to a business partner, this is the reason why there are rent caps in Germany, Sweden etc. In my opinion this illustrates how the fiat system, with its inherent inflation, forces rational market participants to do things (in this case, increase rents) that have negative social consequences. This is further evidence of the negative impact that central banks, currency devaluation and inflation can have on individuals, society, and the market. Bitcoin as a disinflationary money and deflationary currency system obviously offers a better alternative here. 1. Property owners can use bitcoin to protect their cash flow from inflation and are not forced to pass on the higher costs to tenants. 2. This means that, in theory, property rental costs and valuations are not rising as quickly. 3. In the best case scenario, this will make housing affordable and building attractive again in the long term.

Bitcoin Magazine

Replacing The World’s Preferred Store Of Value, Bitcoin Will Make Housing Affordable Again

As fiat loses its purchasing power over time, real estate becomes a preferred store of value and housing prices skyrocket. Bitcoin fixes this.

I would like to thank you all for the positive feedback on my last podcast. The topics of Bitcoin and #realestate fascinate me. I will be publishing a series of papers on the topic this year.

It was an honour to discuss Bitcoin & #realestate with @preston.

In a world marked by increasing violence and hostility, the ability to protect wealth with Bitcoin becomes critical.

dw.com

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Sharpening mind, body and soul. Day for day. Night for night.

With rising interest rates, #realestate has become less affordable as people cannot afford financing. Therefore, I expect people to gravitate towards buying bitcoin, an accessible and affordable store of value.

How Cannabis Affects Disciplined People.

Balancing Bricks and Bytes: The Evolving Role of Bitcoin in #RealEstate - a new article of mine is online. https://en.coinfinity.co/blog/bitcoin-and-real-estate-leon-wankum

Bitcoin is pristine collateral for lending. Since #realestate development is very capital intensive, credit is important. That is, the more bitcoin you own, the more collateral you have to finance construction. We've discussed this in detail at Bitcoin Amsterdam.

Money is highly spiritual.

Some of my thoughts on what interest rates would look like under a Bitcoin standard? 👇 In a free market under hard money, the actual or market interest rate depends on various factors, in particular the supply and demand for capital. When the supply of capital exceeds demand, the market interest rate falls, while it rises when demand exceeds supply. The market interest rate is therefore the price at which capital is exchanged on the market. A net interest rate would likely emerge naturally. We can assume that the interest rate would reflect the general time preference of people in the economy. Under a Bitcoin standard, interest rates would likely be higher, as the risk of capital loss is higher with a finite money such as bitcoin than with a fiat currency. This will likely result in higher interest rates being demanded to compensate for the higher risk. Under a fiat standard, the "risk-free" interest rate is tied to inflation. A US Treasury bond with a yield of 5-6% would be considered risk-free, among other things, because the yield theoretically compensates for the loss of purchasing power that fiat money experiences. More importantly, the "risk-free" interest rate component of fiat money refers to a country's risk of default, which is generally considered very unlikely since states are able to produce money “endlessly”. The term "risk-free" is misleading. It does not exist per se. Opportunity costs exist always and everywhere and the market interest rate depends on various factors, including the risk of capital loss. There is also a historical certainty that any fiat currency will eventually go to zero, which is often not reflected in the fiat market's "risk-free" interest rate. Under a Bitcoin standard, the lowest risk component relates to the risk of loss of bitcoin held in self-custody. When stored in cold storage, those bitcoin are the holder’s alone and not in danger of confiscation or inflation by third parties. The lowest risk return for #bitcoin is directly related to productivity. Since bitcoin is finite, the value of individual units increases with human productivity. There is a risk of not participating in the increase in the value of bitcoin (deflation) in the event of a loss. The interest rate on a loan under a Bitcoin standard would likely be the deflation rate plus a risk premium to compensate for the potential loss of bitcoin. Full article:

Bitcoin Magazine

Bitcoin Will Completely Change Real Estate Markets And Interest Rates

Bitcoin as a new variable in global markets will have a drastic effect on other market prices the larger it grows.

Have you ever wondered what the cost of rent would be under a Bitcoin standard? 👇 #BitcoinUrbanism #Housing An important factor in determining the average cost of rent in a given geographic area would be the average disposable income of a household in that area. Over time, rental prices would emerge naturally from the market. This is a very complex subject. According to the Austrian economist Ludwig von Mises, rent is not the specific revenue from land, it is a market phenomenon, where entrepreneurs are willing to take risk by investing funds in the production of a house to earn a return (rent). Mises called this “originary interest,” which refers to the markup between factor prices and the expected revenues from the sale of the finished product. The implied rate of return on a production project. When renting, the surplus money from not purchasing a house can be used for something else that is considered more important. For example, to finance a business or to save (for comparison: Under fiat, excess cash can be used to buy bitcoin). We can expect the #rent to be close to the risk-free interest rate under sound money, plus an adjustment for risk, because after all, the rental is not risk-free. The property could be damaged and rent not paid. Yes, insurance could be purchased, but it would be costly and time-consuming. The market interest rate would reflect the overall time preference of people in the economy. A risk-free interest rate would naturally emerge from the market, as will for example the average rents. Full article:

Bitcoin Magazine

Bitcoin Will Completely Change Real Estate Markets And Interest Rates

Bitcoin as a new variable in global markets will have a drastic effect on other market prices the larger it grows.

Have you ever wondered what the price #housing under a Bitcoin standard would be ? 🏛️ #RealEstate prices will ultimately depend on supply and demand. If people are willing to pay a premium for location, etc., they will. Deviation from the average will be the natural result of market forces. Overall, price movements of housing will become more closely tracked to population changes and scarcity of land. Right now land scarcity is artificial due to government regulations (zoning laws). It is likely that regulations will continue to exist as municipalities and similar entities are interested in creating a particular building appearance, but they are unlikely to be as restrictive as they are today. In general, housing would be cheaper because the level of financialisation would be much lower, as people can save in bitcoin (by default) and not have to invest to compensate for inflation. Plus, deflation would make it cheaper over time. 💫 Demand for real estate investment loans would also decrease as people can save in bitcoin. By functioning as an actual store of value, bitcoin will most likely absorb the monetary premium that real estate has accumulated over decades of monetary inflation and housing will collapse to its utility value. This would change the home buying experience. 🏠 Much of the current financial infrastructure surrounding real estate, including brokers, will become less important and partially disappear. When buying a house, rent should be considered as an opportunity cost, because the opportunity cost of owning a house to live in is that it can’t be rented out to generate additional income. 🧡⚡

#Bitcoin. 💫

#Bitcoin is creating a paradigm of digital self-sovereignty, empowering individuals with full control over their wealth. 💫

Bitcoin Magazine

Bitcoin Is A Possession, Not Property

The nature of Bitcoin as a digital asset makes it impossible to fit 1:1 into the framework of property as we know it. One can possess Bitcoin, but ...

By functioning as an actual store of value, bitcoin will most likely absorb the monetary premium that real estate has accumulated over decades of monetary inflation and housing will collapse to its utility value. View quoted note →

#Bitcoin radically changes the housing market for the better.

We often don't realize we are in the moment until it is a memory. 💫

Nothing like doing Breathwork in the morning. 💫 Connecting with the inner source. ✨