I uploaded the individual slides of my presentation in Riga to X. I will upload them to my website as well. But what is the easiest way to share the slide deck on Nostr? Should I just upload the PDF file?
Leon
@leonwankum@BitcoinNostr.com
npub1v5k4...8rd9
Bitcoin. Real Estate. Philosophy & Ethics. Proof-of-Work. Newsletter: leonwankum.substack.com
In my new article for @Bitcoin Magazine, I look at the benefits of using bitcoin as collateral in #realestate financing.
I look forward to presenting this topic in detail at #BH2024. 🏠 🧡
Bitcoin Magazine
Bitcoin’s Role As Collateral In Real Estate Development Financing
A look at the dynamics of bitcoin as collateral in real estate financing.
The more we value things outside our control, the less control we have.”—Epictetus
Bitcoin and Stoicism
Episode XXI. Block height: 856500. Like Stoicism, Bitcoin stands as the immutable testament to a world where value endures beyond the reach of time...
New pod on the intellectual challenges for #realestate investors to embrace Bitcoin, its potential impact on the real estate sector, and the coexistence of both asset classes. 🏠
I used to be frustrated that the so-called establishment didn't understand Bitcoin. Today, I’m grateful—they're rendering themselves insignificant.
Bitcoin and Housing: A Path to Affordability II
Landlords can capitalize on bitcoin's price appreciation, which acts as an inflation hedge, rather than solely relying on increasing rents to offset higher construction and maintenance costs due to monetary inflation. This ultimately benefits consumers, who have been particularly burdened by rising housing costs.
A phenomenon of the fiat system is the use of real estate as a speculative investment vehicle, to hedge against monetary inflation. This has many negative consequences for society. Most noticeably, it drives up the cost of living significantly. By integrating bitcoin into their financial strategy, real estate developers can maintain affordability for tenants while also benefiting from bitcoin's potential to hedge against inflation.
This approach reduces reliance on increasing rental income, helping to stabilize rent prices and ultimately benefiting tenants. This is another example of how Bitcoin can help improve everyone's standard of living. #realestate #housing
My new newsletter about real estate refinancing and the economics of using leverage when buying bitcoin is out! 🧡
PS: This chapter will be part of my upcoming book "DIGITAL REAL ESTATE". I would be happy about feedback. If you discover errors or things that seem illogical to you, please get in touch.
Real Estate Refinancing: The Economics of Leverage When Buying Bitcoin
TBN 23 - In this edition of the newsletter, I will explore the economics of leveraging real estate to buy bitcoin and explain why this strategy mak...
This is an interesting talk. I also think that the Internet is less exciting for creatives and consumers today. However, it misses the crucial aspects of Bitcoin and, most importantly, Nostr.
When will the leading platforms for independent creatives recognize the potential of Bitcoin, Value4Value, and Nostr?
I am still amazed that there is money that rewards personal development.
In the Fiat hamster wheel, you usually have to please someone, the teacher, the employer or the government, to be rewarded.
With Bitcoin, it is possible to be yourself and reach your full potential, no matter what teachers, bureaucrats or employers think of you.
Integrating #Bitcoin into Real Estate Development Financing:
Inflation severely devalues fiat currencies and erodes purchasing power. Initially, this scenario benefits the real estate sector as people invest in properties to outperform inflation, thus increasing its nominal value. Besides, inflation decreases the real cost of debt incurred to develop or purchase real estate over time, temporarily benefiting property owners.
However, in the long term, inflation negatively affects the real estate industry due to soaring construction and maintenance costs, and the diminishing value of income generated from properties. This dual impact underscores the need for an alternative strategy, such as incorporating bitcoin into credit products to hedge against the negative consequences of inflation.
My proposition is to integrate the purchase of bitcoin into real estate development financing. Allocating a portion of a loan, say 10%, to purchase bitcoin allows real estate developers to build a healthy capital base through the appreciation of bitcoin, which can be leveraged to fund maintenance, further construction, buying bitcoin or other development endeavors.
By integrating the purchase of bitcoin as part of a credit line, particularly in the inherently debt-intensive real estate sector, developers can enhance their financial resilience. This setup provides a robust financial strategy that enhances the company’s ability to navigate economic uncertainties and capitalize on the long-term appreciation of bitcoin.
It also allows developers to to hedge against the risk of real estate losing its status as humanity's primary store of value. Bitcoin offers a near-perfect digital alternative that is easier to access and cheaper to store and maintain. This strategy prepares real estate developers for a potential shift towards a Bitcoin standard, where real estate may no longer dominate, while reaping the benefits of both asset classes: real estate's cash flow and bitcoin's price appreciation. This approach can enable the private sector to become more independent of the state and thrive even amidst harsh inflationary conditions.
If you want to know what a Bitcoin-enriched #realestate loan could look like, check out my more detailed example here: 
Bitcoin’s Role as Collateral in Real Estate Development
The Bitcoin Newsletter 20 - In this edition of The Bitcoin Newsletter, I illuminate a pathway to include bitcoin in the financial framework of real...
GM 🌞 With all the nonsense going on in the world, finding inner peace makes the most sense to me. It seems as if humanity primarily learns through mistakes. Unfortunately, it also seems like there is no way to stop people from making mistakes.
GM 🌞
As an actual (almost perfect) store of value, bitcoin has the potential to correct misallocation of capital in the real estate sector and force the industry to develop better products with higher market value.
Bitcoin and Real Estate:
“How bitcoin is revolutionizing the world's largest asset class.”
(@BTC Prague)
Bitcoin and Real Estate: How bitcoin is revolutionizing the world's largest asset class. 👇
I am thrilled by the positive feedback on my talk at @BTC Prague! 🌟 Find the slides in the thread below. A specialt hanks to @Imke Wedekind & Diarie (we'll get him on Nostr) who helped me build this presentation. Stay tuned for the video release. 🧵 1/19
(2/19) After learning about Bitcoin in University, I started working in the realestate industry, which allowed me to understand two things:
1. How broken our monetary system is
2. The potential of bitcoin as a superior store of value to real estate. 
(3/19) Today, real estate is the number one store of value. Depending on your view on fiat money and debt, up to ⅓ - ⅔ of the world's wealth is stored in real estate. What created #realestate’s role as the world's number store of value ? 
(4/19) This development coincided with the “Nixon shock” on August 15, 1971, when US President Richard Nixon announced that the US would end the convertibility of the dollar into gold at a fixed rate. This ushered in a new era of fiat-money, with no currency standard at all. Since then, monetary inflation rates have risen steadily. This has created the use of reale state as the most important inflation hedge (&SoV) in the market. 
(5/19) The role of #realestate as an inflation hedge becomes clear when we compare the growth rates of the monetary supply and #realestate prices since 1971.
M2 money supply, which broadly reflects the spectrum of funds available for saving, spending, and investment, has been growing exponentially, with a compound annual growth rate (CAGR) of approximately 6.8%. 
(6/19) When we examine the development of the average price of a #home sold in the US, we observe a very similar pattern: the average sales price of #houses has risen at a compound annual growth rate (CAGR) of 5.7%, closely tracking the increase in the money supply. 
(7/19) The same trend largely applies to commercial real estate, though its growth has not been as aggressive as that of residential properties, with a compound annual growth rate (CAGR) of around 4.4%. 
(8/19) Laying all three graphs on top of each other reveals that real estate prices closely track the growth of the money supply. As new currency enters the market, people invest to protect their buying power. Real estate, with its scarcity and attractive financing options, became the preferred investment. Banks create new money as credit for mortgages, channeling it into real estate and inflating its nominal value. Its rise largely mirrors the debasement of fiat currency, emphasizing real estate's role as a store of value and its substantial monetary premium. 
(9/19) In contrary to today, throughout history, the value of land and reale state has been largely tied to its utility—whether for agriculture, living, production, or generating rental income. This trend has spanned cultures and epochs for thousands of years. Historically, real estate symbolized prosperity, often linked to its agricultural productivity and the social status and political power that came with land ownership. The elite enhanced their estates to boost agricultural output and display their wealth. However, using real estate as a form of #money to store value is a relatively recent development. 
(10/19) Many #realestate professionals mistakenly think real estate is a solid investment due to its intrinsic value from utility or cash flow. But this is a flawed concept— value is ultimately subjective. 
(11/19) #CarlMenger, a pioneer of the Austrian School of Economics and arguably an inspiration for the Cypherpunks' creation of #Bitcoin, demonstrated already in the 19th century that value is subjective. Consider a Rolex watch: its worth is not primarily a reflection of the materials or craftsmanship, but rather what someone is willing to pay for it. Similarly, real estate's high value often stems not from its utility but its use as a speculative inflation vehicle to preserve buying power against inflation. 
(12/19) Comparing real estate and bitcoin shows bitcoin's clear advantages as a store of value: limited supply, high liquidity, divisibility, and ease of movement—crucial in a world with increasing conflicts. In contrast, real estate, or 'Immobile' in German (meaning immobile), creates local dependencies and is vulnerable to taxes, confiscation, or destruction. While #realestate generates cash flow, often used to service debt, it does not necessarily prove its reliability as a store of value. Instead, its rising nominal value is more a reflection of the debasement of fiat currency. Banks profit greatly by creating money, lending it, and charging interest. 
(13/19) In 2016, the average US home cost about 1000 bitcoin; now, it's just 10. Real estate is losing value fast compared to bitcoin. To stay competitive in real estate or any field, consider changing your unit of account to bitcoin—it's repricing the world. Like many Bitcoiners, I assess #realestate based on its utility value, and it's likely the market will soon align with this perspective. 
(14/19) Bitcoin, a near-perfect digital store of value, is disrupting the real estate sector, traditionally valued for its role as a store of value. By introducing digital scarcity, Bitcoin mirrors the disruptive impact of e-commerce on retail in 1995. Both real estate and bitcoin capitalize on scarcity, but bitcoin extends this concept into the digital realm, enabling exponential growth similar to how email surpassed postal services. Its digital nature allows for faster scaling and increased efficiency. Bitcoin preserves value like real estate but without its drawbacks and liabilities, positioning it as the superior store of value for the digital age. 
(15/19) The role of real estate as a trusted store of value and inflation hedge is slowly diminishing. Digital disruption by bitcoin is reshaping the investment landscape, as people can now default to saving in bitcoin rather than having to invest in real estate, which will push property values down to their utility value. Additionally, higher interest rates and surging construction costs have made real estate development and ownership increasingly unprofitable. Coupled with rising maintenance costs due to ESG requirements and the financial exclusion of younger generations like Millennials, Gen Z, and Gen Alpha, the real estate market is facing profound structural challenges. As digital natives, these generations are more likely to gravitate towards bitcoin as their preferred (digital) store of value, further destabilizing traditional real estate investments. 
(16/19) What happens as bitcoin absorbs the monetary premium from real estate? Housing becomes more affordable, benefiting individuals and families with access to reasonably priced living spaces. But this poses a challenge: How will developers survive?
While using real estate as a speculative investment has its drawbacks, the role of the private sector in constructing housing remains important. 
(17/19) Real estate investors face a dual challenge from rising interest rates: debts inflate, bloating the liability side of their balance sheet, while higher borrowing costs reduce affordability, depress property values, and shrink the asset side, compounding their financial strain and the challenges in the real estate market. 
(18/19) If you're a real estate investors, you can bring bitcoin onto the asset side of your balance sheet to hedge against the shift of the monetary premium from real estate to bitcoin, and create a more resilient business structure. Bitcoin is not just disrupting the real estate sector; it represents a significant business opportunity. IMO, it's not about choosing one asset over the other, but using both strategically in proper sequence to build wealth and a resilient portfolio over time. Even on a Bitcoin standard, the utility value of housing remains vital—people still need places to live and conduct business, making real estate a crucial service to the market that generates rental income. 
(19/19) Explore these effective bitcoin strategies I've developed to enhance #realestate investment:
Maintenance Reserves: Safeguard cash flow by potentially taking/converting rent in BTC.
Buy to Hedge: Diversify by converting real estate profits into bitcoin.
Refinance: As speculation shifts from real estate to bitcoin, secure your profits and future by refinancing to buy bitcoin. Note: Be cautious of high interest rates.
Utilize Bitcoin: Bitcoin is pristine collateral for lending and the accumulation of bitcoin, for example through rental income or through the sale of real estate to buy bitcoin, provides a company with a new novel capital base to finance operations or further investments.
Incorporate Bitcoin in Financing: Boost creditworthiness and hedge against defaults by using #bitcoin as collateral in #realestate development.
Managing bitcoin custody properly is crucial—consider multisignature setups or multi-custodial solutions to ensure security ('not your keys, not your coins'). 
I would like to thank you for your attention and @BTC Prague for the invitation. What a great event! Well done. My publications on Bitcoin and Real estate can be found in my bio.
(2/19) After learning about Bitcoin in University, I started working in the realestate industry, which allowed me to understand two things:
1. How broken our monetary system is
2. The potential of bitcoin as a superior store of value to real estate.
(3/19) Today, real estate is the number one store of value. Depending on your view on fiat money and debt, up to ⅓ - ⅔ of the world's wealth is stored in real estate. What created #realestate’s role as the world's number store of value ?
(4/19) This development coincided with the “Nixon shock” on August 15, 1971, when US President Richard Nixon announced that the US would end the convertibility of the dollar into gold at a fixed rate. This ushered in a new era of fiat-money, with no currency standard at all. Since then, monetary inflation rates have risen steadily. This has created the use of reale state as the most important inflation hedge (&SoV) in the market.
(5/19) The role of #realestate as an inflation hedge becomes clear when we compare the growth rates of the monetary supply and #realestate prices since 1971.
M2 money supply, which broadly reflects the spectrum of funds available for saving, spending, and investment, has been growing exponentially, with a compound annual growth rate (CAGR) of approximately 6.8%.
(6/19) When we examine the development of the average price of a #home sold in the US, we observe a very similar pattern: the average sales price of #houses has risen at a compound annual growth rate (CAGR) of 5.7%, closely tracking the increase in the money supply.
(7/19) The same trend largely applies to commercial real estate, though its growth has not been as aggressive as that of residential properties, with a compound annual growth rate (CAGR) of around 4.4%.
(8/19) Laying all three graphs on top of each other reveals that real estate prices closely track the growth of the money supply. As new currency enters the market, people invest to protect their buying power. Real estate, with its scarcity and attractive financing options, became the preferred investment. Banks create new money as credit for mortgages, channeling it into real estate and inflating its nominal value. Its rise largely mirrors the debasement of fiat currency, emphasizing real estate's role as a store of value and its substantial monetary premium.
(9/19) In contrary to today, throughout history, the value of land and reale state has been largely tied to its utility—whether for agriculture, living, production, or generating rental income. This trend has spanned cultures and epochs for thousands of years. Historically, real estate symbolized prosperity, often linked to its agricultural productivity and the social status and political power that came with land ownership. The elite enhanced their estates to boost agricultural output and display their wealth. However, using real estate as a form of #money to store value is a relatively recent development.
(10/19) Many #realestate professionals mistakenly think real estate is a solid investment due to its intrinsic value from utility or cash flow. But this is a flawed concept— value is ultimately subjective.
(11/19) #CarlMenger, a pioneer of the Austrian School of Economics and arguably an inspiration for the Cypherpunks' creation of #Bitcoin, demonstrated already in the 19th century that value is subjective. Consider a Rolex watch: its worth is not primarily a reflection of the materials or craftsmanship, but rather what someone is willing to pay for it. Similarly, real estate's high value often stems not from its utility but its use as a speculative inflation vehicle to preserve buying power against inflation.
(12/19) Comparing real estate and bitcoin shows bitcoin's clear advantages as a store of value: limited supply, high liquidity, divisibility, and ease of movement—crucial in a world with increasing conflicts. In contrast, real estate, or 'Immobile' in German (meaning immobile), creates local dependencies and is vulnerable to taxes, confiscation, or destruction. While #realestate generates cash flow, often used to service debt, it does not necessarily prove its reliability as a store of value. Instead, its rising nominal value is more a reflection of the debasement of fiat currency. Banks profit greatly by creating money, lending it, and charging interest.
(13/19) In 2016, the average US home cost about 1000 bitcoin; now, it's just 10. Real estate is losing value fast compared to bitcoin. To stay competitive in real estate or any field, consider changing your unit of account to bitcoin—it's repricing the world. Like many Bitcoiners, I assess #realestate based on its utility value, and it's likely the market will soon align with this perspective.
(14/19) Bitcoin, a near-perfect digital store of value, is disrupting the real estate sector, traditionally valued for its role as a store of value. By introducing digital scarcity, Bitcoin mirrors the disruptive impact of e-commerce on retail in 1995. Both real estate and bitcoin capitalize on scarcity, but bitcoin extends this concept into the digital realm, enabling exponential growth similar to how email surpassed postal services. Its digital nature allows for faster scaling and increased efficiency. Bitcoin preserves value like real estate but without its drawbacks and liabilities, positioning it as the superior store of value for the digital age.
(15/19) The role of real estate as a trusted store of value and inflation hedge is slowly diminishing. Digital disruption by bitcoin is reshaping the investment landscape, as people can now default to saving in bitcoin rather than having to invest in real estate, which will push property values down to their utility value. Additionally, higher interest rates and surging construction costs have made real estate development and ownership increasingly unprofitable. Coupled with rising maintenance costs due to ESG requirements and the financial exclusion of younger generations like Millennials, Gen Z, and Gen Alpha, the real estate market is facing profound structural challenges. As digital natives, these generations are more likely to gravitate towards bitcoin as their preferred (digital) store of value, further destabilizing traditional real estate investments.
(16/19) What happens as bitcoin absorbs the monetary premium from real estate? Housing becomes more affordable, benefiting individuals and families with access to reasonably priced living spaces. But this poses a challenge: How will developers survive?
While using real estate as a speculative investment has its drawbacks, the role of the private sector in constructing housing remains important.
(17/19) Real estate investors face a dual challenge from rising interest rates: debts inflate, bloating the liability side of their balance sheet, while higher borrowing costs reduce affordability, depress property values, and shrink the asset side, compounding their financial strain and the challenges in the real estate market.
(18/19) If you're a real estate investors, you can bring bitcoin onto the asset side of your balance sheet to hedge against the shift of the monetary premium from real estate to bitcoin, and create a more resilient business structure. Bitcoin is not just disrupting the real estate sector; it represents a significant business opportunity. IMO, it's not about choosing one asset over the other, but using both strategically in proper sequence to build wealth and a resilient portfolio over time. Even on a Bitcoin standard, the utility value of housing remains vital—people still need places to live and conduct business, making real estate a crucial service to the market that generates rental income.
(19/19) Explore these effective bitcoin strategies I've developed to enhance #realestate investment:
Maintenance Reserves: Safeguard cash flow by potentially taking/converting rent in BTC.
Buy to Hedge: Diversify by converting real estate profits into bitcoin.
Refinance: As speculation shifts from real estate to bitcoin, secure your profits and future by refinancing to buy bitcoin. Note: Be cautious of high interest rates.
Utilize Bitcoin: Bitcoin is pristine collateral for lending and the accumulation of bitcoin, for example through rental income or through the sale of real estate to buy bitcoin, provides a company with a new novel capital base to finance operations or further investments.
Incorporate Bitcoin in Financing: Boost creditworthiness and hedge against defaults by using #bitcoin as collateral in #realestate development.
Managing bitcoin custody properly is crucial—consider multisignature setups or multi-custodial solutions to ensure security ('not your keys, not your coins').
I would like to thank you for your attention and @BTC Prague for the invitation. What a great event! Well done. My publications on Bitcoin and Real estate can be found in my bio.
I was thrilled to hear the positive feedback on my talk on Bitcoin & Real Estate at @BTC Prague. 🌟 I will post the video as soon as it comes out. Thanks to everyone for coming and especially to my friends who helped me put together the presentation. I will post the slides later today too.
Bitcoin has taught me to respect other people's time because it has allowed me to value my own time.
The 21st edition of The Bitcoin Newsletter “The Need To Protect Individual Freedom” is out. Link in bio. 🧡
https://leonawankum.substack.com/p/the-need-to-protect-individual-freedom
“Thinking is difficult. That's why most people judge” — Carl Jung
Most interesting ‚thing‘ I watched in a while. Opinions ?