This content got 50 likes on Twitter. Let's see how it does on Nostr...
What makes #bitcoin a superior store of value to traditional real estate?
1.) Real estate is EXTREMELY location specific. Your cashflow hinges on local fundamentals/expenses, local regulation, local zoning, local taxation and local population growth.
#Bitcoin is location agnostic. It exists everywhere and nowhere, able to escape authoritarian regimes.
2.) Real estate is EXTREMELY cost intensive. A new roof, functional obsolescence, structural damage, etc can destroy months of cashflow. If you cannot service it or are forced to sell, we call that DISTRESSED. Sound familiar in 2023?
#Bitcoin has no ongoing user maintenance costs.
3.) Real estate profit is EXTREMELY skewed toward operators. As an LP, you are placing your capital in the hands of your operator (GP), who makes the bulk of property decisions w/r/t your investment $.
With #Bitcoin, you control where and how it's controlled. No counterparty risk.
4.) Real estate is EXTREMELY illiquid. The sale process of even a highly-desirable CRE asset is typically 2-3 months. Marketing, offer process, due diligence, closing, etc takes time.
#Bitcoin is a 24/7/365 highly-liquid marketplace with a network uptime of 99.99% since 01/03/2009.
5.) Real estate, particularly CRE, has an EXTREMELY high entry-level cost. Even a small $3M deal typically requires ≥$600,000 in equity. With 60% of the US population living paycheck-to-paycheck, CRE ownership is a dream.
If you have $1.00 to your name, you can buy #BTC today.
6.) Real estate is EXTREMELY management intensive. If you outsource management, it's expensive. If you manage it yourself, it's time-consuming.
#Bitcoin allows you to pocket your "digital real estate" and take your UTXO ownership with you wherever you go.
100% transportability!
7.) Real estate is EXTREMELY subject to environmental risk. Did a neighbor leak hazardous chemicals onto your property? Did a hurricane come through? Hail, flooding, other acts of God?
#Bitcoin exists solely in cyberspace. It does not decay under time or material conditions.
8.) As rental rates rise, so does the $ incentive to construct MORE real estate.
#Bitcoin has a perfectly inelastic supply (21m only). More demand ≠ more btc. As more miners join the network, the more secure the network becomes. As more use #btc, the higher the price should rise.
9.) All of these factors render a blanket conclusion:
For the average person, #bitcoin is a superior alternative as a store-of-value and wealth builder over RE. BTC has less risk, more upside, all while boasting superior returns on a risk/reward basis for long-term holders.
Kudos to the #[0] team and Hard Money show for the great content.
Working in Commercial Real Estate, sometimes it be like that
the next Nostr Unconference will be in Tokyo & Hong Kong🇯🇵
1-3 November ⚡️Unconference in Tokyo 💜 Meetup in Hong Kong
Simultaneous streams of both for virtual attendees.
More to come~
We need your help naming them: https://docs.google.com/document/d/1fx4vTUykVHEbM_dpAnoMHzBAU-VQ9hQsJB8NA2SqH70/edit#
#[2] 👀
The fact we live at a time in monetary history where you can pay with (i) paper money, (ii.) electronically via tapping your phone, and (iii) privately and without permission using Bitcoin, goes under appreciated.
Can’t tell if Bikram Yoga is making my left knee better or worse. 🫠
100%. I've found some newer banks allow for it, like Mercury for small businesses.
My guess is SMS 2FA is relatively easy for Boomers and older GenXers to grasp. 2FA AUTH apps, not so much. Would create a huge uptick in customer service needs.
@similarity bot recommend
I’m waiting for the Doge implementation. The logo stunt felt like foreshadow.
Even more so the idea of a select few controlling the eb/flow of money.
CSW is no Satoshi, but he might be Rudy Kurniawan.
Looking forward to more mistakes by Twitter to drive NOSTR growth 👊🏽
By forfeiting your liberties, you trade a possible enemy for a guaranteed one.
Damn only 27 more sats needed for generational wealth.
You don't need to be a chart specialist to know that 2023 will be serving up lots of humble 🥧 to late-cycle RE investors.
Meanwhile, bitcoiners will be enjoying their baklava.
Sure, WFH is affecting the office market.
Though the greater short-term threat to office are accelerating job cuts, particularly among white-collar workers.
If we assume 1 employee = ~200 SF of office, a layoff of 500 = (~100,000) in net absorption.
This chart is tech alone.
12/ This thread scrapes the surface of the similarities between RE/BTC at a high level.
Deeper threads are possible, but become laden with jargon from either side... BTC witness data, block space, UTXOs... absorption, caps, NOI, zoning/FLU, etc...
Eventually, maybe.
11/ Sure, you "cannot live" in Bitcoin, just as you cannot pick up your 15-unit multifamily property in California where tenants are legally 'squatting' for months on end without payment and move it to another state.
There are obvious pros/cons to each asset. Caveat emptor.
10/ Bitcoin is arguably one of the most valuable humanitarian tools ever created, if embraced.
It provides a path forward toward the separation of money and State.
An escape hatch from monetary control and the financial surveillance panopticon being ushered in globally.
