Banks will start seeing real estate as risky.
Bitcoin is the best savings technology.
It’s therefore also the best collateral.
Hence, Bitcoiners will become the best and most "risk-free" borrowers.
Everyone who does not have Bitcoin will be considered as a more riskier borrower.
This will create pressure on real estate that is used as collateral.
What if banks are starting to see this?
How will they act?
Will they reevaluate real estate?
What if they start to think real estate is even riskier than it is today?
What will happen to the underlying real estate?
As Bitcoin monetizes and establishes itself into TradFi, money is moved from other assets to Bitcoin.
That's the "wealth shift" we're talking about all the time.
Yes, we all need a place to live. But the times where you buy nice property thinking you will be able to sell it for a much higher price may already be over.
Bitcoin is here to stay and it will be adopted more quickly from here on out.
Bitcoiners know the value of what they own.
More and more are starting to never sell their Bitcoin just to buy things, especially an overpriced home.
They will keep their Bitcoin, rent instead and wait for it all to play out.
As more and more learn about this and start doing the same, the price of Bitcoin will increase faster while the prices of real estate will fall faster.
However, as this happens, people dealing with other assets than Bitcoin will start seeing the other asset as riskier and riskier in at least two ways:
- there's opportunity costs of not having moved wealth into Bitcoin already ("Time in the market beats timing the market", especially in Bitcoin).
- there's increased risk that other players will realize the same and front run them.
That's the game theory part that will play out faster and faster.
The more I think about all this, the more I believe the "suddenly" phase will happen way faster than we all think it will play out.
