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Let's say Person A and Person B have €10k in cash and are the heads of 4-person households.

Person A buys a €300k house with a mortgage.

Person B buys ⅕ of a Bitcoin.

Now, suppose Bitcoin jumps 5 times from there, within 10 years, and houses stay the same.

Then Person B is holding the Bitcoin equivalent of €50k. He still doesn't have enough money to buy a house and he's been paying steadily-increasing rent for 10 years.

The other guy has been paying down his mortgage for a decade and even gets to write it off of his income tax. His housing costs never increase, he will eventually have it all paid off, and then he never needs to pay a mortgage or rent again.

It is. What it is.

BE 1y ago

Maybe yes and maybe no. What is versus what only seems to be. Don’t forget about property taxes - backed by the State’s monopoly on violence. And, the person with the bitcoin can cross a border naked with his assets fully accessible while the house owner has to leave it and the land it’s on behind.

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Discussion

Laeserin 1y ago

House owners tend to be people who have put down emotional roots, so that's already accounted for, in the first step (choosing house versus Bitcoin).

BE 1y ago

Good point.