I'm currently in the process of writing the third and final chapter of my book "Digital Real Estate". In Chapter 3, I will examine how a hypothetical Bitcoin standard would change #lending practices: Under a Bitcoin standard, debt denominated in bitcoin would increase in value over time due to bitcoin's disinflationary nature and limited supply. This requires careful consideration of the amount of debt one is willing to incur. While a Keynesian would argue that such a system could harm short-term productivity by discouraging borrowing, this view overlooks a crucial long-term benefit: A Bitcoin standard encourages more responsible economic behavior by compelling individuals and businesses to carefully evaluate their financial decisions. This shift addresses a significant issue in the current fiat system, where individuals and institutions are often incentivized to take on excessive risk and accumulate unnecessary debt, while savers are penalized as the money supply increases and purchasing power of savings decreases. By fostering accountability and prudent decision-making, a Bitcoin standard can lead to a more stable and disciplined economic environment. #DigitalRealEstate

As bitcoin mining technology advances and its economic benefits for real estate become more apparent, we're likely to see a wider integration of bitcoin mining into #realestate infrastructures.

At this year's Baltic Honeybadger in Riga, I discussed how the #realestate sector can benefit from incorporating bitcoin into their financing strategies. You can watch the full presentation in the recorded live stream: https://www.youtube.com/live/tgQHBN2PtMo?si=5Ar279qHzsSToPaq

It's always a great feeling to send bitcoin to a Bitcoiner.

In the 24th edition of my newsletter, I explore bitcoin's potential as a pristine asset for lending. While bitcoin is often recognized for its primary functions as money (a medium of exchange, store of value, and unit of account), IMO its potential as collateral is particularly interesting.

Exploring Bitcoin's Potential as Pristine Collateral for Lending

TBN 24 - In this edition of the newsletter, I explore bitcoin's potential as pristine collateral for lending.

Cashu still blows my mind.

Good morning, today I will start working on my first Long Format Nostr article to share my slides from Riga with you!

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?

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 🌞