Real estate currently in the process of being liquidated. Unsure how many others I’ll convince, but HELoC on the family home you say……….. they won’t suspect a thing.

Analysis should’ve covered the cost of production + risk + profit for builders to profitably build homes, and taken it from there.

That would have more accurately captured all the “premiums” due to building permits requiring much more inputs and the fact that modern homes have orders of magnitude more complex AC, heating, electrics, plumbing, appliances etc.

The issue is more nuanced, for instance:

- “trophy” real estate carries a higher monetary premium and it is likely to retain it because it is objectively scarce (unique location, unique architecture, period buildings etc). This is less than 1% of the properties.

- properties with a yield will be repriced according to the yield and alternative investment yields with similar risk profile.

- all the rest will gradually lose the monetary premium and revert to utility value depending on characteristics of the property and its relative supply-demand on the specific market.

- generally though, excluding the first 2 variables above, real estate should be increasingly demonetized as an asset class if #bitcoin adoption as a SOV increases. This, however, will be contingent on how governments will act because they cannot afford a real estate collapse. Real estate is one of the biggest sources of tax revenue for all governments. Therefore the incentive will be to keep interest low and keep the bubble afloat. On the other side there are strong deflationary forces. Consider the EU for a second. In the last 40-50 years the middle class has used real estate as its main SOV. The middle class was growing wealthier and many had second and even third houses. Usually empty. No returns, just maintenance costs. Now the middle class has been decimated and they cannot afford such properties anymore. Where is all this stock of properties going? Think about it…

Below some excerpts from a Chapter of my book on that topic

Thanks! Left a bit of Claude text at the end fyi

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Hi marty bent 🤟🏴‍☠️😉 Exactly. Real estate has long been used as a store of value because fiat incentivizes asset hoarding. Bitcoin disrupts this dynamic by offering superior liquidity, portability, and scarcity. Those who recognize this shift early are front-running a seismic wealth transfer.

I'm not so sure how inevitable it is that people realize bitcoin is a superior store of value. Like George Carlin said (approx): "Think of how stupid the average person is, and then consider, that half of people are even dumber than that".

I think bitcoiners lose sight of how much knowledge is required to see through the matrix / understand bitcoin fully.

What may be more likely is that Blackrock, which I understand owns an alarming percentage of U.S. really estate, continues to see outsized returns in bitcoin and pivots their allocations accordingly.

I wish it weren't so, but I've just got so little faith in the little guys consumed by their bread and circus and cherry vapes.

nostr:nprofile1qqsywt6ypu57lxtwj2scdwxnyrl3sry9typcstje65x7rw9a2e5nq8spramhxue69uhky6t5vdhkjmndv9uxjmtpd35hxarn9ehkumrfdejsz9thwden5te0v4jx2m3wdehhxarj9ekxzmnytjq0jg "Check out the full podcast here for more on BitBonds, strategic Bitcoin reserves, and the contrasts between DeFi and Bitcoin's approach to reforming the financial system.RetryClaude can make mistakes. Please double-check responses."

RetryClaude can make mistakes. Please double-check responses.

I agree that #Bitcoin will demonetize this space Marty, but the rubber has to meet the road, a mason or electrician will not accept $5 dollars an hour to lay brick or run electrical pipe to build a 70k house…….

What’s more at risk is the overvaluation of the equities market with sky high PE ratios………

Equities will experience more pain than real estate now that #Bitcoin has entered the sand box…….