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A hill I will die on:

Fiat has corrupted markets to such a degree that everything must be looked at as a financial investment, housing being the worst example.

Real estate is a consumable good that provides utility; shelter. And it should be priced accordingly. You can certainly add premium value for aesthetics + location, but it shouldn't be treated as a savings account.

Real estate developing a monetary premium because governments and central banks print it out of thin air has completely distorted the real estate markets.

People should be able to simply save money and not have to invest to outpace inflation, but invest when they believe they have asymmetric information that will provide returns.

Bitcoin fixes this.

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Discussion

Bitcoin Dawg 2mo ago

Save in #Bitcoin

Live in #Housing

It’s not rocket science people

Robertrobert 2mo ago

Seconded.

btw snagged $90 of BDCi today (at Fidelity). 🤝

Globe99 2mo ago

Like gold, housing gets sometimes put into this "hard asset" category along with Bitcoin. But one has to keep in mind that on the dimension of portability, it goes Bitcoin >> gold >> housing.

Housing ties you up with a 30 year-fixed mortgage (itself a peculiar product of US government intervention) to a particular spot of land, the surrounding government of which might at any time deem you "undesirable" for whatever reason. It is a form of wealth that is both highly legible and confiscatable in ways BTC will never be.

Toxic Bitcoiner 2mo ago

nostr:note14569v0yks4fx8qh32trj6ek4csw85pnek0w4a7ku9nqjdmjcztzqnh2cys

𝐭𝐢𝐠𝐞𝐫 2mo ago

gold has pulled in trillions over last few years , but has it managed to pull monetary premium out of houses and other assets? everything bubble suggests not

can bitcoin pull monetary premium out of other asset classes if gold failed? 🤔

Benking 2mo ago

Perfectly said. Fiat broke the world, Bitcoin restores sanity. 🧡

Minister of Finance 2mo ago

No it's not, you should have to beat inflation or things remain $1 for a hundred years. That's just one thing, this thought is ridiculous

wymike 2mo ago

Is it an issue if things remain $1 for a hundred years?

Neal 2mo ago

Found the FED

Judge Hardcase 2mo ago

💯 ... would like to add: the OG source of monetary premium was preferential tax treatment on mortgage interest. i.e. prices get distorted higher when the government is subsiding mortgages.

PS. It's also worth noting that the chart comparing housing to the S&P is disingenuously misleading in this context - as it ignores some obvious ancillary financial benefits of home ownership - most notably: not having to pay rent (and/or otherwise collecting rent).

Jake Woodhouse 2mo ago

Real estate has a time and place, especially as a primary residence

But a “portfolio” of real estate for “growth” is a poor allocation

Tool many years for me to learn that

Jonathan 2mo ago

Just had this conversation with a commercial real estate broker and investor. Most of his colleagues are preparing to become poor he said, and if he was 21 and had to find the same job he couldn't do it today. I've been working on him to move to bitcoin, but it's harder for a rich man to enter bitcoin than a camel going through the eye of a needle.

Jamie 2mo ago

100% agree and hope to see things move in this direction for the next generation. If it does happen, a lot of people will feel pain when the housing market turns deflationary.

Vincent 2mo ago

I’ve been seriously considering selling my place and putting it into bitcoin and just renting.

Jamie 2mo ago

These are the reasons I don’t do this:

1. Family / Community

My family is part of a community that we love. Many years down the road, I want my grandkids to have experiences that home ownership provides.

2. Renting

There is a fixed cost that will always go up. The owner will need to make money on the property.

3. Cost of Switch

The switch would cost $30-60 grand with fees, moving expenses and purchase new furniture.

4. Market Timing

What if the market turns just after the switch and a large percentage is lost of the lump sum made from the house sell.

5. Re-entering Housing Market

Later, I’d want to buy a house and my money would be tied up in btc. I wouldn’t want to sell it and take the capital gains hit. Any btc I hold in savings, I want to keep until countries have better tax regulation.

For me, I’m more comfortable with the DCA and milking the low mortgage interest rates.

Everyone’s situation is different though.

Clayton 2mo ago

Most underrated bitcoin book IMO that sums this up beautiful is Gradually, Then Suddenly

Texas Water HODL 1mo ago

Agree 100%. I think people are starting to realize this. Interesting to see what the market will do on land prices in the next few years as more folks save in Bitcoin or other financial devices. Although, it seems like states will more freedom will still be receiving political refugees from places like New York, which will keep prices high in Florida and Texas.