A common argument I get AGAINST owning Bitcoin and FOR owning #realestate:
"People don't need to own #BTC , but they DO need a bed to sleep in -
that's why I will keep buying real estate and not #Bitcoin ."
This is a very uninformed argument and shows that you have a limited understanding of why you buy houses as a store of value in the first place.
People also need veggies, fruits, rice, and meat to survive.
But you don't see investors buying food as a store of value... right?
Food can be mass-produced and is not scarce.
Utility does not mean the market price of something will increase, or even be maintained.
Bitcoin is designed to be the best store of value because you can't make any more of it.
This is the first time we have an asset with a programmatically limited supply.
Bitcoin's scarcity is what will lead to a massive increase in its price.
House prices always go up in terms of fiat currencies because fiat currencies are not scarce.
They can be printed at will.
Housing is not as scarce as BTC, and technology will make houses even MORE abundant.
If someone can buy a 3d printed house to satisfy their need for shelter and it costs them 25% of what a regular house costs...
What will they choose?
If 3d printed houses cost a lot less and can be made in half the time, what happens to real estate as an investment?
Do you think the price of your house will still go up if the supply of houses increases significantly?
Supply and demand are the most important economic concepts in EVERY market.
The supply of homes is artificially limited by real estate investors and governments.
If someone can increase supply but demand doesn't keep up, the price will drop.
This applies to Bitcoin too - if we figure out a way to increase Bitcoin's supply from 21,000,000 BTC to 42,000,000 BTC, for example, Bitcoin's market price would tank.
People own Bitcoin because of its scarcity.
Real estate investors also own real estate because it's scarce and it has historically maintained or increased their buying power.
Today, real estate is used as a store of value by the vast majority of investors.
When investors get out of real estate, the price of a house will drop to its utility value.
I think Bitcoin will speed up the process of demonetizing real estate.
As more people realize that Bitcoin is a much better store of value, they will sell their real estate at market prices, pushing prices down.
People who think that their real estate will just keep increasing in price because of utility are in for a VERY rude awakening.
Real estate is already unaffordable at current prices to the vast majority of people.
More and more people are forced to rent because they can't afford to buy.
What happens when newer generations give up on real estate as an investment?
Eventually, this will be the case...
Supply will outpace demand at current prices.
Real estate investors: have you taken this into account?