Bitcoin is primarily seen as an alternative to gold ($10-12 T) due to its limited supply and excellent monetary properties. In fact, however, bitcoin is a competitor to the world's most used store of value, real estate ($330 T).

 In the global financial landscape, gold has seen a shift from its traditional role as the primary store of value. Since 1971, this pivotal role has transitioned to real estate, characterized by its potent mix of scarcity and appealing financing opportunities, establishing it globally as the primary store of value. The total value of global real estate has exceeded $330 trillion. In comparison, the value of all gold ever mined, estimated at $12.2 trillion, appears modest, accounting for just over 3% of global real estate value. 

 This development coincides with the “Nixxon shock” of August 15, 1971. When US President Richard Nixxon announced that the United States would end the convertibility of the US dollar into gold. Since the adoption of a fiat-based monetary system globally, with floating exchange rates and no currency standards, the money supply has steadily increased. This has driven investors to seek protection against inflation, with real estate emerging as a favored asset. Examining the annual growth rates of the money supply (M2) and housing prices in the U.S. reveals a discernible trend. Since 1971, the money supply (M2) had a compound annual growth rate of 6.9%, while housing prices had a compound annual growth rate of 5.7%. This illustrates a direct correlation between monetary expansion and rising real estate prices, underscoring real estate's longstanding role as a preferred store of value for safeguarding wealth against inflationary pressures. However, this characteristic is increasingly challenged by the emergence of Bitcoin.
 If you think about it, #bitcoin's characteristics reflect many of the value propositions of #realestate, in addition to inherently safer custody, easier maintenance, and, most importantly, the ability to liquidate or move your wealth in times of crisis. Real estate cannot compete with bitcoin as a store of value. Bitcoin is rarer, cheaper to maintain, more liquid, easier to move and harder to confiscate, tax or destroy. Given bitcoin’s vastly superior properties as a SoV, it has the potential to absorb a significant portion of the monetary premium that real estate carries as such. If 1% of global real estate equity was reallocated to bitcoin it could drive the price to $18 million +/bitcoin. The math: $330 trillion market cap global RE x 1% = $3.3 trillion. $3.3 trillion x 118 Bank of America study multiplier = $390 trillion. Current #Bitcoin market cap = $1 trillion. Total hypothetical bitcoin supply = 21 million. 391 trillion / 21 million = $18 million per bitcoin. The price would probably be even higher as many coins were lost... We can see in real time how the market recognizes the advantages of bitcoin over real estate for storing value. Swiss Bitcoin exchange Relai has reported that 75% of its OTC volumed came from real estate investors diversifying profits into bitcoin. I expect this trend to continue, particularly in the current market environment. With bitcoin's price presenting an appealing prospect against its anticipated long-term growth, while real estate is facing challenges due to rising interest rates and lower demand, which encourages investors to look into Bitcoin.

Bitcoin Magazine

Why Bitcoin Is Digital Real Estate

The properties of bitcoin reflect many of real estate’s value offers on top of fundamentally more secure custody.

I'm working on a newsletter that will dismantle the "Bitcoin has no cash-flow" narrative. Coming ‘end of this month! If you would like to sign up for my monthly newsletter 👇. #bitcoin #realestate #housing https://leonawankum.substack.com/

Bitcoin is changing the investment landscape. Suddenly it's good for a company to be profitable so they can buy more bitcoin. Instead of just speculating on more growth and collected capital.

As a store of value, bitcoin has the capabilities of a house without the liabilities.

“There is no amount of money that can buy back your health once it has been severely disrupted.”— @The Conscious Contrarian Very true! Living a lifestyle with low time preference doesn't come easy to me, no matter how much I like to talk about it :)

The perils of hustle porn

Hustling has a great reputation in our society.

It was brought to my attention that Bitcoin’s indestructibility makes it a more resilient SoV. Not a better one. Resiliency is just one feature. That's correct. But resilience is very important in an unstable world where wealth has always been destroyed and is therefore a very important feature of an SOV. View quoted note →

Controlling the Bitcoin network would cost an attacker approx. $7.9 billion in equipment and around $2,000,0000 in energy costs per hour. Destroying a #house is much easier. It is obvious which is the better store of value. The cost of the equipment ($7.9 billion) is based on a calculation that suggests the three largest pools together account for 66.87% of the network hashrate (in June 2023), a whopping 242.42 EH/s (242 million TH/ s). An attacker would therefore need more power. To achieve this, the attacker would need more than 941,634 S19 XP Hydros - which would mean a fixed cost of almost $7.9 billion, plus a building to house the equipment, maintenance staff, electricity and cooling etc. The cost of the hashrate is based on an extremely simplified and unrealistic cost modeling based on the price of the SHA256 hashrate on nicehash (inspired by @Daniel aka Bitcoin Gandalf). If someone tried to buy this much hashrate, the would rise massively, making it more costly.

In the process of writing my book, 'Digital Real Estate,' I find myself in search of comprehensive statistical analyses that accurately determine the portion of a property's value derived from its role as a store of value. I welcome any assistance or pointers towards resources that could shed light on that aspect of property valuation. Than you!

Along with inflation and taxation, the destruction of physical wealth has historically been one of the greatest threats to the overall prosperity of humanity. But, most of humanity still uses physical goods to store value. This baffles me. What to do if a war breaks out? Even in ancient times, armies ruthlessly plundered cities and stole and destroyed the residents' belongings. I came across an interesting conversation on reddit about how war loot was divided among armies in ancient Rome.(https://reddit.com/r/AskHistorians/comments/3bdppz/how_was_war_loot_split_amongst_armies_in_the/). The destruction of housing infrastructure during the Syrian Civil War, for example, offers a stark illustration of the problems associated with storing wealth in physical assets. Over 40% of the country's #realestate stock was reportedly damaged or destroyed, along with the value stored in it, resulting in billions of dollars in economic losses. By the end of 2019, the conflict had cost Syria $530.1 billion, or 9.7 times the country's GDP in 2010. The figure covers the loss of local production, estimated at $420.9 billion. As the civil war in Syria reaches the 10 year mark, the economic cost of the conflict has risen to close to $1.2 trillion. This scenario highlights the risks associated with physical assets in conflict zones and highlights the advantage of Bitcoin as an immutable, indestructible and mobile store of value.

Today, finding focus is the ultimate superpower. Bitcoin helps. 1. There is no need to waste time worrying about making investments. 2. There is no need to waste time managing an investment portfolio. 3. There is no need to waste money on management or consulting fees.

Ever thought of bitcoin as digital real estate? Here's a simple take on it. 👇 Just like owning a piece of prime real estate in a bustling city lets you tap into the city's economic growth, holding bitcoin is like having a stake in the internet of value (the world's digital economy). In #realestate, your property's value is linked to the city's economic activities – whether it's New York's finance and fashion scenes or its bustling tourism. The more the city thrives, the more valuable your property becomes. Bitcoin works similarly but in the digital space. It's like owning a plot in the vast digital landscape. As more people and businesses use the Bitcoin network, your 'digital plot' (i.e., bitcoin) potentially grows in value. The best part? This digital plot isn't tied to any one location; it's global. So, possessing bitcoin is like having prime real estate in the ever-expanding digital world. It's a new way to be part of the global digital economy.

Bitcoin will strip #realestate of its monetary premium.

A significant portion of capital inflow into Bitcoin in the coming bull market will come from #realestate investors. Here's why 👇 1. Bitcoin is primarily seen as an alternative to gold (market cap: $10 -12 T) due to its limited supply and excellent monetary properties. In fact, however, bitcoin is a competitor to the world's most used store of value, #realestate ($330 T). 2. If you think about it, Bitcoin's characteristics reflect many of the value propositions of real estate, in addition to inherently safer custody, easier maintenance, and, most importantly, the ability to liquidate or move your wealth in times of crisis. 3. ≈ 67% of the world’s net wealth is currently stored in real estate. Given bitcoin’s vastly superior properties as a store of value, it has the potential to absorb a significant portion of the monetary premium that real estate carries as a store of value. 4. We can already observe this dynamic. While the bitcoin price is attractive due to its long-term price trend, real estate is in crisis. Driven by high interest rates and lower demand. This encourages real estate investors to buy bitcoin (see attached article). 5. I expect this trend to continue. Real estate investors understand the advantages of scarce assets in an inflationary environment. Once they realize the advantages of BTC over RE as a store of value, billions, even trillions in value will flow into #Bitcoin.

Bitcoin Magazine

Real Estate Investors Are Flocking To Bitcoin In Record Numbers, Says Swiss Exchange

Bitcoin is also rapidly siphoning capital from other traditional assets like securities and bonds, says the exchange.

5.

If #realestate is not properly cared for, its value will literally degrade over time. Bitcoin on the other hand provides the ultimate form of transferable value because it preserves the encapsulated wealth.

I'm getting more and more reactions to my posts on Nostr. I feel like more people are active here than a few weeks ago ?

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

Global conflicts: Death toll at highest in 21st century

Conflict deaths are higher than they have ever been this century with over 238,000 people killed in conflicts last year.