“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.

https://bitcoinmagazine.com/culture/how-bitcoin-will-make-housing-affordable